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Mon 26th Jun 2017 - Wagamama reports UK like-for-likes up 8.2%, sites average £40,600 a week each
Wagamama reports UK like-for-likes up 8.2%, sites average £40,600 a week each: Wagamama has reported UK like-for-like sales increased 8.2% for the year ending 23 April 2017. Group turnover increased 15.8% to £266.1m primarily due to the continued expansion of its restaurants in the UK. Its UK sites, which account for 96.8% of company-operated restaurant turnover, increased turnover 15% to £255.2m compared with £222m the previous year. The company said this was primarily due to the opening of four new company-operated restaurants (net of six closures) and the 8.2% like-for-like sales increase. As at 23 April, the company operated 124 restaurants in the UK. Average spend-per-head was about £16.30 (including VAT) while average weekly turnover per restaurant was about £40,600. About 83% of its restaurant revenue in the UK was attributed to food sales and approximately 17% to drink sales. For the same period, its food revenue was split as follows – 23% sides, 21% curry, 20% other mains, 19% teppanyaki, 13% ramen and 2% desserts. Its average UK restaurant is 4,374 square feet in size and, on average, can cater for about 144 covers at any one time. During the year it received, on average, 38% of its consumers in the evening, 33% during lunchtime, 21% in the afternoon, 5% in the late evening and 3% at breakfast. According to the Morar Report, its customers are younger on average, with about 62.6% under the age of 40. Turnover in its restaurant business in the US increased 35.1% to £8.3m compared with £6.2m the year before. This was primarily due to the opening of its New York City restaurant in November 2016 and an 8.6% growth in like-for-like sales, partly offset by the closure of one Boston restaurant in the first quarter of the 2017 financial year. As of 23 April, Wagamama had four company-owned restaurants in the US – three in the Boston area and one in New York City. Turnover from its international franchised restaurants increased 50.6% to £2.6m compared with £1.7m the previous year. This was primarily due to the opening of nine new franchised restaurants (net of two closures). As of 23 April, the company had 44 franchised restaurants across 19 countries in Europe, the Middle East and New Zealand. Group adjusted Ebitda was up 17.6% to £45.5m compared with £38.7m the year before while the adjusted Ebitda margin rose to 17.1% compared with 16.9% the previous year. It reported pre-tax profit increased to £9.3m compared with £3.6m the year before. Cost of sales increased 18.7% to £150.7m. Total operating costs consisted of 38.7% labour costs, 21.3% ingredients, 15.4% other costs, 9.7% rent, 7.5% other property and 7.4% head office costs. Wagamama has launched an offering of senior secured notes due in 2022 in an aggregate principle amount of £225m. It said the gross proceeds of the refinance will be used to redeem all of Wagamama Finance’s £150m of outstanding senior secured notes, pay the accrued interest and the redemption premium for the outstanding senior secured notes, and repay certain amounts of deferred interest on loan notes. The company opened ten new restaurants and completed 16 refurbishments during the year. Wagamama said it was now working with Deliveroo at 92 restaurants. The company stated: “A significant portion of the growth of our turnover during the 2017 financial year is attributable to turnover from newly opened restaurants. We plan to continue to open new company-operated restaurants in the UK and US where we believe there is opportunity for growth and to open new franchise restaurants in countries where we believe there is an opportunity for profitable expansion. In the next 12 months, we expect to open approximately ten new restaurants in the UK as well as a second restaurant in New York City and a new restaurant in Boston. We expect our total capital expenditures for the 53 weeks ending 27 April 2018 to be about £28.0m, in line with our strategy for continued growth in the UK and internationally.” During the year the company employed, on average, about 5,077 people. This included about 4,947 restaurant and distribution staff and about 130 administrative staff. About 61% of its employees were not British citizens.

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