The company is trading at £6.72. It hit a record high of £7.17 in April but the stock has drifted back since then. The year 2013 was good for The Restaurant Group — full-year profits rose by 13% to £72.7 million. This compared with analysts’ estimates of £72.1 million.
The company’s CEO Andrew Page stated that the British economy is showing signs of ‘improvement’ and that lower unemployment and inflation benefits the sector; both economic indicators are continuing to move in the right direction. Mr Page will step down as CEO this month. He has spent 12 years at the firm, and in that time the market capitalisation has gone from £75 million to £1.2 billion. Talking about the share price, Mr Page previously suggested that when it reached the £5 mark 'I will feel that we have done a good job'.
Analysts have an appetite for the stock — out of the 15 recommendations, eight are buys, six are holds and one is a sell. The 200-day moving average of £6.19 is providing support. If the figures exceed estimates, and if the full-year outlook is good, the stock could target £7.