Traders wipe nearly £92m off value of The Restaurant Group after its chief executive reveals he is stepping down
Traders wiped nearly £92m off the value of The Restaurant Group (TRG) after its chief executive revealed he is stepping down for personal reasons.
Andy McCue, 45, joined from Paddy Power to head TRG in September 2016, and has just steered through a controversial £559m takeover of noodle chain Wagamama.
But investors were dismayed by his departure, sending shares down 11.1 per cent, or 16.2p, to 129.8p last night. McCue said: ‘In recent years, we have achieved much in a challenging market. While I recognise that this decision is untimely, it is the right one for me and my family. We have a strong team in the business and a clear plan which we are focused on delivering.’
Bad taste: Shareholders had expressed concerns over the Wagamama takeover
Shareholders had expressed concerns over the Wagamama takeover, warning that TRG needs to turn around the core business first.
The Restaurant Group also owns Frankie & Benny’s, Garfunkel’s and Chiquito.
It has struggled to grow sales amid a slowdown in spending on the High Street and stiff competition from online delivery sales such as Deliveroo and Just Eat.
Greg Johnson, analyst at Shore Capital, said: ‘The news is clearly disappointing from a TRG investor perspective, especially given how soon the announcement is post the Wagamama deal and the ongoing integration.’
TRG chairman Debbie Hewitt said: ‘Whilst we are disappointed that he will not be able to provide the long-term leadership for the business, we understand and respect the decision.’
McCue will remain in the role until a replacement is found.