The Restaurant Group is one of the most consistent performers in its sector, and one with the best prospects for growth. This, however, may be because the only obvious comparators are the pubcos, some of which are so strapped for cash that expansion is beyond their capabilities.
Danny Breithaupt, the new chief executive, was setting out to the City his plans to double the group in size over the next eight to ten years, from its present 450-plus outlets. The biggest growth, proportionately, will come from its newish Coast to Coast American-themed chain, followed by the Tex-Mex Chiquito brand.
That expansion will be entirely funded by internal cashflow — the company converts more than 100 per cent of earnings into cash. The first-half figures showed