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Authoritative Independent Monthly Share Selections Using Technical & Fundamental Analysis

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Restaurant Group - Acquires Mexican restaurant chain

September 2022

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

  • Epic Code:
  • RTN
  • Price:
  • 50p
Restaurant Group has announced the acquisition of Barburrito, an award winning Mexican style fast-casual restaurant chain, focused on fast, fresh, affordable (average spend c. £10) and healthy Mexican food, which adds another useful leg to growth.  The deal cost £7m and Barburrito’s 16 existing sites are expected to make EBITDA and pretax profit of c. £1.6m and £0.8m, respectively, over the next 12 months implying an exit run rate of just 4.4x EBITDA.In a sign of confidence Restaurant Group has also chosen to repay £44m of term loan facilities, reducing total available debt to £361m but it retains un-used headroom in excess of £190m against these facilities. It’s also purchased interest rate caps on £225m of debt to protect against ...

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