 fell over 10 percent on Wednesday, after scaling back the number of restaurants it planned to open in 2017.){kind=link}
Shares in Lebanese restaurant chain Comptoir Group (LON:COM) fell over 10 percent on Wednesday, after scaling back the number of restaurants it planned to open in 2017.
In a statement, the company said the decision was made due to the opening programme being ahead of the schedule anticipated at the IPO. Due to this, Comptoir only expect to open a further three restaurants this year. Chairman Richard Kleiner said:
“2017 will therefore be focused on bedding in new openings, promoting the Comptoir brand to consumers in new locations and delivering on anticipated returns.
“During the first quarter of 2017 we have experienced the UK consumer being cautious. “The board has made the decision to reduce its opening schedule for 2018 to 4 restaurants in 2018 (4 in 2017), which will impact the financial performance in 2018.”
The group also released their results for 2017, with revenue increasing 21 percent to £21.5 million. Gross profit rose 21 percent to £15.7 million, with adjusted EBITDA up 7 percent to £2.7 million.
Kleiner continued: “Trading in January and February, traditionally the company’s quietest months, was below expectations, however, we saw improved trading in March.
“The group expects further positive trading in April (which includes Easter) and into the summer months.”
The existing restaurants delivered a ‘solid’ performance, with further growth from the restaurants that were opened late in 2016. Despite cost pressures in the supply chain in the wake of Brexit and the introduction of the National Living Wage for employees over the age of 25 in April 2016, Comptoir controlled costs and overall margins have been maintained.
Comptoir shares are currently trading down 11.76 percent on the London market, at 45.00 (1101GMT).