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Summary
- The travel and leisure sector has been one of the worst-hit sectors due to national lockdowns
- Since the reopening of indoor dining and other non-essential businesses, there has been a surge in customers due to pent up demand
- Shares in the Cineworld Group and Restaurant Group rose over 2 per cent each due to this boost in footfall
The travel and leisure sector has been one of the most affected by the pandemic induced national lockdowns. However, the sector has been seeing some green shoots recently as the UK slowly eased restrictions for most of the businesses.
Businesses have witnessed a rise in demand after indoor dining, and other leisure and entertainment related businesses reopened on 17 May due to pent up customer demand, under the third phase of its lockdown easing guidelines.
In this article, let us deep dive into why two FTSE 250 listed travel and leisure stocks with a five-year average dividend yield of over 4 per cent surged in early trading today:
- CINEWORLD GROUP PLC (LON: CINE)
FTSE 250 listed cinema chain Cineworld Group announced it had a strong opening weekend across the UK due to the release of the movie Peter Rabbit 2 attracting family audiences. The group also forecasted it would have a good recovery following months of zero trading due to the third lockdown.
The group recently reported a record loss of US$ 3.01 billion for the last year due to business closures.
(Sources: EODHD/Others, Thomson Reuters)
CINE’s shares were trading at GBX 89.42, up sharply by 3.00 per cent while the broader index FTSE 250 was trading at 22,422.68, up by 0.10 per cent on 24 May at 09:10 HRS GMT+1.
The group’s market cap stood at £1.192 billion, while its five-year average dividend yield stood at 6.5 per cent.
Also Watch: Cineworld Plc - A Stock Everyone Would Love to Watch!
- RESTAURANT GROUP PLC (LON:RTN)
Another FTSE 250 listed company Restaurant Group also surged in early trading today, buoyed by the reopening of indoor dining last week.
The UK based restaurant chain and Wagamama owner recently announced its plans to raise up to £175 million, with up to £95 million through a firm placing and £79 million via a placing and open offer. Both the fundraising methods are expected to be priced at 100 pence per share.
(Sources: EODHD/Others, Thomson Reuters)
RTN’s shares were trading at GBX 125.00, up by 2.46 per cent, while the travel and leisure sectoral index was trading at 8,452.99, up by 0.42 per cent on 24 May at 09:25 HRS GMT+1.
The group’s market cap stood at £933.34 million, while its five-year dividend yield average stood at 5 per cent.
Also Read: Quick Glance on Two Restaurant Stocks – JD Wetherspoon PLC & Mitchells & Butlers PLC
