WTB, MAB, CPG: Stocks under lens as restaurant chains rack up huge losses

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WTB, MAB, CPG: Stocks under lens as restaurant chains rack up huge losses

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 WTB, MAB, CPG: Stocks under lens as restaurant chains rack up huge losses
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Highlights

  • Top 100 restaurants in the UK have seen their losses swell by 24% to £832 million from £673 million in just the past six months, as per a report.
  • Restaurant chains during the pandemic were forced to close their operations, which lead to an increase in their debts to unsustainable levels.

Top 100 restaurants in the UK have seen their losses swell by 24% to £832 million from £673 million in just the past six months, according to an analysis by accountancy firm UHY Hacker Young. The losses were largely on the back of major restructuring initiatives introduced in the wake of the coronavirus pandemic.

The UK’s top 100 restaurants have seen their losses swell by 24% to £832 million

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Restaurant chains during the pandemic were forced to close their operations, which lead to an increase in their debts to unsustainable levels. This forced some of them to write off their debts through arrangements like the Company Voluntary Arrangements.

Since the UK economy reopened, the Russia and Ukraine war magnified and led to the global slowdown and sharply rising inflation, supply chain delays, and rising costs of energy and food items, which altogether created more challenges for the restaurant owners.

Let us look at 3 FTSE-listed restaurant stocks that investors can focus on.

  1. Whitbread Plc (LON: WTB)

The shares of the multinational UK-based hotel and restaurant company, Whitbread Plc were trading at GBX 2,557.00, up by 1.23%, at 08: 00 AM (GMT+1) on 14 June 2022. The share has value has fallen in the last one year due to pandemic hurdles and was at -22.78%. Its year-to-date return stood at -14.52%. The FTSE 100-listed company’s market cap stands at £5,103.10 million as of 14 June 2022.

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  1. Mitchells & Butlers Plc (LON: MAB)

With a market cap of £1,199.83 million as of 14 June 2022, the shares of the FTSE 250 listed operator of pubs, restaurants, and bars in the UK were trading at GBX 201.00, at around 08:00 AM (GMT+1) on 14 June 2022. Mitchells & Butlers Plc’s share value has depreciated over the last one year and was at -32.92%, while its year-to-date return stood at -20.55%.

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  1. Compass Group Plc (LON: CPG)

The market cap of the multinational contract foodservice company, Compass Group Plc, is £29,631.50 million as of 14 June 2022. Its shares were trading at GBX 1,680.00, up by 1.05%, at 08:00 AM (GMT+1), on 14 June 2022. The FTSE 100-listed company has provided its shareholders with a return of 3.26% over the last one year as of 14 June 2022, while its YTD return stands at 1.54%.

Note: The above content constitutes a very preliminary observation or view based on market trends and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.

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