Activist investor increases pressure on The Restaurant Group ahead of results

The Restaurant Group (TRG) resisted the calls, saying it was already undertaking its own review, and refused to grant the investor a seat on its board.

Today the Financial Times reported that Oasis, which holds a 6.5% stake in the business, had threatened to push for the removal of the group's boss. The news followed a report in The Times last week suggesting the group could consider the sale of its Brunning and Price pub business.

Shares in TRG, which owns over 400 UK restaurants and is also behind the Frankie & Benny's and Chiquito brands, fell by two-thirds over the past year.

TRG said in its response to Oasis' original letter that its performance had been strong since the ending of coronavirus restrictions, with sales outperforming the wider casual dining market.

The casual dining operators' full-year results will be announced tomorrow, with an AGM to be held in May. At last year's AGM the positions of CEO Andy Hornby, chair Ken Hanna and CFO Kirk Davis were all endorsed with 99% of shareholder's votes.

Oasis has been asserting pressure on the business in the run up to the results announcement. In one public letter the hedge fund had also criticised TRG for not disclosing any trading information on its performance since its interim results were published in September 2022.

It added that shareholders "unfortunate enough" to participate in TRG's three equity capital raises over the past five years had seen the value of their investment "collapse by c.70% since 2018".

Oasis said: "Longer-term shareholders have suffered even worse, losing a staggering c.93% since the 2015 peak, whilst currently receiving no dividends, buybacks or capital appreciation."

The hedge fund said the board's "refusal to acknowledge" the scale of the company's losses showed the need for more accountability at board level.

TRG bought Wagamama for an estimated £559m in 2018.

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