Brewer and pubs group Greene King toasts progress in dining strategy

GREENE King’s push into pub dining continued to reap rewards after it defied the consumer downturn to report another round of strong food sales figures.

The Suffolk-based brewer and pubs chain, which operates across Merseyside with its Hungry Horse, Old English Inns and Loch Fyne Restaurants brands, said like- for-like sales in its retail division rose 4.3% in the 10 weeks to last Sunday, driven by a 4.7% rise in food.

While the company said the outlook remained uncertain, it said the expansion of its retail division following the recent acquisitions of the Cloverleaf and Realpubs chains, should help it deliver further growth.

Investec Securities said the update was in line with expectations, although the broker is forecasting a slight drop in full-year profits to £136.1m.

Analyst Paul Leyland also has a sell rating on the stock amid fears over the company’s exposure to trends in consumer spending. But he added: “We see Greene King as a well-run operator capable of continued investment and market share growth.”

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