Wagamama owner The Restaurant Group (TRG) said on Monday that it has bought Mexican restaurant chain Barburrito for £7m in cash.
The business currently operates across 16 sites in high-footfall locations across a range of formats and TRG said it is “well aligned with key consumer trends including healthy eating, convenience, customisable cuisine and offers high quality products at attractive prices with an average spend per customer of circa £10”.
For the period ended 26 September 2021, Barburrito’s pre-tax profit was £1.7m and as at 26 September 2021, its gross assets were £3.9m. The pre-tax profit figure benefitted from significant temporary government support, however.
Barburrito will be integrated into TRG’s Leisure & Concessions division, with the key operational team from Barburrito retained.
TRG also announced that given its “significant” cash headroom and confidence in the underlying cash generation across its businesses, it chose to repay a further £44m of its term loan in June, thereby reducing its total available debt facilities to £361m.
The debt facilities currently comprise a £241m term loan and a £120m revolving credit facility which is undrawn. The group currently has cash headroom in excess of £190m against these facilities.
