Prezzo serves up expansion

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Restaurant operator Prezzo yesterday served up a 12 per cent rise in profits for the six months to 30 June to £8.5 million after expanding the size of its chain.

The group now has 181 Prezzo and 33 Chimichanga outlets, having opened seven during the first-half of the year, with turnover climbing by 17 per cent to £79.7m.

A further 23 restaurants are due to open before the end of the year.

Wayne Brown, an analyst at Canaccord Genuity, said: “The group is not exposed to any energy inflation – locked into medium-term contracts – and is seeing circa 2-3 per cent food cost inflation.

“This suggests Prezzo requires around 4-5 per cent sales growth to offset these pressures, which leaves significant headroom and firepower on promotions, marketing and discounting.”