UK franchise of an American themed restaurant chain providing a high energy, fun environment with a wide demographic appeal

Investment valuations

For the year ended 30 September 2019
Investment valuations 142 126* 168* 127*

* Adjusted for additional investments made post year end.


Portfolio company performance

For the year ended 31 December LTM**
Sales (£m) 241.0 208.8 216.0
Operating Profit (£m) 16.1 14.2 22.3
EBITDA (£m) 26.9 25.3 33.3
Return on capital employed (%) 14.3% 13.1% 11.0%

**Based on last twelve months ("LTM") unaudited management accounts. 

In the 12 months to 30 September 2019, TGI Fridays achieved growth in revenue and EBITDA on both an overall and a “like-for-like” basis from the prior period. This reflects both the sustainable new restaurant roll-out plan maintained by TGI Fridays and the resilience of maintaining gross margins during the challenging prior year of 2018. The business continues to be strongly cash generative and provides increasingly attractive returns on capital despite challenging market conditions and uncertainties around Brexit. 

Whilst underlying market demand continues to grow modestly, market conditions remain challenging with continued oversupply in the casual dining market being compounded by rising costs across a number of areas. In response to these conditions TGI Fridays continually seeks to improve its proposition, updating its menus, refreshing its restaurants and developing its staff, as it aims to provide an experience that is valued by its customers. 

TGI Fridays consistently performs strongly in UK brand perception surveys, consistently outperforms its market from a financial perspective and has an enviable reputation in the industry for operating processes and efficiency. We intend to build on this strong base by ensuring the business continues to evolve in meeting changing customer needs and expectations whilst retaining and building on its strong brand heritage and values.

In early December 2019, Robert Cook succeeded Karen Forrester as CEO. Robert brings experience of leading growth and profitable development within the multi-site food and beverage industry and also of successfully managing businesses through challenging times in adjacent sectors. We are also strengthening the wider TGI leadership team with a blend of sector-specific and adjacent skills and experience in key areas. Through these changes we confidently believe that we can build on the strong position and heritage of TGI to match evolving customer expectations and develop profitability in a strong, growing and sustainable business.


Robert Cook


Based on multiple of earnings



December 2014





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