Restaurant Group rocked by shock CEO departure
Shares in Restaurant Group tumbled on Thursday as the company said chief executive officer Andy McCue is leaving due to "extenuating personal circumstances".
FTSE 250
19,601.98
17:09 25/04/24
FTSE 350
4,434.34
17:09 25/04/24
FTSE All-Share
4,387.94
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Restaurant Group
64.80p
16:45 20/12/23
Travel & Leisure
7,552.90
17:09 25/04/24
The company, which bought Wagamama last year, said a search for his successor will begin immediately, with McCue expected to remain in his position until an appointment has been made.
McCue said: "In recent years, we have achieved much in a challenging market. I'm confident The Restaurant Group is well positioned with the scale, talent and levers to drive profitable growth. While I recognise that this decision is untimely, it is the right one for me and my family. We have a strong team in the business and a clear plan which we are focused on delivering."
Chairman Debbie Hewitt said: "Andy has brought a strong vision, developed a first-class team and laid the foundation of the company's transformation. Whilst we are clearly disappointed that he will not be able to provide the long-term leadership for the business, we understand and respect the decision he has made purely on personal grounds."
The group also said in its statement that current trading remains in line with expectations.
At 0940 GMT, the shares were down 12% to 128.48p.
Russ Mould, investment director at AJ Bell, said: "What an unfortunate outcome for Restaurant Group. Losing its chief executive at such a crucial point in its recovery story is devastating for shareholders who have already gone through hell over the past few years.
"While we don’t know the full story as to why Andy McCue has resigned beyond it being for personal reasons, the news will rock the ship once more at Restaurant Group.
"There is a risk, or an opportunity depending on how you view it, that McCue’s replacement will want to tear up the recovery plan and make some more radical changes. Whoever takes the top seat will definitely need some bright ideas to get this one-time leisure sector superstar back on track."
At 0945 GMT, the shares were down 11.5% to 129.20p.