TGI Fridays has restored its UK business to growth by reporting a 0.5% increase in like-for-like sales for the year to 31 December 2017, according to annual accounts lodged with Companies House.
Turnover rose from £211m to £216m over the year, which also represented a 5% improvement in underlying sales. In the previous period the company had seen sales decline 3%.
The American-themed casual dining chain, which is run as a franchise in the UK by Thursdays (UK) Limited, said the level of growth was “in line with directors’ expectations and the current economic climate” and follows “actions” taken by the business to improve its position.
EBITDA, before share-based payment expenses, reached £33.3m, which was almost identical to the previous year.
Operating profit fell from £20.9m the previous year to £19.9m this time around, while net profit slipped 4% to £17.7m.
Fridays, which runs more than 80 restaurants in the UK, said it was continuing to launch new stores and has renegotiated the franchise agreements on all existing sites until 2032.
It stated: “During the period, the company opened five new sites and all recent acquisitions are performing in line with expectations. The company continues to actively seek new sites.”
Fridays employed 3,256 people at year-end, up from 3,197 the previous year, with the growth likely to be down to the new store openings. As a result its total salary bill grew from £62.3m to £64.7m.