Fulham Shore (FUL:AIM) 13.75p

Loss to date: 16.7%

Original entry point: Buy at 16.5p, 7 April 2022

Our positive call on Fulham Shore (FUL:AIM) has been buffeted by a backdrop of mounting cost of living pressures but operationally the restaurant operator continues to deliver.

The latest update from the owner of the Franco Manca and The Real Greek chains revealed trading in line with expectations. Notably, the company said cost pressures facing the industry had been mitigated by increasing menu prices, negotiating down rents and strong trading for venues in suburban areas and shopping centres.

Fulham Shore continues its roll-out of new restaurants, with 11 sites on track to open by the end of September.

Shore Capital analyst Greg Johnson commented: ‘So far the uptick in tourism has helped mitigate a slower recovery in restaurants located in office-dense areas with a return to office work a potential positive future delta (i.e. trading boost).

‘Even after menu inflation, both portfolio fascia in our view remain very well positioned, offering consumers little compromise on quality but at a reasonable price.’

SHARES SAYS: We are still positive on the basis Fulham Shore can be a relative winner in the dining-out sector. 

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