CashNews.co
Nando’s has revealed plans to open new restaurants across the UK after it cut its pre-tax loss during its latest financial year.
The chain, famed for its peri-peri chicken, is to open 14 sites during its current financial year. It has already launched new restaurants in Edinburgh, Newcastle, Doncaster, Taplow, Bognor, Watford, Northampton and Belfast.
In the year to the end of February 2024, Nando’s opened 17 restaurants, with 11 of these in the UK and Ireland.
During that 12-month period, the chain’s revenue increased by 7.5 per cent to £1.37bn while its pre-tax loss was cut from £86.2m to £50.1m. The group reported an operating profit of £59.8m for the year.
In a statement, Nando’s said its sales had surpassed pre-pandemic levels after “strong customer demand”.
Rob Papps, group chief executive of Nando’s, said the economic backdrop remains “uncertain” but it is pushing forward with more investment to drive growth.
Nando’s said the latest growth plans come after a positive first quarter of its 2024-25 financial year, where it was “extremely encouraged by customer demand”.
However, it stressed cost inflation has stayed at “elevated levels”, highlighting it is still seeking to address its costs across the business.
Nando’s said it made £86.6m of capital investment over the year, as it opened more stores and refurbished a number of restaurants.
Papps said: “The 2024 financial year saw Nando’s deliver a good sales performance and a return to pre-pandemic levels of operating profit driven by robust consumer demand for our flame-grilled peri-peri chicken supported by our strong brand and customer proposition.
“Despite the improved sales performance, ongoing cost pressure with energy, labour and food remained very challenging.
Earlier this year, Nando’s named a veteran of the motor finance industry as its new UK&I chief executive.