Revolution Bars Group reports turnover and profit boost: Revolution Bars Group, the operator of bars trading under the Revolution and Revolución de Cuba brands, has reported sales up 6.9% to £119.5m in the year to 30 June 2016. Like-for-like sales were up 2.3% and are up 1.8% in the 12 weeks since. Adjusted Ebitda increased by £1.0m to £15.6m (2015: £14.6m). Profit before tax was £7.1m (2015: £2.9m), with adjusted profit before tax of £9.2m (2015: £8.3m), an increase of 10.8%. Gross margin improved by 40 bps. Five new sites planned for the year to 30 June 2017, of which three will open in H1. Chief executive Mark McQuater said: “We are delighted to have delivered excellent growth in revenue, margin and profit in our first full year as a listed company. As a result adjusted earnings per share were 14.1% higher. We have achieved this through continually improving the performance of our existing estate and through successfully opening five new bar restaurants. The group is benefitting from its growth in scale and the establishment of its second brand Revolucion de Cuba brand which expanded from five to nine branches. We also opened a Revolution in the year. The new sites are performing well. Reflecting our confidence in our strong operating model and overall debt free balance sheet we will open another five bars in our current year building on the success in 2015. Three new Revolucion de Cuba bars in Harrogate, Reading and Aberdeen are expected to open before Christmas 2016. This financial year has begun well with recent trading robust with like for like sales of 1.8% in the first 12 weeks of the current financial year.” 

The Daily Telegraph – Krispy Kreme abandons float in favour of sale to US parent: Krispy Kreme has abandoned its planned £200m London flotation in favour of a sale to its US parent, The Daily Telegraph has reported. Private equity group Alcuin Capital, which controls the UK operations of the global brand, was preparing to float in a deal being handled by Investec. However, it is understood that the London listing has been ditched after a takeover offer from the American parent in a deal which would bring British operation back in house. Krispy Kreme entered the UK in 2003, when it began selling its doughnuts in Harrods. It has since expanded across Britain with its own stores but also has self-service cabinets in about 500 Tesco supermarkets and motorway service stations. The UK business sells about 50m doughnuts a year and is owned separately by Alcuin after it took control in a 2011 deal which valued the business at about £25m. Alcuin, which also controls Caffe Nero, is not the sole owner though – management and Indigo Capital also hold small stakes putting them in line for a windfall. A sale back to its American parent would bring control of the company under one roof, though Krispy Kreme Doughnuts Inc is currently in the process of being bought itself. JAB Holding Company, the investment company for Germany’s billionaire Reimann family, has agreed a $1.35bn purchase that expands their holdings in the sector, which already include controlling stakes in Jacobs Douwe Egberts, Peet’s Coffee & Tea, Caribou Coffee, Einstein Noah Restaurant Group, Espresso House and Baresso Coffee after a $30bn spending spree.

Greggs reports like-for-likes up 2.8%: Bakery business Greggs has report total sales up 5.6% for the 13 weeks to 1 October with company-managed shop like-for-like sales up 2.8%. A total of 145 refits have been completed year-to-date with 103 new shops opened year-to-date and 58 closures. It reported its ‘Balanced Choice’ and breakfast products popular over the summer months and a new Enfield distribution centre ready to commence operations. The company stated: “Greggs continued to trade in line with our expectations in the third quarter. In the 13 weeks to 1 October 2016 total sales grew by 5.6% (2015: 5.0%) and like-for-like sales in company-managed shops increased by 2.8% (2015: 4.9%), in line with our expectations. Total sales have grown by 5.6% in the year-to-date and like-for-like sales have increased by 3.4%. The popularity of our summer menu including an extended range of Balanced Choice salads and yoghurts supported sales growth in the period. We also saw continued strong growth at breakfast time, helped by our strong coffee offer and value deals. In the year-to-date we have completed 145 shop refurbishments and are on track to refurbish around 200 shops this year. We have also opened 103 new shops, including 41 franchised units predominantly in transport locations. We have closed 58 shops, giving a total of 1,743 shops trading at 4 October (comprising 1,600 of our own shops and 143 franchised units). The pipeline of new shop locations remains good and for the year as a whole we still expect to open 140-150 shops and close circa 70-80, a net increase of around 70. We have now launched our autumn/winter menu which includes new lower-calorie Balanced Choice bakes and soups along with a range of new snacks with gluten-free options. Chipotle Pulled Beef, Fiery Pulled Chicken and Onion Bhaji burritos are exciting new additions to our successful hot sandwich range. We are making good progress with the first stages of our supply chain investment plan. The work to facilitate our new distribution centre in Enfield is now finished and the site will be brought into operation in the coming weeks. As a result we will complete the previously-announced closure of our Twickenham bakery in November. Given trading to date and the outlook, our expectations for the full year outturn remain unchanged. As we look to next year, whilst we anticipate some general industry-wide cost pressures, we expect to make further progress against our strategic plan.”