Restaurant Group bets on ex-Paddy Power boss
The embattled UK-based Restaurant Group is betting that former Paddy Power chief executive Andy McCue will be able to revive its flagging fortunes.
Restaurant Group, which operates over 500 restaurants and pub restaurants across the UK, has ousted incumbent chief executive Danny Breithaupt amid a raft of trading warnings.
Andy McCue will take over the role in September.
He declined to comment yesterday about his new position when contacted by the Irish Independent.
Mr McCue was chief executive of Paddy Power until its €10bn merger earlier this year with Betfair. He was briefly chief operating officer of the enlarged group, whose chief executive is Breon Corcoran. Mr Corcoran was the boss at Betfair. Mr McCue formally left Paddy Power in April.
Shares in Restaurant Group soared over 12pc on news of his appointment.
He has a significant task ahead at stabilising the group.
In April, shares in Restaurant Group plummeted 19pc as it issued the latest in a string of warnings over trading conditions, and cautioned that its full-year profit could be as low as £74m versus the expected £89m.
The company has blamed cautious consumers who are wary about the economy, as well as increased competition for its woes.
Last year, its revenue rose 7.9pc to £685.4m, while it posted a pre-tax profit of £86.8m, which was 11.2pc higher. Like-for-like sales rose just 1.5pc, however.
Mr Breithaupt was paid a total of £1.6m (€1.8m) at the Restaurant Group last year. That included a basic salary of £480,000 and £495,000 bonus.
He also received a £111,000 pension contribution, while the value of his long-term incentive plan contribution last year was £503,000.
Mr McCue was paid a basic salary of £640,000 and a director's fee of €90,000 a year in his role at Paddy Power Betfair. He was also entitled to bonuses.
Mr McCue assumed the chief executive role at Paddy Power in January 2015, having joined the company in 2006.