Shares digital

Restaurant Group (RTN) 113.8p

Frankie & Benny’s owner the Restaurant Group struggled to produce just 1% like-for-like sales growth in Q4, sending its shares down 19% to 140.8p. (Read the full story:

www.sharesmagazine.com/node/2807)

Shares says: No one can afford to eat out and they have huge problems with food price inflation. On top of this shares currently have strong negative momentum. SELL

FT says: The restaurant sector has come under pressure as concerns about the outlook for the UK economy have intensified. The shares look cheap but the sector is risky.

The Times says: Aside from consumers cutting back on spending, restaurant chains also face pressure from food price inflation.

The City says: The group plans to open new sites in 2008 at a similar rate to 2007. While 2008 may well be more challenging, we feel that the group has been oversold.