Shares in Retail Food Group have surged as much as 19 per cent after the owner of chain Gloria Jeans said customers have continued returning to eating out.
The group, which also owns Crust pizza, Donut King and Michel’s Patisserie stores said it expects full year underlying earnings revised FY20 guidance for $35 million, compared to its pre-coronavirus estimate of between $42 million and $46 million..
By 1400 AEST, shares in the company were 15 per cent higher to 7 cents each, after earlier rising as high as 7.8 cents.
The group said customer numbers have been increasing but were still down 13.76 per cent for the week of June 21 compared to the corresponding week last year.
Executive chairman Peter George said franchisees’ resilience during the pandemic meant only 17 of more than 1,000 stores remained closed.
Overseas, where the group has more than 600 shops, the number of temporarily closed outlets has reduced to 138.
In the same trading update, the group said it has saved about $6 million from a restructure of its wholesale coffee business.