Restaurant Group Plc ousted Chief Executive Officer Danny Breithaupt, bringing in the former head of bookmaker Paddy Power Plc to replace him after a year of turmoil at the United Kingdom owner of Frankie & Benny’s eateries.
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Pub and restaurant chain operator The Restaurant Group announced on Friday that after 15 years with the company, and two years as CEO, Danny Breithaupt will step down from the board and leave the company with immediate effect.
This was confirmed by the company just a few hours later.
Restaurant Group said that Mr. McCue was recently the chief executive at Paddy Power PLC, which is now called Paddy Power Betfair PLC (PPB.DB), where he implemented a new growth strategy.
“Danny has provided strong operational leadership over the years”, said Restaurant Group chairman Debbie Hewitt.
Responding to the change of leadership, its shares topped the FTSE 250 leader board in late morning trading, up 12 per cent, or 49.1p to 425.9p.
Restaurant Group said in April that it was launching a review of its operating strategy, including its property portfolio, programme of site openings, brand positioning and overheads.
She said she was also pleased to welcome McCue to the company.
It added that it would update the City on the review when it reports interim results later this month, although that is now likely to be delayed following the appointment of Mr Breithaupt’s successor.
Chief finance officer Stephen Critoph left the company abruptly as it slashed profit forecasts at the end of April, but at the time investors were pushing for Mr Breithaupt to go instead.
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Despite a partial recovery, the shares still lost nearly half their value over the last 12 months.
