The Restaurant Group' stock is soaring since the beginning of the year. We expect this sharp bullish trend to continue for a while.

The company benefited from the crisis context. Indeed, whereas many restaurants implemented a discount strategy, the restaurant group has preferred to have a different approach : the consistency of services and quality offered.
Thanks to that strategy, the firm has been able to reach the highest margin level of the sector in the U.K (pizzerias excluded) (net margin of 9% ; operational margin of 17.9% in 2012).

Graphically, the trend is bullish on all time scale, with well oriented moving averages (daily and weekly). Prices has just bounced on the GBp 517 support, corresponding to the 50-day moving average. The latter should allow the share to rebound towards GBp 560.

Thus, a long position can be opened at the current price with GBp 560 as first bullish objective. A stop loss must be placed below the moving average.