Wagamama's Activist Menu Is Gaining Traction

Activist shareholders look to be setting the menu for Wagamama owner Restaurant Group Plc. Having rebuffed calls for change earlier this year, the company has moved to embrace several key recommendations put forward by funds such as Oasis Management Co. and Irenic Capital Management. With investor pressure unlikely to let up, further changes can be expected that focusTRG more tightly on its prized Asian-style noodle chain — and potentially burnish the company’s appeal as an acquisition target.

TRG has already taken three steps this month that can be seen as concessions to dissenting shareholders: introduced segmental reporting in its interim results; agreed to sell its unprofitable leisure division, including the Frankie & Bennys and Chiquito brands, for the nominal sum of £1 plus a cash contribution of £7.5 million ($9.2 million); and announced the departure of Chairman Ken Hanna, who has said he won’t seek re-election at next year’s annual general meeting for personal reasons. Hanna was the target of activists’ complaints over governance failings; New York-based Irenic, led by Andy Dodge and Elliott Investment Management alumnus Adam Katz, called in July for him to step down.