South Africans may be feeling the financial pinch, but they’re still willing, and able to spend their hard-earned cash on fast food and eating out.
This is reflected in Famous Brands’ strong year-end results, which show that the franchisor grew revenue for the 14th consecutive year.
On Monday, the group, which owns fast food and beverage brands including Steers, Debonairs, Tasha’s, Mugg & Bean and House of Coffees, reported increased revenue and operating profits that grew by 16% and 19% respectively during the financial year ending 28 February.
Famous Brands opened 258 new restaurants over the year and ran at a “best-ever” 20,5% operating margin, while headline earnings grew to 467 cents per share, up by 15%.
“This strong set of results, delivered in extremely testing trading conditions, is a reflection of robust system-wide sales by the franchised brand portfolio and continued improvement in efficiencies and cost containment in the logistics and manufacturing divisions,” said group CEO Kevin Hedderwick.
Famous Brands has franchise divisions in this country, across Africa and the UK, as well as operations in the Middle East.
“Across the group’s total franchise network system-wide sales (which include new restaurants opened) increased 10%, while like-on-like sales grew 4%. A record number of 258 new restaurants were opened across the brand portfolio, bringing the total restaurant network to 2 545. During the period 160 restaurants were revamped,” Hedderwick said.
“Furthermore, our ambition is to expand the group’s presence in the table-service evening-dining environment, which affords strong growth opportunities for the business. Supplementing an internal focus on existing brands with offerings relevant to this market, management will also continue to explore suitable acquisition opportunities related specifically to this dining occasion.”
The group plans to up its Africa expansion strategy, planning to open 35 new restaurants on the continent, including a first-time entry into Ghana.
Hedderwick does, however, warn that weak economic growth and political and labour uncertainty will continue to put pressure on consumer spending.
“In this context, growth in the forthcoming period is expected to be muted,” he said.
Additional reporting: News24Wire
This is reflected in Famous Brands’ strong year-end results, which show that the franchisor grew revenue for the 14th consecutive year.
On Monday, the group, which owns fast food and beverage brands including Steers, Debonairs, Tasha’s, Mugg & Bean and House of Coffees, reported increased revenue and operating profits that grew by 16% and 19% respectively during the financial year ending 28 February.
Famous Brands opened 258 new restaurants over the year and ran at a “best-ever” 20,5% operating margin, while headline earnings grew to 467 cents per share, up by 15%.
“This strong set of results, delivered in extremely testing trading conditions, is a reflection of robust system-wide sales by the franchised brand portfolio and continued improvement in efficiencies and cost containment in the logistics and manufacturing divisions,” said group CEO Kevin Hedderwick.
Famous Brands has franchise divisions in this country, across Africa and the UK, as well as operations in the Middle East.
“Across the group’s total franchise network system-wide sales (which include new restaurants opened) increased 10%, while like-on-like sales grew 4%. A record number of 258 new restaurants were opened across the brand portfolio, bringing the total restaurant network to 2 545. During the period 160 restaurants were revamped,” Hedderwick said.
“Furthermore, our ambition is to expand the group’s presence in the table-service evening-dining environment, which affords strong growth opportunities for the business. Supplementing an internal focus on existing brands with offerings relevant to this market, management will also continue to explore suitable acquisition opportunities related specifically to this dining occasion.”
The group plans to up its Africa expansion strategy, planning to open 35 new restaurants on the continent, including a first-time entry into Ghana.
Hedderwick does, however, warn that weak economic growth and political and labour uncertainty will continue to put pressure on consumer spending.
“In this context, growth in the forthcoming period is expected to be muted,” he said.
Additional reporting: News24Wire
