Challenges’ lie ahead for Famous
Quick service restaurant food group Famous Brands has said that maintaining compounds growth at current levels would be ‘challenging’, after reporting a strong set of results for the year ended February.
Fully diluted line earnings per share grew by 38 percent to 78.7 cents from 57 cents previously.
Revenue was up 44 percent to R669.2-million, while operating profit grew 17 percent to R109.4-million.
Attributable profit was 34 percent higher at R70.9-million.
Dividend hike
The company resolved to pay a final dividend of 17 cents per share, up from 10 cents a year earlier.
Famous Brands currently has 1165 restaurants under franchise and its brand portfolio comprises Steers, Wimpy, Debonairs Pizza, FishAways, House of Coffees Coffee Shops, Brazilian Coffee Shops and Whistle Stop.
The company said on Monday that the strong results reflected the combination of favourable macro-economic conditions, positive industry trends and management’s achievements in unlocking value inherent in the business.
During the review period a decision was taken to realign the business model. The group’s two major divisions — franchising and food services — have been compartmentalized into new operating divisions.
The expansion of Famous Brands’ target audience, and the sector as a whole, continues to present the group with new markets, illustrated most recently by the successful opening of several new restaurants in and on the fringes of traditional black residential areas.
International business streamlined
Previously the international component of the franchise business was managed as an independent entity. This structure has subsequently been streamlined and integrated into the group’s brand functions facilitating alignment and integrity of brands locally and internationally.
Subscribe to my RSS feed! Thanks for visiting!
