Famous Brands receives approval for secondary listing on A2X Markets

SOUTH AFRICA – Famous Brands, a branded food services business in South Africa has announced that its ordinary shares will be listed and traded on alternate exchange, A2X Markets on 30 November 2020. The restaurant franchisor with a market capitalization of R4.4 billion (US$290 million), will retain its primary listing on the Johannesburg Stock Exchange (JSE) and its issued share capital will be unaffected by its secondary listing on A2X. A2X is a licensed stock exchange authorised to provide a secondary listing venue for companies. It is regulated by the…

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Famous Brands nearly halves its half year revenue earning US$122m

SOUTH AFRICA – South African restaurant franchisor, Famous Brands has reported a 48% decline in revenue in the interim period to R2 billion (US$122m) from R3.86 billion (US$235m) registered in 2019. This is a clear indication of the significant impact the stringent Covid-19-induced lockdown regulations had on the business. Its operating loss before non-operational items came to R109.8 million (US$6.7m) down 129% compared to profit of R376.2 million (US$23m) in the prior comparable period. The half year results of the company show a headline earning share loss of 240 cents.…

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Famous brands disposes its controlling stake in boutique café brand tashas

SOUTH AFRICA – Famous Brands, South Africa’s leading quick service and casual dining restaurant franchisor, has announced that it has sold its controlling 51% stake in boutique café brand, tashas, to the founding Sideris family, who hold the remaining 49%. tashas was founded in 2005 by Natasha Sideris, partnered by Savva Sideris, her brother. In 2008 Famous Brands acquired a 51% stake in the business, which comprised two restaurants. As at 30 July 2020, the network comprises 18 restaurants in South Africa and eight in the United Arab Emirates. “The…

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Famous Brands unveils road map to sustain improved performance

SOUTH AFRICA – South African restaurant franchisor, Famous Brands has rolled out a three-year strategic roadmap following an improved operational performance for the year to end February. The owner of Steers, Wimpy and Debonairs Pizza reported a 6.4% rise in system-wide sales across all restaurants in SA, while like-for-like sales grew by 2.9%. Operations in other African countries and the Middle East recorded system-wide sales growth of 4.1% in Rand terms which the group termed as, “a pleasing return on investments made over recent years.” During the period under review,…

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Food Industry companies facing tough economic conditions projecting drop in earnings

KENYA – The COVID-19 pandemic lockdown, movement restrictions, temporary ban of some products and services experienced in different parts of the world has resulted to companies face a tough economic situation and harsh operating environments resulting to deeming revenues. East Africa Breweries Limited (EABL) having operations in Kenya, Uganda and Tanzania has issued a statement warning of a decline in profit after tax of approximately 25% for the financial year ending 30 June 2020 versus prior year. “The COVID-19 global pandemic and the subsequent response measures taken across the region…

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Famous Brands cuts funding to its loss-making UK fast food business

SOUTH AFRICA – Famous Brands, South African restaurant franchisor will cut funding to its long-time struggling British fast food operation, Gourmet Burger Kitchen, due to deterioration in sales caused by the coronavirus pandemic. The SA owner of Mugg & Bean, Steers and Wimpy bought GBK for more than R2.3bn (US$122.6m) in 2016 as part of its strategy to reduce its dependence on South African consumers, who were under pressure, over the past few years. However, the plan proved costly as the burger chain took strain as a result of economic…

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Famous Brands reports 6.4% increase in sales boosted by signature brands

SOUTH AFRICA – Famous Brands, South African restaurant franchisor has reported a 6.4% rise in systemwide sales across all restaurants in SA in its year ended February 2020, while like-for-like sales grew by 2.9%. The owner of Steers, Wimpy and Debonairs Pizza, said on the group’s trading update that the sales growth met expectations even as it battled with the effects of load-shedding and SA’s deteriorating economy. The group’s signature brands which include House of Coffees and Turn ’n Tender saw growth in sales by 10.6% while like-for-like sales declined…

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Famous Brands’ non-executive Director sells off shares worth US$3m

SOUTH AFRICA – The non-executive Director and former CEO of Famous Brands, John Halamandres has disposed more than 500,000 ordinary shares he was holding of the company valued at almost R45m (US$3m) in over five months. Mr. Halamandres has been undertaking sell off to raise money to finance a loan with a financial institution, whose settlement is expected to take place on November 13, 2019. The value of the loan has not been provided. Halamandres is a founding member of Famous Brands which owns food franchises Steers, Wimpy, Debonairs and…

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Famous Brands earnings fall by 15% despite improvements in its UK Business

SOUTH AFRICA – Famous Brands, South African restaurant franchisor has reported a 15% fall in headline earnings, while revenue remained flat at around R3.6bn (US$246m) in the six months to end-August. According to its half year interim results, its SA revenue grew by 1%, while in the UK – which contributes 20% of the group’s revenue declined after the company closed 24 restaurants. Famous Brands, which owns Wimpy in the UK, bought the UK chain Gourmet Burger Kitchen (GBK) for R2.1 billion (US$143m) in 2016. GBK stores started under-performing and…

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Famous Brands to take over Kenyan local franchises Steers, Debonairs

KENYA – South African based restaurant franchisor, Famous Brands is set to take direct control over seven outlets of Steers and Debonairs in Kenya previously run by local franchisee Hoggers. Famous Brands is set to run the business through its local subsidiary FB franchising Kenya, once the regulator grants the parties a go-ahead to undertake the transaction of which the buyer is set to use its cash reserves. The intention is to revamp the existing restaurants as a priority and in time, expand within the market as trading conditions permit.…

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