The un-ending tale of Grand Parade’s disposal of Burger King

SOUTH AFRICA – Grand Parade Investments (GPI), the master franchise holder for Burger King in South Africa is urgently negotiating the sale of Burger King SA after Covid-19 devalued it by about R100m (US$6.8m). This follows after GPI has encountered another snag in its almost year-long effort to dispose of the food service business. The Cape Town-based investment holding company, which has minority stakes in Sunwest International casino and restaurant chain Spur, said in a Sens statement that the offer it had received to offload majority shares it holds in…

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Covid-19 shaves off about US$6m from Burger King SA sale deal by Grand Parade

SOUTH AFRICA – Grand Parade Investments (GPI), the master franchise holder for Burger King in South Africa has announced the renegotiation of its terms of sale for its interest in Burger King South Africa (BKSA) and Grand Foods Meat Plant (GFMP) to private equity group, Emerging Capital Partners (ECP). Under the revised offer, the enterprise value for the transactions has fallen to R593 million (US$35.3m), split into R570 million (US$33.9m) for Burger King SA and R23 million (US$1.3m) for Grand Foods Meat Plant, reports Fin 24. This represents a 15%…

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COVID-19 pandemic causes a setback on Grand Parade disposal of Burger King

SOUTH AFRICA – Grand Parade Investments, which recently announced the sale of its SA Burger King licence, has revealed that the terms of the sale of the food franchise was being renegotiated due to the COVID-19 pandemic. In a shareholder statement the group stated, “as a result of the Covid-19 pandemic, the parties are renegotiating the terms and conditions of the disposal,” and that shareholders will be updated if renegotiations are successful without going into further detail. Prior to the nationwide lockdown, Burger King reported a challenging operating environment, but…

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Grand Parade Investments reports revenue growth despite divesting from food business

SOUTH AFRICA – Grand Parade Investments, which recently announced the sale of its SA Burger King licence has attributed the exit from its restaurant interests to reducing its debt and improving profits in its half year to end-December. GPI has reported a revenue growth of 19% to R844.4 million (US$47.8m) with the group’s gross profit increasing by 21% to R405.1 million (US$22.9m). Burger King had in prior years counting mounting losses. However, the food and gaming company’s results for the six months ended 31 December 2019 showed improved results for…

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SA’s Grand Parade to sell Burger King franchise to Emerging Capital Partners

SOUTH AFRICA – Grand Parade Investments (GPI), the master franchise holder for Burger King in South Africa is set to sell its 95.36 percent stake in Burger King franchise and all of Grand Foods Meat Plant, a GPI owned burger patties production plant to ECP Africa Fund for R697 million (US$46.53 million). The deal is a category 1 transaction and is subject to regulatory approval and several conditions precedent. Grand Parade will maintain a minority interest in Burger King in line with its strategy to become a pure investment company.…

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Spur Corporation reports 7.2% growth in full-year sales to US$535.12m

SOUTH AFRICA – Spur Corporation, a South Africa based fast–food chains operator, reported an overall 7.2 percent growth in sales to US$535.12 million (R7.6 billion) in the year to end-June. The group’s performance, whose brands include RocoMamas, Pizza Pasta and Panarottis, was boosted by a robust growth in the last two quarters of the period under review with overall growth driven by the John Dory’s and RocoMamas brands. An IOL Business report indicates that Spur only managed a 1.3 percent growth during its second quarter while during the third and…

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Grand Parade to sell 10% stake in Spur Corporation

SOUTH AFRICA – Grand Parade Investments (GPI), a South African restaurant and gaming group, has said it will sell its 10% stake in Spur Corporation back to the steakhouse company, freeing it up to focus on its Burger King franchise. GPI had acquired 10.8-million shares. Equivalent to 10% stake from Spur in 2014 for US$20.92 million (R294.7m) in a deal that included a five-year “lock-in period” to end-October 2019. However, the company has said it would dispose of its shares, which would be repurchased by Spur Corp for US$18.49 million…

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Grand Parade Investment’s Hassen Adams to step down as chairman

SOUTH AFRICA – Grand Parade Investments (GPI), a South African restaurant and gaming group, has announced that Dr Hassen Adams will step down as executive chairman of the company effective 30th June this year. The group, which holds master franchise for Burger King outlets in the country, said Adams will assume the role of non-executive chairman from July, reports IOL Business. The co-founder of Grand Parade Investments Limited is also executive chairman of Burger King South Africa and non-executive chairman of SunWest International. In April this year, Adams reduced his…

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Grand Parade to roll out more Burger King outlets to boost revenues

SOUTH AFRICA – Grand Parade Investment (GPI), the South Africa franchise operator of the Burger King has unveiled plans of opening 15 new Burger King outlets a year over the next three years across the country as it seeks to grow its revenues. According to a report by Business Report, GPI revealed that the expansion programme would be focused on drive-thru restaurants as opposed to online and/or food court restaurants. “The future expansion of Burger King will further improve bottom line profitability and allow volume discounts to be passed to…

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South Africa’s Grand Parade exits Dunkin Donuts and Baskin Robins brands

SOUTH AFRICA – Grand Parade Investments (GPI), the Southern African franchise owner of US fast food chains Dunkin’ Donuts and Baskin-Robbins, announced the closure of the two brands operated outlets after the businesses continued to record poor performance. The group said it filed an application for voluntary liquidation of the two US chains after failing to sell them. Mohsin Tajbhai, acting Chief Executive Officer at GPI, said that both fast food chains had continued to record underperformance whose effect had spilled over into the group’s cash resources. “Since June 2018…

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