As the largest listed operator of fast-food outlets, Famous Brands is an industry bellwether. If its latest trading update is anything to go by, trading in this sector remains robust.
The company, which owns brands like Wimpy, Steers, Debonairs and FishAways, expects headline earnings and earnings per share for the six months to end-August to be 40%-50% up on the comparable period. In 2006 interim earnings were R45,4m (2005: R36,8m) on turnover of R406,3m. The company reports interim results on October 29.
Famous Brands’ growth is not unique, says Bendeta Gordon, whose company, Franchize Directions, produces a report, “The Franchise Factor”, which monitors growth in franchising in SA. “Exploding growth in the quick-service restaurant market has been a function of convenience, the availability of disposable incomes, good service and new store openings.
Also, growth in the consumer market itself is not letting up - interest-rate hikes may curb credit-card spending, but daily spending will be less affected.
www.topcreditcardsadvice.info » Let The Good Times Roll on October 27th, 2007 at 1:01 am
[…] Mark placed an observative post today on Let The Good Times Roll.Here’s a quick excerpt:… of disposable incomes, good service and new store openings. Also, growth in the consumer market itself is not letting up - interest-rate hikes may curb credit-card spending, but daily spending will be less affected. Read More. […]