African outlets boost Famous Brands
Johannesburg - Quick service restaurant franchise group Famous Brands [JSE:FBR] on Monday said system-wide turnover including new restaurants grew 10% for the three months commencing October and ending December 2011.
Like-on-like revenue increased 6.8% across the franchise network for the period under review.
"This is a very pleasing performance given the prevailing subdued trading conditions, and bearing in mind that many of Famous Brands' well-established mainstream brands have immense restaurant networks, so growth is off a high base," said CEO Kevin Hedderwick.
"Trading patterns over the December holiday period differed somewhat from previous years, largely as a result of continued financial pressure on consumers," he said.
The group's premium end offering, tashas, continued to show impressive growth.
During the period, 60 restaurants were opened across the company's network in SA and a further 18 in Africa, the latter equating to 23% of new restaurants opened, and a reflection of Famous Brands' success in gaining traction in the region.
Particularly strong growth was experienced in Mauritius, Zambia and Nigeria.
Of the group's brand portfolio, strongest growth in new restaurant numbers was achieved by Debonairs Pizza and Mugg & Bean.
In addition, the integration of Milky Lane's soft serve business was completed during the period, driving revenue up strongly at the group's ice cream manufacturing plant.