At a Glance
- Revenue rose 5.6% to $240.6 million, supported by stronger South African sales and factory output.
- Manufacturing profit surged 23.6% as tighter cost control boosted margins across core operations.
- Famous Brands raised dividend 8%, reflecting confidence in steady growth and stronger cash position.
Famous Brands Ltd., Africa’s largest restaurant franchisor and owner of Steers, Wimpy, and Debonairs Pizza, reported strong half-year results as steady South African sales and stronger factory output lifted performance.
For the six months ended Aug. 31, 2025, revenue rose 5.6 percent to R4.2 billion ($241.18 million), while operating profit climbed 5.8 percent to R393 million ($22.6 million). The Johannesburg-based group said improved supply chain efficiency and higher production in its manufacturing arm helped offset cost pressures.
Home market supports overall growth
Sales in South Africa showed modest improvement as fewer power cuts and a gradual return to office routines boosted foot traffic. Even so, high prices, weak job numbers, and limited disposable income continued to weigh on household spending.
Revenue from its local operations rose 6.3 percent to R599 million ($34.4 million), supported by stronger demand for its quick-service chains. System-wide sales increased 5.5 percent, with same-store growth at 2.4 percent.
The Leading Brands unit, which includes Steers, Wimpy, and Debonairs, posted a 6 percent gain in system-wide sales, helped by promotions and value offerings that drew customers back. Compact store formats and drive-thru outlets also performed well as consumers favored convenience. Its Signature Brands division, which runs higher-end restaurants, reported a 7 percent operating loss as middle- and upper-income diners cut back on discretionary spending.
Manufacturing gains cushion higher costs
The group’s integrated model, spanning restaurants, manufacturing, logistics, and retail, helped offset cost pressure.
Manufacturing revenue climbed 10.4 percent to R1.8 billion ($103.38 million), driven by higher production of cheese, sauces, and meat.
Profit from the segment jumped 23.6 percent to R185 million ($10.63 million), supported by better yields and tighter cost control. “We’ll keep investing in digital tools, expanding our store network, and improving supply chain efficiency,” Chief Executive Darren Hele said. “Our focus remains on innovation, cost control, and supporting our franchise partners to deliver long-term value.”
The logistics arm lifted revenue by 7.4 percent to R2.7 billion ($155.07 million), though operating profit slipped 14.8 percent to R29 million ($1.67 million) on higher transport and fuel costs. Retail sales were flat at R171 million ($9.82 million), but the company expects new product rollouts to revive growth in the second half.
Strong balance sheet and dividend increase
Cash holdings rose 2 percent to R331 million ($19.01 million), while gearing improved to 0.84 times from 1.03 a year earlier. Shareholders’ equity increased 20 percent to R1.32 billion ($75.81 million), with return on equity at 41 percent, among the highest in Africa’s consumer space.
Famous Brands spent R140 million ($8.04 million) on capital projects, including a new cold storage facility completed in June to expand capacity and cut logistics costs.
The board declared an interim dividend of R1.62 ($0.093)per share, up 8 percent from last year, bringing total payout to R162 million ($9.3 million).
The Johannesburg-based restaurant group expects moderate growth for the rest of the 2026 fiscal year, supported by lower inflation and a steadier power supply. The group operates 3,008 restaurants in 20 countries, including 2,666 in South Africa, 227 in the Southern African region, 57 in other African and Middle Eastern markets, and 58 in the U.K.
