Famous Brands (FBR) on Monday reported strong sales over the December holiday season, with system wide retail sales (including new restaurants) up 13.3% on the prior comparative period, while like-on-like sales grew 7.8% across the franchise network.
The figures countered concerns that performance would be restrained following on from exceptional turnovers achieved during the World Cup period.
CEO Kevin Hedderwick said there had been some apprehension that December turnovers would be soft post the strong consumer spend experienced during the World Cup.
“However, I am pleased to report that we surpassed our expectations to deliver an overall excellent performance. Without exception, each of the Group's brands improved like-on-like sales.”
20 restaurants were opened during December and the Group remains on track to meet its target of opening 110 new restaurants in the current fiscal year, bringing the total franchise network to 1,883, he said.
Hedderwick noted that these results are a reflection of the Group's portfolio of well established brands which enjoy strong consumer equity and a function of their presence in key strategic sites in shopping malls, airports, coastal resorts and on transient routes nationwide.
“In this regard, Wimpy and Mugg & Bean did particularly well,” noted Hedderwick. “In addition, Debonairs Pizza continues to benefit from the remarkable growth in per capita pizza consumption amongst the emerged market. In fact, this trend is now even beginning to spread to previously un-serviced rural areas. Our Debonairs Pizza Express stores which target emerging market consumers were 49% ahead of budget for the month.”
“The robust performance delivered by the Group's mainstream brands was complemented by very pleasing turnovers achieved by our recently acquired brands. tashas' new Gateway restaurant traded exceptionally vigorously, thereby securing a strong base for the brand in KwaZulu Natal. Notwithstanding aggressive anti-drink/driving campaigns, the Group's pub brands, KEG, McGinty's and O'Hagan's did very well, while Vovo Telo, our niche artisan bakery business produced satisfying results. Famous Brands' chicken offering, Giramundo, is situated in low profile sites which didn't benefit from December holiday trade but still performed in line with management's expectations,” said Hedderwick.
Famous Brands' portfolio includes Steers (527), Wimpy including UK (644), Debonairs Pizza (327), FishAways (114), Mugg & Bean (113), tashas (7), House of Coffees (21), Brazilian/Brazilian Cafe (52), Blacksteer (11), Giramundo (4), KEG (28), McGinty's (5), Vovo Telo (3) and O'Hagan's (22). - I-Net Bridge