Activist investors win as GPI closes Dunkin’ Donuts and Baskin-Robbins in SA

Grand Parade Investments’ (GPI) announcement that it is exiting Dunkin’ Donuts and Baskin-Robbins could be seen as a victory for activist investors who have long called for the closure of the struggling SA outlets of the US chains. Institutional shareholders Denker Capital, Excelsia Capital, Kagiso Asset Management, Westbrooke Alternative Asset Management and Rozendal Partners, which collectively hold 12.5% in GPI, banded together in 2018 and called for the gaming and fast-food empowerment group to let go of the brands. Since launching the popular US doughnut and ice cream brands in SA three years ago, GPI, which also runs Burger King in SA, has been struggling to get its fast-food operations to perform. Dunkin’ and Baskin-Robbins, with collectively 16 outlets in the Western Cape, have incurred cumulative losses of R96m since 2016. GPI’s food division incurred a R107.7m loss for the year to end-June 2018. The only positive contribution to this division was the R608,000 it received i...

Subscribe now to unlock this article.

Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).

There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.

Subscribe Sign in

Cancel anytime.

Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.

Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.

SIGN UP

SIGN IN

Please read our Comment Policy before commenting.