Famous Brands slumps after more bad news about Gourmet Burger Kitchen
The share price of Famous Brands fell as much as 12% in early trade on Thursday after the food services franchisor warned investors that it would make impairments of between R241m and R322m in its financial results for the year to February. The share pared losses to end the day 5.79% lower at R114. The company said the impairments would include between R59m and R78m write-offs on property, plant and equipment at its UK-based Gourmet Burger Kitchen. Earnings per share for the period are expected to decline by more than 20% compared with the previous corresponding period. The retailer said it also made provision for property-related expenses for Gourmet Burger Kitchen of between R37m and R49m.
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