Grand Parade faces a grilling from value-starved shareholders
Investors in the Burger King group want change at the top
Value-starved shareholders at empowerment group Grand Parade Investments could make a meal of a fatter loss in its key food division. On Friday, Grand Parade – which holds the master franchises for global fast food brands Burger King and Dunkin’ Donuts – reported a net loss of R106m from the R1.1bn revenue generated by its food segment in the year to end-June. Grand Parade, which also owns valuable gaming assets in the form of minority stakes in the GrandWest casino in Cape Town and alternative gaming business Sun Slots, trades at a discount of more than 50% to its last stated net asset value. Last week Business Day reported that activist share-holders — comprising asset managers Denker Capital, Excelsia Capital, Kagiso Asset Management, Westbrooke Alternative Asset Management and Rozendal Partners – contended that the Grand Parade board did not have the skills and experience to deliver on the group’s strategic intent, which revolves mainly around rolling out the Burger King franchi...
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