Grand Parade Investments
Activist investors win as GPI closes Dunkin’ Donuts and Baskin-Robbins in SA
Grand Parade Investments’ food division incurred a R107.7m loss for the year to end-June 2018
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...