Burger King may hold key
Burger King pays off for Grand Parade
Gradual improvement in profitability, cautious rollout and management, and good prospects brighten Grand Parade Investments outlook
The share price of empowerment counter Grand Parade Investments (GPI) had, at the time of writing, risen about 10% since the recent release of interim results to end-December. The spurt might be attributed not only to GPI’s concerted effort to present a clear break-down on intrinsic net asset value (NAV), but also to the fact that the key investment in fast-food brand Burger King is slowly turning profitable and, perhaps more importantly, that the company has started buying back its own shares in meaningful tranches. In the interim period GPI bought back 24.5m of its own shares for R89.4m (at an average price of R3.65/share), and then bought back another 8.9m shares for R32m (at an average price of R3.55/share) after the close of the interim accounts.