Marc Hasenfuss Investors Monthly editor, writer & columnist

Grand Parade Investments (GPI) is not having a royal old time with its Burger King master franchise for SA. In fact, it appears it has bitten off far more than it can chew. The bottom line in the six months to end-September was that the iconic burger brand lost R9.5m off its base of 90 restaurants, most of which are corporate-owned outlets. I’m sure GPI — certainly at the time of signing the Burger King deal in 2012 — would have expected to be serving up meaningful profits off a 90-strong store base by now. What is interesting is that the Burger King chain only grew by a net three outlets in the interim period — which hopefully speaks to efforts to secure great sites and fatten margins. The interim record shows Burger King’s total revenue for the year increased by a hefty 35% to R495m on the back of new restaurant growth and, more importantly, an increase in the average revenue per store (ARS). ARS increased by 8.1% to just over R1m during this period, and GPI believes this is indic...

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