HOW TO SPEND R1m
If we were an investor with R1m to put into a franchise but wanted to go the “passive” route, here is how we would trade it:
Spar – you get a quality retailer with ‘franchise’ like qualities and a dividend yield.
Grand Parade Investments – the share trades at a steep discount to its underlying assets, and you get the growth of emerging markets at a significantly better price and Burger King as a listed asset.
Taste Holdings – in the past, Famous Brands has been our preferred player, but Taste is now looking cheaper than its bigger rival. Yum! Brands – this global giant consistently has grown its dividend, has access to big emerging markets like China and developed markets like the US. The bonus is that you are paying the same multiple as you would be for Famous Brands.
Starbucks Corporation – we at Finweek drink a lot of coffee but it wasn’t until the asset manager Vestact tipped us to this one that we realised its potential. It is growing margins across its brands and it is an innovative company.