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:

Finweek English Edition - - COVER STORY -

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.

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