Finweek English Edition - - SIMON SAYS -

Fa­mous Brands* came out with an­other great set of re­sults with its op­er­at­ing mar­gin hit­ting an im­pres­sive 20.5%. The real se­cret with the com­pany is that while it has many fran­chise op­er­a­tions, the real is­sue is the sup­ply chain, man­u­fac­tur­ing and lo­gis­tics. They form the lifeblood of the fran­chises and this is where any fran­chise op­er­a­tion wants to be. We can start see­ing it form­ing within Taste and to a lesser de­gree in Spur. The trick here is that Fa­mous Brands is fir­ing on all cylin­ders and this is great for share­hold­ers, but it does make the fu­ture tough in that it has to con­tinue pow­er­ing on. Growth doesn’t come from fix­ing prob­lems and any prob­lems that slip in will hurt the stock.

Newspapers in English

Newspapers from South Africa

© PressReader. All rights reserved.