MORE GREAT RESULTS
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.