Famous Brands, no sense in flipping these guys off. The burger and fries guys in the local arena, who can boast a portfolio of Steers, Wimpy, Debonairs, Brazilian, Fish Aways and more recently cyclists favourite weekend hang out Mugg & Bean. These guys, a bunch of the most solid Greek guys you might want to meet have no debt problems. The price has proved recession proof. Trading statement from the group yesterday The group expects that headline earnings per share (HEPS), diluted HEPS and earnings per share (EPS) (calculated on an IFRS basis) for the year ended 28 February 2010, are likely to be between 199 cents per share and 207 cents per share, 25% and 30% higher than the comparable period in 2009.
That places the stock on +15 times earnings at 30.95 ZAR where they closed last evening. Up nearly 8.5 percent. Biggest problem with this stock is that you can almost never get stock without paying up. It might sound like a lot, but the stock trades 5 million Rands a week, with a market cap of nearly three billion Rands you can tell it is tightly held. Between the lowest buyer and highest seller out of ten collective bids and offers there is a twenty percent spread. The top three shareholders own 73 percent of the business. And how do they make most of their money? Food Services, not franchising.