Famous Brands is Africa’s leading food services franchisor. The company operates restaurants across South Africa, the Southern African Development Community (SADC), the Rest of Africa and the Middle East (AME), and the United Kingdom (UK). Its vertically integrated business model comprises four pillars: Brands, Manufacturing, Logistics, and Retail.
The Group’s portfolio includes 15 iconic restaurant brands. These appeal to consumers across income levels, demographics, meal preferences, and value propositions. The portfolio is segmented into Leading Brands, which target mainstream consumers, and Signature Brands, which focus on niche markets.
Leading Brands are further categorised as Quick Service Restaurants (QSR) and Casual Dining Restaurants (CDR). QSR brands prioritise takeaway and delivery with smaller sit-down areas, while CDR brands provide full-service, sit-down experiences. Signature Brands deliver bespoke offerings.
The Group’s Supply Chain consists of Manufacturing, Logistics, and Retail operations. These divisions support franchise partners with efficient supply, price certainty, product innovation, and margin management. Retail operations sell products to major national retailers.
Restaurant network
Famous Brands operates 3,008 restaurants across 20 countries.
Restaurants per region:
- South Africa: 2,666
- SADC: 227
- AME: 57
- UK: 58
Operating context
South Africa’s economic growth increased to 0.8% in Q2 2025, rebounding from 0.1% in Q1. Positive developments include the cessation of load shedding, improvements to the national logistics network, and relative political stability. Additionally, traffic has increased due to return-to-office mandates, which has boosted restaurant sales.
Consumer spending remains constrained by high unemployment, household indebtedness, and elevated inflation over recent years. Competition for consumer spending is intense, especially in the QSR category. Brands are investing in campaigns to promote core categories at competitive prices. Consumers are seeking value in a highly competitive environment, including competition from rapid delivery offerings by supermarket retailers.
Financial performance
The Group demonstrated strong momentum in financial performance. Revenue increased by 5.6% to R4.2 billion (2024: R4.0 billion). Operating profit increased by 5.8% to R393 million (2024: R371 million). The operating profit margin was 9.3% (2024: 9.2%). Headline earnings per share (HEPS) rose by 8.0% to 236 cents (2024: 218 cents). Basic earnings per share (BEPS) increased by 6.8% to 236 cents (2024: 221 cents).
Sustained consumer preference for the South African Leading Brands portfolio, particularly QSR brands, contributed to robust revenue growth. This, in turn, strengthened the performance of the Manufacturing and Logistics divisions. Strong growth was also observed in the brand footprint.
The Group pursued operational efficiencies and cost containment initiatives. This included opening a cold storage facility in June 2025, completed on time and within budget. The new facility will increase capacity, reduce transport costs, and generate savings through more energy-efficient refrigeration technologies.
Key financial highlights (six months ended 31 August)
| Feature | Unit | 2025 | 2024 | % Change |
|---|---|---|---|---|
| Revenue | R’m | 4,240 | 4,017 | 5.6 |
| Operating profit | R’m | 393 | 371 | 5.8 |
| Operating profit margin | % | 9.3 | 9.2 | – |
| BEPS | Cents | 236 | 221 | 6.8 |
| HEPS | Cents | 236 | 218 | 8.0 |
Statement of cash flows
Cash generated by operations was R472 million (2024: R498 million), a 5.3% decrease. Net cash outflow utilised in investing activities increased to R142 million (2024: R73 million). Net cash outflow from financing activities decreased to R65 million (2024: R140 million). The cash realisation rate was 96% (2024: 106%).
Statement of financial position
Cash and cash equivalents increased to R331 million (2024: R324 million), up 2.0%. Net debt decreased to R1,104 million (2024: R1,134 million). The net debt-to-equity ratio was 0.84 (2024: 1.03). Total equity rose to R1,317 million (2024: R1,099 million), a 20% increase. Return on equity (ROE) was 41% (2024: 44%), and return on capital employed (ROCE) was 34% (2024: 32%).
Capital allocation
Gearing
As of 31 August 2025, total borrowings were R1.1 billion (2024: R1.2 billion). During the review period, the Group repaid R62 million of borrowings and raised a similar amount to fund the cold storage facility. Finance costs on borrowings decreased by 23% compared to the prior period, due to debt reduction and a 50 basis point interest rate cut.
Capital expenditure
Capital expenditure totalled R140 million (2024: R91 million), allocated in line with the Group’s strategy.
Dividend
The Board declared an interim dividend of 162 cents per share (2024: 150 cents per share), amounting to a total of R162 million.
Dividend dates are as follows:
- Declaration date: Wednesday, 22 October 2025
- Last day to trade cum dividend: Monday, 15 December 2025
- Ex-dividend date: Wednesday, 17 December 2025
- Record date: Friday, 19 December 2025
- Payment date: Monday, 22 December 2025
Shareholders recorded in the Company register on the record date are entitled to the dividend. The local dividend tax rate is 20%. The net local dividend amount is 129.60 cents per share for taxable shareholders and 162 cents per share for exempt shareholders. The issued share capital of Famous Brands is 100,202,284 ordinary shares. The Group’s tax reference number is 9208085846.
Operational review
Brands
Revenue in South Africa increased by 6.3% to R599 million (2024: R563 million). Operating profit declined slightly by 0.4% to R231 million (2024: R232 million). System-wide sales improved by 5.5%, while like-for-like sales increased by 2.4%.
Leading Brands – South Africa
System-wide sales for Leading Brands grew by 6.0%, and like-for-like sales increased by 2.6%. Restaurant sales benefited from an uptick in local tourism and increased traffic due to return-to-office mandates. QSR brands performed strongly, driven by competitive value offerings, successful promotions, and prudent cost management.
The brand footprint expanded, with 27.8% of new restaurants allocated to existing franchise partners. The Group increased smaller restaurant formats and drive-thrus to meet consumer demand for convenience. Franchise partners demonstrated confidence through revamp activity and reinvestment.
Signature Brands – South Africa
The Signature Brands portfolio delivered softer results than expected. This was driven by lower consumer demand for premium dining. Like-for-like sales declined by 0.6%, and system-wide sales decreased by 0.4%. The operating loss margin was 7.0% (2024: 6.7%).
SADC
Revenue in the SADC region increased by 2.7% to R224 million (2024: R218 million). Operating profit declined by 11.8% to R24 million (2024: R28 million), with the margin at 10.9% (2024: 12.7%). Botswana’s system-wide sales decreased by 2.3%, and like-for-like sales fell by 5.5%. Zambia’s system-wide sales were 4.8% higher, while like-for-like sales declined by 3.2%.
AME
Revenue declined by 5.4% to R33 million (2024: R35 million). Several markets faced tough trading conditions and high inflation. The Group’s brand presence remained sub-scale. Operating loss was R19 million (2024: R22 million), with a margin of 57.2% (2024: 63.4%).
UK
The UK restaurant industry faced cost pressures, cautious consumers, and economic uncertainty, constraining sales. Revenue declined by 5.7% to R65 million (2024: R69 million). Operating profit fell to R1 million (2024: R3 million), with a margin of 2.2% (2024: 4.6%).
Outlook
The Group remains cautiously optimistic for the remainder of the 2026 financial year. Modest but positive growth is expected in South Africa, underpinned by recovering domestic demand, lower inflation and interest rates, and a more stable energy supply.
Competitive intensity, particularly from value-driven offerings, is expected to rise. The Group will maintain strategic flexibility to protect market share and profitability. This involves agility in menu options, promotions, and loyalty programmes. The new consumer engagement platform will provide personalised offers to customers. The restaurant pipeline is healthy, with strong demand for both Leading and Signature Brands. The dual-portfolio principle continues to guide resource allocation.
Expansion in the SADC region will target specific markets. The Group remains cautious in AME markets and aims to reduce profitability drag from AME and Signature Brands portfolios.
Manufacturing, logistics and retail
The Manufacturing division is implementing technology, processes, and resource planning to increase capacity, improve yields, and reduce waste. It will also grow revenue by expanding product ranges for franchise partners and retail markets.
The Logistics division will enhance efficiency through fleet mix optimisation, route planning, in-house retail frozen distribution, and distribution of the Coca-Cola beverage basket across eight provinces. A warehouse management system will support better planning and decision-making.
Retail performance is expected to improve in the remainder of the 2026 financial year. A retail marketing strategy aims to secure new product listings and promote ranges to consumers.
In conclusion
The Group maintains confidence in its ability to innovate and grow, supported by dedicated franchise partners. Profitability will benefit from ongoing cost containment and efficiency initiatives. The Group is committed to improving shareholder returns, reducing legacy debt, and supporting franchise partners.
