Business

Pain for owner of Steers, Mugg & Bean, and Wimpy in South Africa

Jonathan Hoyle

 ·15 Oct 2026

Famous Brands said it expects its earnings per share to drop by up to 33% in its last interim trading period, as higher fuel prices and interest rates weigh on the fast-food giant.

In a trading statement released on the Stock Exchange News Service (SENS), the company said it had faced a difficult economic environment in the six months ended 31 August 2026.

“Elevated fuel prices arising from the conflict in the Middle East, together with higher interest rates, created a challenging economic environment and adversely affected Group profitability,” the company said.

The group said it expects Headline Earnings Per Share (HEPS) to be between 205 and 252 cents, compared with 236 cents per share one year ago.

This means the expected change is between a 7% increase and a 13% decline for the group’s latest interim period.

Famous Brands is expecting a larger decline in its earnings per share, between 13% and 33%, compared to its 2025 interim period.

The reported EPS is expected to be between 205 cents and 157 cents per share, representing a decrease of between 13% and 33% when compared to the prior comparable period,” the company said.

Famous Brands attributed the decline in HEPS to a R40.9 million goodwill impairment, related to the Retail Group in Botswana.

The impairment followed Famous Brands’ 21% reduction in its stake in the company, from a 51% majority to 30%.

The company said this reduced shareholding was “in line with the Group’s capital-light expansion approach outside South Africa.”

“The disposal will reduce the Group’s direct exposure to operating losses while maintaining ongoing economic participation in the Botswana market,” it said.

It said that Retail Group had underperformed relative to its expectations, but it still saw potential in operating in Botswana.

It said that Retail Group had largely underperformed due to difficult economic conditions in Botswana.

Despite this, Famous Brands said it “continues to see long-term potential in that market, where our brands remain well established and relevant to consumers.”

“The transaction is expected to be completed in the 2027 financial year, subject to the fulfilment of all conditions precedent, including the required regulatory approvals,” it said.

Without the sale of its interest in Retail Group, Famous Brands noted that its earnings per share would have been between 199 cents and 247 cents.

This would have represented a range of -15.7% to 4.7% for its earnings per share, closer to the group’s expected HEPS for the 2026 interim period.

Famous Brands’ expected earnings per share and HEPS