Franchised restaurant turnover grew by 11.5% to R10.6 billion, and by 7.4% excluding the sales from the Doppio Collection acquisition. Revenue rose by 14.1% to R3.5 billion supported by stronger franchised restaurant turnover, increased sales from the manufacturing and distribution division and higher sales from retail company stores.

Diluted headline earnings per share grew by 9.4% to 284 cents and the total dividend was increased by 10.9% to 213 cents per share. The return on equity was an excellent 29.6%, with unrestricted cash on hand of R366 million.

Group CEO Val Nichas said the volatile trading patterns were a feature of the past year. “After strong trading in the first quarter, the second quarter was marked by slower trading until our restaurant sales were boosted by robust trading in December 2023. Slower trading volumes continued in the second six months, although we experienced a positive upturn in June 2024 during the mid-year school holidays.”

The trading performance in South Africa saw the Spur Steak Ranches brand increase restaurant sales by 7.0%, accounting for 66% of total SA sales. Panarottis increased restaurant sales by 10.8% and RocoMamas by 7.8%. International franchised restaurant sales increased by 10.5%, comprising 10% of total group restaurant sales.

The group’s acquisition of the 60% interest in the Doppio Collection, effective from 1 December 2023, contributed restaurant sales of R394 million. The acquisition included 27 franchised and 10 company-owned restaurants across the Doppio Zero, Piza e Vino and Modern Tailors brands as well as a bakery and central supply business.

Nichas said the 57-year-old Spur Steak Ranches brand underwent an exciting creative transformation during the year, with a new contemporary brand icon designed to reflect the vibrance and diversity of the families we serve. The refreshed brand identity has so far been incorporated in 19 Spur restaurants which are all reporting very pleasing turnover growth, she said.

The repositioning of Panarottis has been a resounding success and 38% of the local restaurants are now trading in the new-look restaurant and brand image. The first new-look John Dory’s restaurant, which opened in Claremont, Cape Town in July 2024, is also the brand’s first Halaal restaurant.

The five virtual kitchen brands are now operating from 322 restaurants, with Pizza Pug and Just Wingz being the top performing brands.

The group continued to capitalise on consumer demand for convenience. Takeaway sales represent 14% of total local restaurant sales. Collect orders comprise 55% of takeaways, with the balance delivered by Uber Eats and Mr D.

The group’s restaurant footprint passed the 700 mark during the year. In South Africa, 27 restaurants were opened and nine were closed. The Doppio acquisition added 25 Doppio Zero, 10 Piza e Vino and one Modern Tailors restaurant to the network, bringing the South African restaurant count to 603. Shortly after year end, a second Modern Tailors restaurant opened in Groenkloof, Pretoria.

The international store network increased to 98 across 14 countries following the opening of 12 restaurants in Africa, including the addition of one outlet through the Doppio acquisition and the closure of four restaurants. After the year end, the two underperforming RocoMamas stores in Saudi Arabia were closed and the group exited the Middle East.

On the outlook for the 2025 financial year, Nichas said while South Africa’s economic growth is forecast to expand, trading in the short term is likely to remain subdued.

“However, the outlook for improved consumer confidence and spending is positive following the national elections in May and the transition to the new government. The stable electricity supply, lower inflation, the new two-pot retirement system and expected interest rate relief are all likely to support increased consumer spending.”

Nichas cautioned that economic growth and prosperity will only be possible through sustained job creation. “Spur Corporation is committed to supporting the Government of National Unity by creating employment opportunities to build a better South Africa. Our restaurant industry offers access to the workplace for young individuals through entry level roles, franchisees offer good employment prospects while the franchise model creates opportunities for aspirant business owners. Through our franchise network we employ a diverse workforce of 31 500 people, with 77% of the staff being black and 53% female.”

Management’s optimism is reflected in the planned acceleration of the group’s restaurant expansion programme, with 47 new outlets planned for South Africa and 13 internationally in the new financial year.

“Our brands have definitely not reached saturation levels in South Africa and the newly acquired Doppio Collection presents attractive expansion opportunities. We will continue to focus our strategic growth on the continent of Africa. We are well positioned to gain market share across categories, regions and countries, supported by our portfolio of 10 diverse and distinctive restaurant brands,” she added.

Ends

Issued by Tier 1 Investor Relations on behalf of Spur Corporation

For further information kindly contact
Val Nichas, Spur Corporation 021 555-5100 valentinen@spurcorp.com
Graeme Lillie, Tier 1 Investor Relations 082 468 1507 graeme@tier1ir.co.za

Media requests for images kindly contact
Moshe Apleni, Spur Corporation moshea@spur.co.za