Wimpy owner issues profit warning

Wimpy owner Famous Brands has issued a profit warning, saying basic earnings per share (BEPS) may be at least 20% below expectations.

In a financial update the company said it expected results for the six months to 31 August 2023 would see BEPS fall by between 13% and 33%, compared to the same period in 2022.

The South Africa-based restaurant operator said the fall was predominantly a result of the liquidation of Gourmet Burger Kitchen in August 2022.

It said it had improved revenue performance over the period, however “the high levels of sustained load shedding, related cost pressures and a challenging economic environment impacted the profitability of the group”.

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