Burger Benchmarks: What Famous Brands Can Teach Future CFOs

2 Min 25 Sec Read | 575 Words

With the economy under pressure and consumer wallets tightening, you’d think fast food would take a hit. But Famous Brands—owner of Wimpy, Steers, and Mugg & Bean—just posted a juicy set of results. While many businesses are trimming the fat, this restaurant group is serving up growth, profitability, and some smart financial strategy along the way. For aspiring CAs and business leaders, there's more on the menu than just burgers.

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Holding the Sauce: Famous Brands’ Recipe for Resilience

Famous Brands, the holding company behind household names like Wimpy, Steers, and Mugg & Bean, recently dished up some impressive results. Revenue jumped nearly 10% to R8.3 billion, headline earnings rose 15%, and South African operations delivered a tasty R913 million in operating profit.

For aspiring finance professionals, this isn't just another set of flashy numbers—it’s a masterclass in business fundamentals done right, especially during a tough economic cycle.

For the purpose of this article we’re focusing on Wimpy and Steers as key players in their stacked portfolio.

The Branding Angle

On a road trip? Need a midway stop and lunch?…Get a wimpy burger.

Flame Grilled…It just tastes better.

Wimpy’s red booths and filter coffee have become almost synonymous with South African road trips, while Steers’ “Flame-Grilled, It Just Tastes Better” slogan taps into sensory branding and product differentiation. These aren’t just nostalgic cues—they're deliberate brand assets that drive customer loyalty, pricing power, and repeat business. In essence, Famous Brands has secured mental real estate in the minds of South African consumers.

Brand equity doesn’t sit on the balance sheet in plain sight, but it’s often what separates companies that endure for generations from those that fade with the trends.

For those working in valuations, M&A, or impairment testing, recognising how consistent branding supports customer retention, reduces acquisition costs, and enables premium pricing is a nuanced yet essential skill.

Equally, for aspiring CEOs and founders, a deep understanding of branding and consumer psychology isn't just nice to have—it’s a strategic imperative.

Cost Control & Strategic Franchising

While load shedding, volatile global markets, and rising input costs continue to batter the retail and hospitality sectors, Famous Brands has leaned into cost efficiency. Its franchising model reduces direct exposure to store-level risks, while centralised procurement and logistics help protect margins.

From an IFRS 15 perspective, the franchisor–franchisee relationship significantly affects how revenue is recognised, highlighting how this model shifts both risk and reward between parties. Beyond financial reporting, franchising is also a powerful engine for scalability. A standout example is Plato Coffee, which has leveraged this model to grow its footprint without the usual headaches of compromising quality or operational control…for the most part. After all, not every franchisee is low maintenance, as is the case when working with people in any business.

Capital Allocation That Adds Value

Famous Brands also increased its dividend by 10%, a move that signals confidence without compromising growth. In a post-COVID market where many firms remain cash-strapped, this shows how disciplined capital allocation builds investor trust while remaining committed to systems upgrades — spending smartly on supply chain tech, data integration, and customer analytics. — which builds long term sustainable returns.

As a finance professional it’s not just about cutting costs but also deploying capital to build resilience, efficiency, and long-term brand equity.

Roundup

Famous Brands isn’t just selling burgers and coffee—it’s serving up a case study in how strategic fundamentals drive sustained success. From branding that builds loyalty, to a franchising model that scales smartly, and capital allocation that backs long-term value—this is the kind of integrated thinking every CA(SA) in training should pay attention to.

Whether you're preparing for your next IFRS tutorial, planning a startup pitch, or stepping into a finance internship, ask yourself:

• Is the brand working as hard as the balance sheet?

• Does the model scale without breaking the system?

• Are we allocating capital with clarity and purpose?

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