Famous Brands, the owner of Wimpy, has issued a profit warning, indicating that its basic earnings per share (BEPS) for the upcoming financial period may be at least 20% below initial expectations.
In a financial update, the company stated that it anticipates a decline in BEPS ranging from 13% to 33% for the six months ending on August 31, 2023, 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'.