Spur's earnings rocket as customers head back to restaurants

Spur Corporation’s earnings climbed 119% in to R59 million in six months as customer restaurant returns increased.

In the half-year ended 31 December 2021, the group’s revenue increased by 40% to R441 million. The restaurant chain owner attributed the growth to a boost in franchise restaurant turnover and increased sales at its five company-owned restaurants and manufacturing and distribution division. 

In addition to its flagship Spur restaurant brand, the group also owns the John Dory’s, Panarottis, Hussar Grill, RocoMamas and Casa Bella brands. 

Total sales across the franchised restaurants increased by 28.3% to R3.7 billion, while headline earnings per share rose by 119% to 70.10 cents. In its interim results released on Thursday, Spur said it declared an interim dividend of 49 cents per share.

The group’s CEO Val Nichas said restaurants saw an increase in customers from August to December, following the reduction of lockdown levels and trading restrictions being eased. 

Despite the improved performance, Nichas said the franchised restaurant turnover was 9.5% behind pre-pandemic levels.

The group, which also has restaurants in the rest of Africa, Mauritius and the Middle East, expanded its footprint to 627 restaurants. In South Africa, Spur opened 16 new restaurants - seven RocoMamas, three Spur and two Panarottis outlets - and closed 10.

It has also added the Modrockers plant-based restaurant brand to its portfolio, which piloted four months ago in Rosebank, Johannesburg.

The group is following up its launch of its Spur Drive Thru, in 2021 with new sites and two new RocoMamas Drive Thrus.

Spur’s share price rose by more than 4% after it released its results.