South Africa’s Famous Brands scraps full-year dividend

by Reuters 0

Photo: Geograph.

JOHANNESBURG (Reuters) – South African fast food group Famous Brands scrapped its dividend on Monday for the first time in 13 years, seeking to conserve capital after debt levels rose following seven acquisitions, which include Gourmet Burger Kitchen.

“It is anticipated that, subject to future acquisitions and operating requirements, payment of dividends will resume in the 2018 financial year,” the company said in a statement.

The South African group, which also owns casual dining chain Wimpy UK and fast food assets such as Steers and Debonairs, bought Britain’s Gourmet Burger Kitchen for 2.1 billion rand ($163 million) in September.

($1 = 12.9206 rand)

(Reporting by Nqobile Dludla; Editing by Mark Potter)