Famous Brands, Africa’s leading branded food services franchisor, announces its annual results for the year ended 28 February 2026.

 The Group delivered revenue and operating growth driven by consumer demand for its iconic Leading Brands portfolio and the resilience of its vertically integrated business model. Revenue increased by 5.6% to R8.7 billion (2025: R8.3 billion), while operating profit rose 4.5% to R955 million (2025: R914 million), supporting an operating profit margin of 10.9% (2025: 11.0%).

Overall, free cash flow reduced by 9.1% to R662 million (2025: R728 million), but within expectations given the investments made in the year. The Group remains highly cash-generative driven by performance in operations in South Africa. HEPS increased 12.1% to 583 cents (2025: 520 cents), with basic earnings per share (BEPS) up 9.8% to 600 cents (2025: 547 cents). The Group declared a final dividend of 220.45 cents per share, bringing the total dividends declared for 2026 to 382 cents (2025: 345 cents).

“Our sound financial and operational performance in 2026 underlines the resilience of our strategy, despite a constrained operating environment. The Group delivered value, quality and innovative offerings to meet the needs of a cash-strapped, discerning consumer. We are also seeing the positive results from investing in an efficient, scalable Supply Chain and improving the consumer experience through technology,” comments Darren Hele, CEO of Famous Brands.

Capital allocation

The Group’s total borrowings position was R1.0 billion (2025: R1.1 billion), and finance costs on borrowings decreased by 13.3%, supported by favourable interest rates and capital repayments. The net debt: equity of 0.64 times remains a comfortable position for the Group. In December 2025, the Group concluded a R1.7 billion debt refinancing facility with Nedbank. The new facility features better pricing, which will lower the Group’s cost of funding, and offers flexible access to funds for its expansion activities.

In January 2026, Famous Brands announced the implementation of the Group’s first share buyback programme. The Group returned R54 million to shareholders through the programme, which commenced on 1 February 2026. During the year, a total of 933,459 shares were repurchased and held as treasury shares.

Famous Brands invested R214 million (2025: R214 million) in capex, with the majority allocated to the completion of the Midrand Cold Storage Facility, which was completed on time, within budget and opened in June 2025. “This year, we marked the conclusion of our multi-year investment programme to build a more efficient, modern Logistics platform.. This critical programme has helped us serve a materially larger franchise network. Our Midrand Cold Storage Facility, the last component of Project Decade, is already yielding benefits, including reduced transport costs, lower energy requirements and increased storage capacity,” adds Hele.

Brands

The Group’s pillar encompasses 15 restaurant brands, including household favourites such as Steers, Debonairs Pizza, Wimpy and Mugg & Bean.

 Leading Brands – South Africa

Leading Brands’ revenue increased by 6% to R1 billion (2025: R969 million) due to 6% growth in system-wide sales*, while like-for-like sales** grew by 2.8%. This growth was driven by the strong consumer appeal of the brand portfolio, competitive value offerings, careful menu price adjustments, and franchise network growth. The footprint grew by 3%, with 105 new restaurants opening during the financial year. Operating profit increased to R542 million (2025: R516 million). The Group opened six new drive-thrus in line with its goal of expanding its South African drive-thru presence.

* System-wide sales refer to sales reported by all restaurants across the network, including new restaurants that opened in 2026.

 ** Like-for-like sales refer to sales reported by all restaurants across the network, excluding restaurants opened or closed in 2026.

Southern African Development Community (SADC)

The Group is represented across 11 countries in the region. Economic conditions in Botswana and Zambia, where the Group has the biggest markets, deteriorated, undermining consumer spending. Revenue declined 6% to R423 million (2025: R451 million), while operating profit decreased to R29 million (2025: R51 million).

 Africa and the Middle East (AME)

The Group operates in nine countries in Africa (outside of SADC) and the Middle East. Revenue decreased by 17% to R59 million (2025: R71 million), with an operating loss of R35 million (2025: (R43 million)).

 Signature Brands – South Africa

The Signature Brands portfolio comprises eight niche brands, namely LUPA Osteria, Mythos, Salsa, Turn n Tender, Coffee Couture, NetCafé, Vovo Telo and PAUL. Revenue was in line with the prior year at R202 million (2025: R198 million), while the operating loss increased to R11 million (2025: (R9 million)). The portfolio faced continued pressure, reflecting softer consumer demand for dining out. Like-for-like sales declined by 0.9%, and system-wide sales declined by 1.7%.

 United Kingdom (UK)

Economic conditions in the UK remain subdued, affecting demand for eating out. Revenue declined by 9.4% to R119 million (2025: R132 million), and the operating loss was R10 million (2025: operating profit of R7 million).

 Supply Chain – South Africa

The Group’s Supply Chain comprises its Manufacturing, Logistics, and Retail operations. The Manufacturing and Logistics operations provide the Brands portfolio in South Africa and other markets with high-quality and competitively priced products and ingredients.

Revenue increased by 7.2% to R6.2 billion (2025: R5.8 billion), due to sustained front-end demand. Operating profit improved by 13.5% to R504 million (2025: R444 million). The Supply Chain operations benefited from efficient manufacturing technology and product in-sourcing initiatives. Revenue growth was supported by bringing the Coca-Cola basket and frozen retail products’ distribution in-house. However, profitability was affected by materially higher beef and coffee prices, which the Group did not fully pass on to its franchise partners or consumers.

Outlook

The Famous Brands business model is underpinned by franchise partners who continue to invest in the Group’s brands. Several franchise partners are building multi-restaurant, multi-brand networks.

“We are focusing on efficiency and cost discipline to support the quality of our earnings and long-term sustainability. Our capital allocation priorities include earnings distribution, executing the share buyback programme, paying down debt, and ensuring we are invested in growth opportunities,” concludes Hele.

• Revenue up 5.6% to R8.7 billion (2025: R8.3 billion)
• Operating profit up 4.5% to R955 million (2025: R914 million)
• Headline earnings per share (HEPS) up 12.1% to 583 cents (2025: 520 cents)
• Free cash flow down 9.1% to R662 million (2025: R728 billion)

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