Business Report:

Tough competition for fast food chains Steers and Wimpy resulted in sales growth contraction for the year to February, but parent company Famous Brands remains undaunted and expects to benefit significantly from the World Cup next month.

In the 12 months under review Famous Brands, which also owns the Debonairs, Fishaways and Mugg & Bean outlets, reported an 8 percent increase in revenue to R1.7 billion while operating profit was up 17 percent to R305 million.

“Trading conditions remained extremely tough but the effect of the recession was offset by the growing repertoire of our brands,” chief executive Kevin Hedderwick said.

Headline earnings a share rose 29 percent to R2.06 while earnings a share climbed 27 percent to R2.02.

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