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JOHANNESBURG (Reuters) - Grand Parade Investments (GPI) Ltd GPLJ.J, which holds the Burger King franchise in South Africa, said on Wednesday it was in talks to sell a stake in the business, without giving a reason.
Shares in GPI fell 6.84% to 3.54 rand at 0920 GMT, their lowest level in almost three-weeks.
GPI signed a long-term master franchise agreement with Burger King in 2012, betting on South Africa’s lucrative fast-food market, consumer appetite for flame-grilled burgers as well as their price appeal.
The Whopper Burger maker, which launched its first restaurant in Cape Town, South Africa in 2013, competes directly with market leader McDonald`s Corp MCD.N and other restaurant chains such as RocoMamas.
The launch in South Africa had formed part of Burger King’s expansion into high-growth emerging markets.
In the year ended June 30, the fast food franchise started generating a “long awaited” profit of 11.7 million rand ($795,512.49) for GPI from a loss of 27.1 million rand, driven by higher sales from new restaurants and a significant improvement in same store sales of 10.3%.
As of June 30, Burger King had 92 restaurants, with a total of 18.6 million customers served in the period compared to 15.6 million in the prior year, it said in its full-year result statement released in September.
In February, GPI had announced plans to close its loss-making Dunkin Donuts and Baskin Robbins franchises in South Africa after failing to find a buyer.
In June, the company sold back a portion of its 17.5% stake in restaurant franchise group Spur Corporation SURJ.J.
