Solid sales growth leads to share price jump for Spur

Picture: Sunday Times

Excluding its UK and Irish restaurants which ceased trading by the end of June, sales growth was 10.4%. At the end of 2016, the group’s restaurants numbered 590, 15 more than in June. Of these, 60 are outside of SA.

During the second half of 2016, it entered New Zealand and Ethiopia by opening Spur Steak Ranches, and Oman with a RocoMamas outlet.

Thursday’s sales update included RocoMamas for the first time. Spur said RocoMamas grew sales 113.2% from the matching six months in 2015. Excluding new restaurants, RocoMamas grew sales 45%.

Its next fastest-growing brand was The Hussar Grill, which grew sales 58%. Excluding new outlets, the brand’s sales growth was 38%.

"Despite the slowing economy, RocoMamas continues to show strong growth, while the robust results from The Hussar Grill highlights the resilience of the higher-income consumer," CEO Pierre van Tonder said.

The group appears to be scaling back Captain DoRegos, whose sales declined 15.8%.

John Dory’s: Fish, Grill, Sushi, on the other hand, grew sales 17.8%. Much of this growth appears to be from new outlet since comparative sales growth was 4.6%.

Its flagship Spur Steak Ranches grew sales 4%. The brand’s existing restaurants grew sales 2%. Panarottis Pizza Pasta grew sales 10.6%, of which 9.7% came from existing restaurants.

"Our focus in the second half of the year will continue to be driving growth through value promotions, aggressive marketing and expanding our local and international restaurant base," Van Tonder said.