Iconic fast-food brand Burger King, it could be argued, is not getting a royal rating from local investors. The local Burger King franchise is 91% owned by empowerment company Grand Parade Investments (GPI), which has rolled out nearly 70 stores countrywide.Admittedly, prevailing sentiment for big international eatery brands being rolled out in SA looks a little queasy. Taste Holdings is still looking some way off making sumptuous profits from pizza brand Domino’s and coffee-shop brand Starbucks.Burger King is not yet also churning out profits, and GPI executives suggest real profitability will be apparent only in the year to end-June 2017. The store rollout has been lower than expected, but early indications are that margins will be relatively fat (somewhere between 55% and 60%) after a number of key inputs were "localised".While GPI’s prospects are firmly hitched to Burger King, the actual valuation breakdown at the company may surprise a few punters.As at the end of June, GPI’s r...
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