to join the discussion
SUR at R40.99 is trading on sentiment around restaurant traffic rather than fundamentals. With leisure spending under pressure in SA, the valuation needs to reflect either margin expansion or same-store growth that I haven't seen yet.
SUR down 1.18% today but the market's being too harsh. Earnings resilience through load-shedding chaos and a 6.2% dividend yield at these levels looks undervalued relative to the domestic consumer recovery we're seeing.
spur's been stuck in that r38-r40 range for ages, tough to get excited when the franchise model isn't firing like it used to. casual dining's getting hammered by loadshedding and weak consumer, compare that to competitors doing better with their pricing power and you see the problem. until they show earnings momentum or a real turnaround story i'm staying on sidelines.
spur's been range bound since the rand started moving. franchisees are hurting with load-shedding and foot traffic down, margins getting squeezed hard. compare that to shoprite or pick n pay, they at least got the volume to absorb costs. sur's got what, 150 outlets? not enough scale when consumer's cutting back on eating out.
SUR getting smashed but fundamentals are solid, franchise model prints cash like Dominos did before it ran. Last results showed margin expansion and the brand still owns casual dining down here. R39.60 is a gift if you believe in the recovery play, LFG!!
Do you think the franchise model actually holds up if consumer spending stays weak though. Spur's been riding on decent earnings but half the revenue comes from franchisees struggling with load-shedding and rising costs, ja.
Good Morning Everyone, SUR sitting at R42.05, franchise model holding up better than direct ops during load shedding season.
Spur sitting pretty at R42.05, lekker recovery from the lows ngl
sur finally waking up at r42.05, franchise model is printing money while competitors like tsogo sun are still sorting themselves out. earnings growth in the last two years has been solid and the casual dining rebound aint over yet. best is yet to come!
@julianreins_jse exactly, inventory turns dont lie. good day to top up
@julianreins_jse spot on with the inventory angle, that's the real tell
SUR's got more grunt than the Bulls pack right now
@julianreins_jse what capex timeline though, cash position looking tight to me
Do you think SUR can actually justify the valuation without meaningful revenue? Last close was R44.69 but I'm not seeing the fundamentals yet. Similar explorers trade on optionality, sure, but where's the catalyst in the next 12 months.
SUR sitting at R44.69 but the rand weakness is actually helping exports, check the MD&A on fx headwinds from last quarter. Margins compressed but volume growth offsetting it, been watching the inventory turns improve which suggests demand is real not just pricing. Could read as a recovery play if they execute on capex, comparable multiples to RMH are still cheaper here.
Look, SUR closed at R44.69 and yeah the balance sheet is tight but this is exactly where Shoprite was before they scaled. We're pre-revenue, can't fix stupid if you don't see the vision here. Management has the connections and the logistics play is real, people just don't get it yet.
SUR taking a 2.38% knock today but the dividend yield around 3.8% is still decent for a restaurant player with recovery momentum. Revenue's been climbing nicely the last two years, though eish, the P/E sits elevated at 18x which leaves little margin for error if consumer spend ti
Grabbed another tranche of SUR at R4200 this morning when that -2.55% flush hit the tape. Consumer discretionary always gets hammered first in these fear cycles, but Spur's franchise model and pricing power make these dips lekker opportunities to compound positions ahead of the n
Current R 41,50 — 50% of range
Fundamentals sourced from JSE disclosures. Updated quarterly.