Business Studies Course - Investment
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Newspaper article - Reading

Read this newspaper article about a fast-food company, and then asnwer the questions on the right. When you have finished, click "answers" to check your results.

What is Wuffyburgers up to?

Something is up at Wuffyburgers' Southampton headquarters. The company has been in touch with a number of merchant banks to raise a considerable sum of capital for some as yet undisclosed venture.

Wuffy has been one of the fastest growing hamburger chains in the country since it was founded by Brendan Wuffy seven years ago. Starting from a roadside kiosk in Southampton, Wuffyburgers has been opening a fast food outlet on an average of one every three weeks for the past two years.

However, there have been signs that Wuffy's expansion has been slowing down as the UK fast food market gets more competitive, and other cheaper imitators are following the Wuffy model of quick cheap takeaway hamburgers with a variety of tasty fillings.

The question has been what is going to happen next, and so far Wuffy has been playing his cards close to his chest. His disastrous takeover of Burgerzone in 1998 is still remembered by ther market. Then, when undisclosed losses on Burgerzone's books came to light, it sent Wuffy's share price plunging. In fact shares only regained their 1998 levels last year, before going on to their present high.

We would recommend our investors to hold their Wuffyburger shares until we can see where Brendan Wuffy intends to take his company. But for those who have faith in Mr Wuffy's Midas touch, now might be a good moment to take a punt.

City Finance News


1. This article is mainly concerned with ...
a. the past.   
b. the present.   
c. the future.   
d. the distant future.   

2. Has Wuffyburgers been successful?
a. No.   
b. Possibly.   
c. Probably.   
d. Yes.   

3. What problems does Wuffy now face?
a. An economic slowdown.   
b. Rival hamburger chains.   
c. Rising costs.   
d. Less expansion.   

4. What was the problem with Burgerzone?
a. A bad business model.   
b. Low share price.   
c. A disasterous takeover.   
d. Bad accounting.   

5. At present Wuffyburger shares are ..
a. Low.   
b. Below 1998 levels.   
c. Higher than ever.   
d. The article doesn't say.   

6. What does the article suggest investors should do?
a. Sell Wuffyburger shares.   
b. Buy Wuffyburger shares.   
c. Keep Wuffyburger shares.   
d. Wait for the right moment.   

7. What is Wuffyburgers probably doing now?
a. Borrowing money.   
b. Buying shares.   
c. A company takeover.   
d. Being sold.   

8. Buying shares in Wuffyburgers now is ..
a. a good idea.   
b. a bad idea.   
c. good if you trust Mr Wuffy.   
d. for people with a Midas touch.