BurgerFuel quits Iraq amid tensions

BurgerFuel opened its first Iraqi store in 2012. Photo / BurgerFuel

New Zealand fast-food chain BurgerFuel has announced it will be leaving Iraq.

The turmoil in the Middle East was enough to spook the company's master licensee in Iraq into closing the Kiwi burger franchise's last store in that nation.

In a statement from company Secretary Mark Piet, the company announced to the stock market that it had closed its last remaining store in Baghdad.

"Whilst Iraq did experience a period of stability a few years ago and two BurgerFuel restaurants were operating at one point, the situation in Iraq has progressively worsened," the statement said.

"Given the ongoing turmoil and recent escalation of major potential warfare, the company saw no prospect of operating in Iraq in the future."

Shares in the company rose 1.2 per cent to 43.5 cents at the close of the market yesterday.

The company said there would be no material effect on its earnings as a result of the single closure in the country.

This announcement came amid uncertainty in the Middle East, with growing tensions between Iran and the United States.

BurgerFuel opened its first Iraqi store in 2012 as part of international expansion plans.

BurgerFuel CEO of international markets Chris Mason said at the time that entering new territories was a major focus for the company.

The BurgerFuel website states that the company currently has stores across New Zealand, the United Arab Emirates, Saudi Arabia and the United States.

This is not the first time the company has pulled out of Iraq, having also done so in October 2014 in response to the growing threat of Isis.

It would relaunch in 2016 with the Baghdad outlet, which has now been closed.