KEY POINTS:
BurgerFuel Worldwide has more than doubled its half-year revenue but the listed fast food retailer says the global economic downturn is slowing its expansion.
Revenue for the six months ending September 30 was $3.5 million, up from $1.4 million the previous year, while net losses more than halved to $669,000.
Chief executive Chris Mason said the period had seen unprecedented volatility in local and international economies.
"We have experienced large commodity and fuel price increases that have hit high cost levels for us and our franchisees," Mason said. "As a result, our focus quickly shifted from expansion, to tighter cost management and franchisee support, ensuring that ... BurgerFuel was protected and still able to grow, albeit at lower levels than we had anticipated."
Store numbers totalled 28 in Australia and New Zealand with sales for all stores from which BurgerFuel earned franchise royalties up 12.4 per cent to $12.3 million.
"Given the global economic situation that is unfolding, we do not anticipate significant [new store] growth in the financial year ending 2009," Mason said. "The focus will remain on preserving margins and reducing costs where possible."
BurgerFuel listed on the NZAX last year, with shares that floated at $1 closing unchanged yesterday at 38c.
Chairman Peter Brook said the result was in line with expectation.
Store rollout in New Zealand this financial year was uncertain due to current economic conditions.
"In Australia we continue to build the brand in Sydney, but again are taking a considered, conservative approach as a result of the economic situation there," Brook said.
Plans for Middle East expansion, specifically Dubai, were well advanced, he said.
"Our master franchisee together with [BurgerFuel Worldwide] management are seeking site locations that meet the company's criteria in regard to significant brand exposure and traffic count."
BURGERFUEL
Six months ending September 30
Revenue
2008 - $3.5m
2007 - $1.4m
Net loss
2008 - $669,000
2007 - $1.4m
