BurgerFuel Worldwide, the NZAX-listed fast food chain, more than doubled first-half earnings as it opened seven new stores in the period, lifting sales.
Net profit rose to $213,000 in the six month period ended Sept. 30, from $96,000 a year earlier, the Auckland-based company said in a statement. Group operating revenue rose 27 per cent to $8.5 million, while system sales, which includes burger sales in its franchised stores, rose 29 per cent to $38.6 million. Operating expense rose 24 per cent to $8.2 million.
In the period the chain opened seven new restaurants, with the total number of BurgerFuel outlets at 62, and last month announced plans for five more stores in Australia before the end of its 2015 financial year.
In September, the burger chain announced plans to bring franchise stores in-house to boost profit, buying an outlet in Henderson, Auckland, for an undisclosed sum. It is targeting at least a 20 per cent return on investment from company-owned stores, and is considering opening its own restaurants in New Zealand, before taking the format overseas.
"We had previously advised the market given the need for considerable investment this year, we expected expenditure in the year to be greater than revenue, resulting in a possible loss for the period," the company said. Accordingly, its first-half profit "was a particularly good result. We do however expect development expenditure to continue through the second half of the year."
