Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Burger Fuel boosts first-half profit 37 percent

Burger Fuel boosts first-half profit 37 percent as Middle East sales surge, shares slide

By Paul McBeth

Nov. 20 (BusinessDesk) - Burger Fuel Worldwide, the fast food chain and franchisor, boosted first-half profit 37 percent as sales in its Middle Eastern franchises surged and the local chain took on a new structure. The shares sank 6.5 percent to $1.15.

Net profit rose to $308,000, or 0.57 cents per share, in the six months ended Sept. 30, form $225,000, or 0.42 cents, a year earlier, the Auckland-based company said in a statement. Revenue climbed 10 percent to $5.3 million, with Middle Eastern sales climbing 22 percent to $1.49 million. The New Zealand unit lifted revenue 12 percent to $3.87 million.

The company will not pay an interim dividend, preferring to horde capital for expansion.

"Results for this period demonstrate a determined focus to grow company profits, whilst at the same time balancing out the need for further investment into our international expansion," chairman Peter Brook said. "Whilst we are always mindful of returning profits to shareholders by way of dividends, it is essential at this time that we continue investment to support growth and take a long-term view of our business."

In recent years Burger Fuel has increased its exposure to the Middle East by signing master licensing agreements, which earns the company up-front territory fees and on-going royalties based on store turnover.

The fast food chain is focused on breaking into Middle East nations, and is part the Beachheads Global public-private partnership run by New Zealand Trade & Enterprise, which provides tailored mentoring for high-growth local companies.

The company increased system sales 27 percent to $22.1 million. Total system sales represent till takings across all company-owned and franchise stores.

Burger Fuel sold its company-owned Australian store to a franchisee last year, and sees the market as holding large potential in the future.

The tightly-held stock trades infrequently on the NZAX, and has surged 132 percent this year. Today's fall values the company at $61.7 million. When the company went public in 2007 it sold 15 million shares at $1 apiece.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: RBNZ Keeps OCR At 3.5%, Signals Slower Pace Of Future Hikes

Reserve Bank governor Graeme Wheeler kept the official cash rate at 3.5 percent and signalled he won’t be as aggressive with future rate hikes as previously thought as inflation remains tamer than expected. The kiwi dollar fell to a seven-month low. More>>

ALSO:

Weather: Dry Spells Take Hold In South Island

Many areas in the South Island are tracking towards record dry spells as relatively warm, dry weather that began in mid-August continues... for some South Island places, the current period of fine weather is quite rare. More>>

ALSO:

Scoop Business: Productivity Commission To Look At Housing Land Supply

The Productivity Commission is to expand on its housing affordability report with an investigation into improving land supply and development capacity, particularly in areas with strong population growth. More>>

ALSO:

Forestry: Man Charged After 2013 Death

Levin Police have arrested and charged a man with manslaughter in relation to the death of Lincoln Kidd who was killed during a tree felling operation on 19 December 2013. More>>

ALSO:

Smells Like Justice: Dairy Company Fined Over Odour

Dairy company fined over odour Dairy supply company Open Country Dairy Limited has been convicted and fined more than $35,000 for discharging objectionable odour from its Waharoa factory at the time of last year’s ”spring flush” when milk supply was high. More>>

Scoop Business: Dairy Product Prices Decline To Lowest Since July 2012

Dairy product prices dropped to the lowest level since July 2012 in the latest GlobalDairyTrade auction, led by a slump in rennet casein and butter milk powder. More>>

ALSO:

SOE Results: TVNZ Lifts Annual Profit 25% On Flat Ad Revenue, Quits Igloo

Television New Zealand, the state-owned broadcaster, lifted annual profit 25 percent, ahead of forecast and despite a dip in advertising revenue, while quitting its stake in the pay-TV Igloo joint venture with Sky Network Television. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news