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

 

Housing: Affordability Drops 14%, Driven By Auckland Prices

Housing affordability across New Zealand fell 14 percent in the year ending November 2014, with Auckland’s lack of affordability set to reach levels it hit during the height of the global financial crisis, according to the latest Massey University Home Affordability Report More>>

ALSO:

The Dry: Fonterra Drops Forecast Milk Volumes By 3.3 Percent

Fonterra Cooperative Group, the worlds largest dairy exporter, reduced its milk volume forecast for the 2014-2015 season by 3.3 per cent due to the impact of dry weather on production in recent weeks. More>>

ALSO:

Strike: Lyttelton Port Workers Vote To Escalate Dispute

Members of the Rail and Maritime Transport Union (RMTU) at Lyttelton Port today voted to escalate their industrial action. Around 200 RMTU members have been operating an overtime ban since 17 December and today they endorsed a series of full withdrawals of labour at the port. More>>

ALSO:

Scoop Business: NZ Dollar Falls To 3-Year Low As Investors Favour Greenback

The New Zealand dollar fell to its lowest in more than three years as investors sold euro and bought US dollars, weakening other currencies against the greenback. More>>

ALSO:

Scoop Business: NZ Govt Operating Deficit Smaller Than Expected

The New Zealand’s government’s operating deficit was smaller than expected in the first five months of the financial year as a clampdown on expenditure managed to offset a shortfall in the tax-take from last month’s forecast. More>>

ALSO:

0.8 Percent Annually:
NZ Inflation Falls Below RBNZ's Target

New Zealand's annual pace of inflation slowed to below the Reserve Bank's target band in the final three months of the year, giving governor Graeme Wheeler more room to keep the benchmark interest rate lower for longer.More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

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