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

 

Half Full: Dairy Payouts Steady, Cash Will Be Tight

Industry body DairyNZ is advising farmers to focus on strong cashflow management as they look ahead to the 2015-16 season following Fonterra's half-year results announcement today. More>>

ALSO:

First Union: Cotton On Plans To Use “Tea Break” Law

“The Prime Minister reassured New Zealanders that ‘post the passing of this law, will you all of a sudden find thousands of workers who are denied having a tea break? The answer is absolutely not’... Cotton On is proposing to remove tea and meal breaks for workers in its safety sensitive distribution centre. How long before other major chains try and follow suit?” More>>

ALSO:

Scoop Business: NZ-Korea FTA Signed Amid Spying, Lost Sovereignty Claims

A long-awaited free trade agreement between New Zealand and South Korea has been signed in Seoul by Prime Minister John Key and the Korean president, Park Geun-hye. More>>

ALSO:

PM Visit: NZ And Viet Nam Agree Ambitious Trade Target

New Zealand and Viet Nam have agreed an ambitious target of doubling two-way goods and service trade to around $2.2 billion by 2020, Prime Minister John Key has announced. More>>

ALSO:

Scoop Business: NZ Economy Grows 0.8% In Fourth Quarter

The New Zealand economy expanded in the fourth quarter as tourists drove growth in retailing and accommodation, and property sales increased demand for real estate services. More>>

ALSO:

Scoop Business: RBNZ’s Wheeler Keeps OCR On Hold, No Rate Hikes Ahead

The Reserve Bank has removed the prospect of future interest rate hikes from its forecast horizon as a strong kiwi dollar and cheap oil hold down inflation, and the central bank ponders whether to lower its assessment of where “neutral” interest rates should be. The kiwi dollar gained. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news