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

 


Burger King widens annual losses on rising costs

Burger King widens annual losses on rising costs, increased competition

By Suze Metherell

July 28 (BusinessDesk) - Blackstone Group's Burger King chain in New Zealand widened its loss in 2013 as rising sales, in an increasingly crowded burger market, were offset by higher costs for raw materials and consumables, and increased property and consultancy expenses.

The fast-food chain made a net loss of $4.4 million in calendar 2013, wider than the $1.9 million 2012 loss, its first year under the ownership of US private equity firm Blackstone, according to financial statements for its holding company, Tango Holdings.

Sales rose 0.6 percent to $175.9 million, the accounts show. Consultancy expenses more than doubled to $3.5 million, raw materials and consumables - its biggest expense - gained 3.5 percent to $57 million, and property expenses climbed 4.8 percent to $29 million.

The local burger market is increasingly competitive, with the 2012 arrival of US chain Carl's Jr, brought over by Restaurant Brands, the NZX-listed KFC, Starbucks and Pizza Hut operator, to better compete against McDonald's and Burger King. Carl's Jr. has 15 shopfronts across the country and reported annual sales of $14.3 million for the year ended Feb. 24. BurgerFuel Worldwide, which listed on the NZAX in 2007, lifted New Zealand sales by 26 percent to $9.9 million in the year to March 31.

"Burger King New Zealand acknowledges 2013's increased competitive environment, however we remain focused on key business strategies that are right for our business," chief executive John Hunter said in an emailed statement. "Our menu innovation, restaurant expansion and refurbishment programme plus our operational and guest experience strategies remain our core focus for the continued growth of Burger King New Zealand."

Antares Restaurant Group, the operating unit of Tango Holdings which has the local franchise development rights for Burger King as well as some 80 stores, is the country's second largest burger chain by outlets after McDonald's Restaurants (NZ).

McDonald's reported a profit of $30.7 million in New Zealand last year as sales rose 5.6 percent to $216.6 million, partly reflecting the introduction of Georgie Pie.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Research: ‘Ageing Well’ Science Challenge Launched

Science and Innovation Minister Steven Joyce today launched the Ageing Well National Science Challenge, confirming initial funding of $14.6 million. More>>

ALSO:

Scoop Business: Govt Resisting Pressure To Pump More Cash Into Solid Energy

Prime Minister John Key says it is “not the government’s preferred option” to make a fresh capital injection into the troubled state-owned coal miner, Solid Energy, but dodged journalists’ questions at his weekly press conference on whether that might prove necessary... More>>

ALSO:

Lagest Ever Privacy Breach Award: NZCU Baywide Accepts “Severe” Censure In Cake Case

NZCU Baywide says that once it was found to have committed a breach of a former staff member’s privacy, it had attempted to resolve the matter... the censure and remedies for its actions taken almost three years ago are “severe” but accepted, and will hopefully draw a line under the matter. More>>

ALSO:

Scoop Business: PayPal Stops Processing Mega Payments; NZX Listing Still On

PayPal has ceased processing payments for Mega, the file storage and encryption firm looking to join the New Zealand stock market via a reverse listing of TRS Investments, amid claims it is not a legitimate cloud storage service. More>>

ALSO:

Housing Policy: Auckland Densification As Popular As Ebola, English Says

Finance Minister Bill English said calls by the Reserve Bank Governor for more densification in Auckland’s housing were “about as popular in parts of Auckland as Ebola” would be. More>>

ALSO:

Crown Accounts: NZ Government Deficit Smaller Than Expected In First Half

The New Zealand government's operating deficit was smaller than expected in the first six months of the financial year, as the consumption and corporate tax take rose ahead of forecast in December, having lagged estimates in previous months. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

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