Burger Fuel expansion pays off
Burger Fuel Worldwide's franchise expansion into the Middle East has paid off for the fast food chain, with interim net earnings up 37 per cent.
However the company's domestic earnings remained lacklustre.
The NZAX-listed firm's unaudited net profit for the six months to September 30 rose to $308,000 from $225,000 in the same period last year. Revenue rose 10.1 per cent to $5.4 million.
The firm's shares fell 6.5 per cent to $1.15 in early trade, but have gained 117 per cent so far this year.
The result was marked by a stellar performance from its expansion into the Middle East, where it continues to sell franchises across several countries including Kuwait, Iraq, and Saudi Arabia.
During the period Burger Fuel's existing master licensee acquired the rights for Kuwait and also formed a joint venture to open additional stores in Abu Dhabi. The firm also expects to open franchises in Egypt and the Saudi capital of Riyadh.
Burger Fuel reported sales from the region rose 141 per cent in the period, compared to more modest revenue gains of 5.8 per cent and 6.1 per cent in New Zealand and Australia respectively.
New Zealand is still the firm's main earner, generating total revenues of $3.9m, versus $1.5m from overseas earnings streams.
No dividend was declared.
The Dominion Post