BurgerFuel doubles first half profit

 

BurgerFuelFast food chain BurgerFuel Worldwide has more than doubled first half earnings with seven new stores opening in the period and lifting sales.

Net profit rose to $NZ213,000 ($A198,296.33) in the six months ended September 30, from $NZ96,000 a year earlier, the company said in a statement on Wednesday.

Group operating revenue rose 27 per cent to $NZ8.5 million, while system sales, which includes burger sales in its franchised stores, rose 29 per cent to $NZ38.6 million.

In the period, the chain opened seven new restaurants, with the total number of BurgerFuel outlets at 62, and in October announced plans for five more stores in Australia before the end of its 2015 financial year.

BurgerFuel said the local burger market remains “highly competitive” with the presence of international chains like McDonald’s, Burger King and the arrival of Carl’s Jr, which is owned by fellow NZAX-listed fast food operator, Restaurant Brands, as well as “a number of smaller, niche market burger concepts”.

It said sales across its 39 New Zealand stores and two in Australia rose 36.3 per cent in the period.

The company also has 21 BurgerFuel stores across the Middle East, where it said sales increased 18 per cent in the six month period.

Conflict in the region resulted in it closing its single store in Iraq, while sales in its two Egyptian outlets were slow. The company was looking to capitalise on rising tourist numbers in Dubai, boosting its international exposure and said Saudi Arabia had potential for further stores.

BusinessDesk

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