Burger Fuel Worldwide, the fast food chain and franchisor, boosted first-half profit 37 per cent as sales in its Middle Eastern franchises surged and the local chain took on a new structure. The shares sank 6.5 per cent 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 per cent to $5.3 million, with Middle Eastern sales climbing 22 per cent to $1.49 million. The New Zealand unit lifted revenue 12 per cent to $3.87 million.
The company will not pay an interim dividend, preferring to hoard 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.
