BurgerFuel plans US and Australian stores

BurgerFuel has ended its collaboration agreement with Subway and Franchise Brands.

BurgerFuel Worldwide, the NZAX-listed fast food chain franchisor, is opening five new Australian stores and expects to announce the timing of its US expansion soon.

The Auckland-based company will sign agreements for five franchise restaurants in Sydney, Brisbane and the Gold Coast before the end of March 2015, adding to two in Sydney, it said in a statement.

"Although our biggest project is the upcoming expansion into the US, our Australasian team is focusing heavily on the Australian market, where we see lots of opportunity for BurgerFuel," chief executive Josef Roberts said.

Last month the burger chain announced plans to bring franchise stores in-house to boost profit, and said it had bought an outlet in Henderson, Auckland, for an undisclosed sum. It is targeting at least a 20 percent return on investment from company-owned stores, and is considering opening its own restaurants in New Zealand, before taking the format overseas.

At the start of this year, BurgerFuel raised $5.9 million from US investor Franchise Brands to help fund its global growth aspirations, including plans to reach into the world's biggest economy.

Shares of BurgerFuel were unchanged at $2.85 and have soared 78 percent since the start of the year.