BurgerFuel shares soar on 33pc profit jump

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

Shares in gourmet burger company BurgerFuel are up more than ten per cent after the company reported strong full year growth and said its growth strategy is on track.

In the year ended March 31, net profit after tax for BurgerFuel Worldwide Limited rose 33 per cent to $532,170, with operating revenue for the BurgerFuel Group up 30 per cent to $18.7 million. The company said it had achieved a number of records for the year including opening 17 new restaurants - the equivalent of one every three weeks, and purchasing its second company- owned store in Henderson.

Total (unaudited) system sales were up 25 per cent to a record $82.8 million for the 12 month period.

BurgerFuel which also operates in Australia, Egypt, Saudi Arabia, Kuwait and the United Arab Emirates, has been eyeing the competitive US market since early last year when it raised $5.9 million from US investor Franchise Brands to help fund its global growth aspirations.

BurgerFuel chief executive Josef Roberts said the latest partnership announced last week with OhCal Foods LLC, which services more than 2100 Subway restaurant outlets, was its next strategic move, and the company was currently scouting potential sites in the US.

"We wanted to understand the US landscape in as much detail as possible, before settling on a strategic entry plan, including selection of our first state and a refined BurgerFuel model for this highly competitive, but potentially massive market," Roberts said.

BurgerFuel said it was pleased to have delivered a profit for the period, and said it had no debt and cash reserves of $7.7 million.

"Our previous market guidance spoke of anticipated losses in 2015 due to the investment that we must continue to make as a relatively small NZ company, reaching out to build our brand on the global stage," the company said. "Accordingly, we are pleased to have delivered a profit in the period."

Shares were trading up 10.94 per cent to $3.55 this morning.

See more from the latest BurgerFuel results here: