Burger Fuel Group’s net income declined amid lower revenue in the fiscal half year ended September 30.
Net profit plunged 24.5 per cent to $438,733, which the company said is due to the requirement to defend a single shareholder opposition to the proposed return of capital.
Operating revenue fell 1.58 per cent to $12.4 million.
System sales slid 5.04 per cent to $54.8 million, partly due to the softening economic conditions and the closure of three franchise stores.
BurgerFuel New Zealand sales dipped 2.02 per cent, impacted by the closure of the store on Hereford Street. The store failed to recover from the challenges caused by Covid-19, a new food hub opening around the corner, and the need to close the road in front of the store due to roadworks.
Winner Winner sales plummeted 42 per cent due to the closure of the company-owned store in Takapuna and a franchise store in Pukekohe. The closures left the group with two Winner Winner stores under franchise, one in Hamilton and one in Wellington’s Courtenay Place.
Shake Out sales decreased 17.3 per cent amid reduced foot traffic in Auckland CBD, while its Hamilton store has been impacted by a big amount of food competition in the region.
The group expects the next year’s trading to be around the same as the past six months but also anticipates upgrades in both brand and store development to enter the market by the middle of next year.
