13 Jun 2013

Middle East expansion pays off for BurgerFuel

9:02 am on 13 June 2013

BurgerFuel has reported a sharp jump in profit for its full year, with the company beginning to reap the rewards of investing in the Middle East.

Group profit for the fast food chain rose 55% to nearly $1.1 million for the year to the end of March, compared with $700,000 for the same period a year ago.

Group revenue improved by 25% to $12 million, with growth in all three geographical areas where it operates.

The company, which is listed on the Alternative stock exchange, has 44 stores around the world, after opening an additional four in New Zealand and another five in the Middle East during the financial year.

BurgerFuel received $2 million from issuing new shares to the fund manager, Milford Asset Management last year.

Growth plans could hit financial performance

BurgerFuel says its plans to invest in its stores and growth this coming year could hit its financial performance.

Group chief executive Josef Roberts said BurgerFuel's push into the Middle East has driven the result and the company is beginning to scale up and has the ability to continue to expand.

He says the vision of the company is all about scale and opening more stores, and to do that, continued investment is needed in stores, people, development and design.

Mr Roberts says costs and expenses in building a brand and a global company will affect the company to some extent.

He says the focus for the company in the coming year is to expand into new markets.