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Brazil Fast Food Reports Third Quarter/Nine Months Results |
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Brazil Fast Food (OTCBB: BOBS.OB), a 555-outlet fast-food chain and the second largest hamburger fast-food chain operator in Brazil, announced financial results for the third quarter/nine-month period ended Sept. 30, 2007. |
System-wide sales for the Company's 'Bob's' chain were R$118.6 million for the third quarter of 2007, up 18 percent from R$100.7 million for the third quarter of 2006. Net restaurant revenue for Brazil Fast Food Corp.'s company-owned retail outlets increased nearly 40 percent for the third quarter of 2007 to R$25.8 million from R$18.4 million for the third quarter of 2006. Net franchise revenue was R$4.5 million for the three-month period ended Sept. 30, 2007 - up about eight percent from 2006's third-quarter net franchise revenue of R$4.2 million. The Company's operating income for the third quarter of 2007 decreased 22 percent to R$1.8 million from R$2.3 million for the same period of 2006. Net income for the third quarter of 2007 was R$1.6 million, or R$0.20 per share, basic and diluted, versus R$1.7 million, or R$0.21 per share, basic and diluted, for the third quarter of the prior year. Earnings before interest, taxes, depreciation and amortization (EBITDA) for the third quarter of 2007 were R$3.5 million, or R$0.42 per share, basic and diluted, compared with R$3.8 million, or R$0.47 per share, basic and diluted, for the third quarter of 2006.
For the nine-moth period ended Sept. 30, 2007, Brazil Fast Food reported system-wide sales of R$345.0 million - a 14 percent increase from system-wide restaurant sales of R$301.5 million for the first nine months of 2006. Net restaurant revenue climbed by about eight percent to R$64.1 million for the first three quarters of 2007 from R$59.5 million for the comparable period of 2006. Net franchise revenue rose 12 percent to R$13.0 million for the first three quarters of 2007 from R$11.6 million for the same period of 2006. Operating income increased by 19 percent for the third quarter of 2007 to R$7.1 million from R$6.0 for the same period of 2006. As of Sept. 30, 2007, net income had risen year-to-date to R$6.6 million, or R$0.80 per share, basic and diluted - 59 percent higher than the net income reported for the same period of the prior year, which was R$4.1 million, or R$.51 per share, basic and diluted. Earnings before interest, taxes, depreciation and amortization (EBITDA) rose 16 percent for the first nine months of 2007 to R$9.5 million, or R$1.16. per share, basic and diluted, from R$8.2 million, or R$1.01 per share, basic and diluted, for the first three quarters of 2006.
Ricardo Figueiredo Bomeny, Chief Executive Officer of Brazil Fast Food Corp., commented, 'We are at a truly exciting point in the life of our Company. During the third quarter, we expanded our chain past the 550 store milestone to end the third quarter with a total of 555 points of sale. We increased our exposure as well as our third-quarter revenues by exclusively providing food and beverages for the Pan-American and Para Pan-American Games in Rio de Janeiro. We further boosted our revenues by operating the KFC brand in Brazil. While our net results for the quarter are positive as well, they may appear falsely lackluster in comparison with our results from the third quarter of 2006, a period in which an extremely strong Brazilian economy fueled extraordinarily good results for our Company.
'Our company has continued to shine in terms of its investment value as well. In the first nine months of 2007, Shareholder's Equity increased about 61 percent. To maximize the future value of our Company, we recently retained a well-known and widely respected restaurant consulting firm. With their help, we believe that we will be able to further improve our overall store operations, which should result in the more efficient use of our financial and human resources and, ultimately, in the expansion of our profit margins.'
ABOUT BRAZIL FAST FOOD CORP.
Brazil Fast Food Corp. owns and operates, both directly and through franchisees, the second largest chain of hamburger fast-food restaurants in Brazil, through its wholly owned subsidiaries, 22N Participações Ltda. and Venbo Comércio de Alimentos Ltda. Brazil Fast Food Corp. conducts business in Brazil under the trade name 'Bob's.' As of Sept. 30, 2007, the Company had 555 points of sale, which includes traditional restaurants, kiosks and re-locatable trailers. In April 2007, Brazil Fast Food - through its wholly owned subsidiary, Clematis - also began operating the KFC brand in Brazil, with four directly owned and operated restaurants in Rio de Janeiro.
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