Burger Fuel Group Limited Analysis

Overview

The company listed on the NZAX market in July 2007.

The offer was for up to 15m shares (25% of the total) at $1 each with a minimum of $8m sought in order to list. Investors received 1 option for every 5 shares they acquired.

Founding Shareholders Chris Mason and Josef Roberts purchased shares from the public pool, on the same terms as all other applicants, to ensure the minimum subscription was met.

BFW has four main areas of revenue: up-front franchise fees, on-going royalty fees, sales of certain proprietary goods and store income from company-owned stores.

Performance

The following information was extracted from Burger Fuel Group Limited's half year results, released 29 November 2024:

The Directors of Burger Fuel Group Limited (BFG) present the unaudited results for the 6 months to 30 September 2024.

Net Profit after tax for the period was $438,733 compared to $581,136 for the same period last year. This represents a decrease of (24.5%). Profit was reduced by $221,688 due to the requirement to defend a single shareholder opposition to the proposed return of capital as outlined below.

Group Operating Revenue (excluding IFRS 16 interest income) decreased by (1.58%) on the same period last year to $12.4M.

The Group has no debt and as at 30 September 2024 had cash reserves of $4.4M.

Total system sales (all regions, all brands) were $54.8M for the period, representing a decrease of (5.04%) over the same period last year. The decrease in sales is partly due to softening economic conditions and the closure of 3 franchised stores being BurgerFuel Hereford Street in Christchurch, Winner Winner Pukekohe and a store in Saudi Arabia. This has however been partly offset with the opening of the franchised BurgerFuel Whanganui store in July 2024 which is performing well. FY25 is also benchmarking against high sales growth in FY24 (11.12%) when we started rolling out delivery across the BurgerFuel system.

Total store numbers globally across all three brands were 70 as at 30 September 2024. The new brands, Winner Winner and Shake Out accounted for 5.7% of total systems sales and BurgerFuel International sales accounted for 4.18% of total BurgerFuel sales.