Miami - Interfoods of America Inc. the Miami-based Popeyes Chicken & Biscuits franchisee with 30 stores in the Southeast, reported net income for the first nine months of fiscal 1998 increased over the same period a year ago by nearly 240%.
For the fiscal 1998 third quarter, the company reported pre-tax income of $122,629 compared to $93,528 in the fiscal 1997 third-quarter in which the company had a tax loss carry forward. Consequently, net income for the three months ended June 30, 1998, after an income tax provision of $42,334, was $80,295, or 1 cent per share, compared to $93,528, also 1 cent per share, for the same period the previous year.
For the nine months ended June 30, 1998, the company reported net income of $457,353, or 8 cents per share, compared to $135,058, or 2 cents per share, for the same period the previous year. Much of the earnings increase for the nine- month period was attributable to the first quarter sale of the company's Sobiks Subs sandwich subsidiary, which has allowed the company to devote its resources to expanding its Popeyes Chicken & Biscuit franchise.
The company's operating performance continues to reflect its successful expansion program in which it significantly improves the productivity and profitability of the stores it acquires. Since last September, the number of restaurants owned by the company has grown from 15 to 25 at the end of the fiscal 1998 third quarter. Last month, the company announced the completion of another acquisition, giving it a total of 30 Popeyes Chicken & Biscuits restaurants in Alabama, Florida and Louisiana.
As a result of these expansion activities, total revenue in the fiscal 1998 third quarter increased by 76% to $6,167,438, compared to $3,498,492 for the fiscal 1997 third quarter. Meanwhile, the improved efficiency and productivity of these stores contributed to a 48% growth in store level profits to $773,660 compared to $525,710 for the same period a year ago. For the full nine months, total revenue increased in fiscal 1998 to $16,243,615 from $10,616,405 for the same period in fiscal 1997, with store level profits growing by 59% to $2,006,924 from $1,262,530 for the same nine-month period a year ago.
"Our expansion program, which has given us steady revenue and income growth, continues on track," explained Robert S. Berg, Interfoods chairman and CEO. "Earlier this month we announced the acquisition of five Popeyes Chicken & Biscuits stores in Pensacola, Fla. In addition, during the third quarter we purchased sites for new restaurants in Fort Pierce, Fla. and Birmingham, Ala., markets in which we already have a presence."
In addition, the Miami-headquartered company has exclusive rights to develop as many as 11 Popeyes Chicken & Biscuits restaurants in four Caribbean basin countries - Antigua, St. Lucia, Trinidad/Tobago and Guyana.
Interfoods of America is one of the largest Popeyes Chicken & Biscuits franchisees in the United States, and the only one that is publicly owned. With annualized sales of approximately $25.5 million, the company, through its subsidiaries, owns and operates 30 Popeyes restaurants in Florida, Alabama and Louisiana.
Popeyes Chicken & Biscuits is the second-largest chicken chain in the world in terms of sales. It offers a unique Cajun, or New Orleans, style fried chicken along with side dishes that include red beans and rice, Cajun rice, shrimp and crawfish, as well as mashed potatoes and gravy. The brand has a presence in 40 states and 23 countries worldwide.
Meat Industry Insights News Service
P.O. Box 553
Northport, NY 11768
Phone: 631-757-4010
Fax: 631-757-4060
E-mail: sflanagan@sprintmail.com
Return to Home Page