Brazil Fast Food Corp., the second largest QSR chain in Brazil with 846 points of sale, including KFC and Pizza Hut São Paulo has announced financial results for the third quarter ended Sept. 30, 2011.
Third Quarter 2011 highlights
- System-wide sales totaled R$236.8 million, up 20.6 percent from Q3 2010;
- Revenue totaled R$60.4 million, up 14.9 percent from Q3 2010;
- Points of sale totaled 846 at Sept. 30, 2011, up from 742 at the end of Q3 2010;
- EBITDA was R$7.0 million, down 36.9 percent from Q3 2010;
- Operating income was R$5.5 million, down 41.8 percent from Q3 2010;
- Net income was a loss of R$-0.54 million, or R$-0.07 per basic and diluted share, as compared to net income of R$5.3 million, R$0.65 in Q3 2010.
"We see a continuation of the current favorable business environment in 2011 and expect to benefit from, among other factors, increased spending associated with the build-out to support the World Cup and Olympics to be hosted in 2014 and 2016, respectively," said Ricardo Bomeny, president and CEO.
The net loss in the third quarter of 2011 is primarily due to a R$5.6 million non-cash charge resulting from a balance sheet adjustment to a provision for tax loss carry-forwards.
"We are pleased with the progress of our discussions with the tax authorities and are optimistic we will be able to favorably resolve the R$6.7 in contingent tax liabilities once the facts are carefully reviewed," Bomeny said. "We believe that the very positive trends in revenues and operating income for the first nine months of 2011 confirm that our business is healthy and on track."
Brazil Fast Food Corp. has been on a roll this year as the market heats up for QSR brands.
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