Freshii Inc. Reports 2016 Revenue Up 45% & Plans To Increase Number Of Restaurants By +50% In 2017

Written by BNN.ca

Freshii Inc. (TSE:FRII) says in its first quarterly earnings report since it began trading on the Toronto Stock Exchange in January after a $125-million initial public offering, that its 2016 revenue was US$16.1 million (up from US$11.1 in 2015) and its net income was US$1.6 million which included a loss of nearly $500,000 in its fiscal fourth quarter.

The company says it opened 100 restaurants in fiscal 2016, including 34 in the fourth quarter and that same-store sales -- those from locations open at least a year -- grew 7.7% in the fourth quarter and 6.8% for 2016 on the whole. It says it's aiming to add between 150 and 160 franchised restaurants in 2017 to the current 278 locations primarily in Canada and the U.S. and intends to enter the United Kingdom in its efforts to grow to 840 locations worldwide by the end of 2019.

All this follows its founder's audacious public call yesterday (read yesterday's article posted on TalkMarkets In An Open Letter, Freshii Inc. (TSE:FRII) Proposes Select Subway Restaurants Convert To Freshii Restaurants) to buy out select franchisees from rival Subway, which has more than 44,600 restaurants. Subway initially declined comment on the proposal but “The CEO of Subway reached out to me yesterday,” Matt Corrin told BNN on Wednesday. “I plan on returning her call today and we will start the dialogue.”

Freshii Inc. class A shares closed Tuesday at $13.69, up from $12.22 at the end of its first day of trading on Jan. 31.