Brazil Fast Food Corp., the second largest quick-service restaurant chain in Brazil operating Yum! Brands' KFC and Pizza Hut São Paulo, announced financial results for the second quarter ended June 30.
"We are pleased to report a very strong quarter of profitability and EBITDA growth, reflecting the strength of our brands and shift towards more franchised stores," said Ricardo Figueiredo Bomeny, CEO of Brazil Fast Food Corp. in a statement.
"We maintained a strong and liquid balance sheet, which gives us the flexibility to invest in future expansion," he added.
Below are highlights from the earnings report:
- System-wide sales totaled (real) $254.2 million, up 22.3 percent from the second quarter 2011;
- Revenue totaled R$55.1 million, up 8.0 percent from R$51.0 million in the second quarter 2011;
- Points of sale totaled 963 at June 30, up from 805 at the end of second quarter 2011;
- EBITDA was R$6.7 million, up 23.8 percent from Q2 2011;
- Operating income increased 23.9 percent year-over-year to R$5.0 million; and
- Net income was R$3.6 million, or R$0.45 per basic and diluted share.
Brazil Fast Food Corp. used R$9 million in cash toward investment in property and equipment to improve its retail operations, mainly setting up new owned-and-operated KFC and Pizza Hut stores.
"Under the KFC and Pizza Hut brand, we have own-operated stores, as franchisee of Yum! brands. We are focused on enhancing our own stores profitability and operational margins in the coming quarters," Bomeny noted.
