Friday, June 10, 2011

Burger Fuel Worldwide Ltd: FY 2011 Profit Commentary



You might think that since Burger Fuel Worldwide Ltd [BFW.NZX] have made a maiden profit of just under $34,000.00 in the year to March 31 2011 after 4 years of trying and millions spent getting there that I would be starting to sing the company's praises from the roof-tops but I am still pretty damb negative even after their first result with black ink.

Lets have a look at some of the key figures:

Profit of $33,513.00 up on last years $552,983.00 loss.

Revenue of $8.326 million down on last years $8.722 million

Middle East stores performing well.

$1,213,785 in cash & no debt.

On first look and if you ignore that it took 4 years to get here, the signs look OK.

Heres the fly on the burger bun though, while the losses have been pared back by more than half a million that has been done by cost cutting rather than an improvement in the operation of the business and in absence of revenue growth, the company, who is a franshisor and gets it revenue from a portion of sales from franchisees, continues to put the focus in its profit releases on how much sales at their franchisees stores have increased rather than focusing on the bottom-line at the parent company.

Fine, revenue is supposed to increase as sales at its franchisees stores grow but we just haven't seen this yet and investors need to know just when the current $8.2 million odd is going to be translated into a decent sustained profit.

Management are very bullish about expansion in the Middle East but investors should note that we have seen this kind of exuberance before - in terms of bullish growth projections in Australasia pre-IPO - and it has turned into nothing but broken promises.

We need to see some good sustained profits before I can give this company a pass mark.

4 out of 10.

Burger Fuel Worldwide @ Share Investor

Burger Fuel Worldwide: Losses Mount
Burgerfuel: Dubai Marketing Hype!!!
Burger Fuel 2010 Full Year Profit Analysis
Burger Fuel 2010 Full Year Profit Preview
Burger Fuel Worldwide: 2009 Half Year profit analysis
Stock of the Week: Burger Fuel Worldwide
Download full company analysis from Thomson First-Call
Burger Fuel doesn't rule out capital raising
Burger Fuel Worldwide: Closer look at Company Accounts
Analysis - Burger Fuel Worldwide: FY profit to 31/03/09
Burger Fuel: Running on Empty
Burger Fuel leaves investors hungry
Burger Fuel management cagey over company progress
Burger Fuel cooks up Dubai deal
NZX share trades with strings attached
Don't buy Burger Fuel, yet
Burger Fuel: Inside info?
Burger Fool IPO: Burger Fool?
Exclusive Interview with Burger Fuel's Josef Roberts
Burger Fuel's Daytime drama
Burger Fuel share price out of gas
Beefing up store numbers
Director explains share price drop
Burger Fuel slims down in value
Burger Fuel and Coke
Marketing Burger Fuel's future
Pumpkin Patch VS Burger Fuel
Burger Fuel results and commentary

Discuss BFW @ Share Investor Forum - Register free
Download BFW Company Reports


From Fishpond.co.nz

Every Bastard Says No: The 42 Below Story

Buy Every Bastard Says No - The 42 Below Story, by Geoff Ross & Justine Troy & more @ Fishpond.co.nz

Fishpond


c Share Investor 2011