Chicken Kitchen Corporation Announces Revenues Of $6,676,497 For FYE March 31, 1999, An Increase Of 200 Percent
MIAMI BEACH, Fla., Aug. 4 /PRNewswire/ -- Chicken Kitchen Corporation (OTC Bulletin Board: CKKC), announced today that restaurant revenues increased over 200 percent to $6,676,497 for fiscal 1999, compared to $2,214,139 for the corresponding period last year. The increase was primarily attributed to the addition of new restaurants in fiscal 1999. Two acquired restaurants were open for the full year and another three for part of the year in fiscal 1998, and all five for the entire year in fiscal 1999. The sixth restaurant was opened August 1998. The reduction in net losses of over 73 percent to $558,061 from $2,136,223 in the prior year was primarily attributable to reductions in operating expenses and consulting fees.
Average sales per restaurant open at least twelve months were $1.2 million. Cost of sales decreased 2% as a percentage of sales in the current year compared to the prior year. This improvement was the result of operational controls and systems that were put in place during fiscal 1999.
The first franchise was sold during fiscal 1999 and since then five (5) franchises have been sold, for a total of six (6). The Initial Franchise Fee, $25,000 for each new franchise sold, will be reflected in the results, only when each restaurant will be open. In addition, each new franchisee will be required to pay four (4) percent weekly royalties.
"We are very pleased to see the benefits in fiscal 1999 of our efforts to reduce costs," said the Founder and CEO, Christian de Berdouare. Stating further, "We expect our efforts to reduce costs will result in even better profitability in the future. Our efforts during the past year to build a first class franchise system are resulting in an acceleration of our franchise growth. We will continue to be single minded in building a quality franchise system into the future and are committing substantial financial resources to the effort. In the short term we anticipate this commitment will negatively impact our profitability, however, positioning the firm for high returns in the future."
Chicken Kitchen Corporation operates gourmet-quality restaurants with fast-food convenience under the tradename Chicken Kitchen. The menu features marinated, grilled chicken entrees, freshly prepared side orders and signature sauces. Chicken items are marinated in the company's secret blend of fruit juices, herbs and spices, then grilled-to-order in the Company's award- winning, open-kitchen style restaurants. Chicken Kitchen combines flavor, convenience and value with fresh, healthy menu items. The chicken is never frozen and all the Chicken Kitchen side dishes are prepared daily utilizing only fresh, natural ingredients. The menu is primarily composed of low-fat, low-cholesterol and low-calorie foods prepared in accordance with American Heart Association guidelines.
For more information, contact Mitch Gregory at Chicken Kitchen, (305) 867-4433 or mgregory@chickenkitchen.com .
CHICKEN KITCHEN CORPORATION
STATEMENTS OF OPERATIONS
FYE FYE
March 31, March 31,
1999 1998
Food and Beverage Sales $6,676,497 $2,214,139
COSTS AND EXPENSES
Cost of Sales $5,998,751 2,033,398
General & administrative $1,235,807 $2,316,964
Total Costs and expenses $7,234,558 $4,350,362
INCOME (LOSS) FROM OPERATIONS $(558,061) $(2,136,223)
EARNINGS (LOSS) PER SHARE $(0.07) $(.21)
WEIGHTED AVERAGE SHARES OUTSTANDING 12,121,463 10,698,823
RESTAURANTS IN OPERATION AS OF END OF PERIOD 6 5
Franchises Sold 1 0
Statements contained herein that are not historical facts are forward- looking statements as these items are defined in the Private Securities Litigation Reform Act of 1995. Except for historical information, this press release contains forward-looking statements that involve risks and uncertainties including, but not limited to, quarterly fluctuations in results, the actual management of growth, competition and other risks detailed in the Company's SEC filings. Actual results may differ materially from such information set forth herein.
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SOURCE: Chicken Kitchen Corporation
CONTACT: Mitch Gregory, CFO of Chicken Kitchen Corporation, 305-867-4433, or e-mail, mgregory@chickenkitchen.com |
