Chicken Kitchen Corporation Announces Record Sales For Fiscal 1997 And First Quarter 1998
PR Newswire - October 29, 1998 18:44
MIAMI BEACH, Fla., Oct. 30 /PRNewswire/ -- Chicken Kitchen Corporation (OTC Bulletin Board: CKKC), announced today that restaurant revenues for FYE 1997, ended March 31, 1998, increased 359% to $2,214,139, compared to restaurant revenues of $615,064, for FYE 1996, ended March 31, 1997. It further announced that revenues for the first quarter ending June 30, 1998 continued to increase to $1,435,076, compared to revenues of $128,928 for the quarter ending June 30, 1997. This represents a 1,013% increase. These increases are primarily due to the acquisition of 4 restaurants completed over the period of FYE 1997.
Chicken Kitchen Corporation operates six company-owned restaurants in the Miami area. These restaurants are projected to reach revenues of over $6,000,000 for FYE March 31, 1999, thus maintaining an average of over $1,000,000 in sales per unit. The average size for the existing six restaurants is only 1,450 square feet, or $690 in sales per square foot. For stores open and operating at least 12 months, sales increased by 18.9% over the same period last year.
While restaurant revenue and operating cash flow continued to increase, the company reported a loss of $2,136,233 or .21 per share for FYE 1997, ended March 31, 1998 and a loss of $156,079 or .02 per share, for the first quarter of 1998, ended June 30, 1998. These losses are primarily due to costs and write-offs relating to the acquisitions of the 4 restaurants for FYE March 31, 1997, and for the first quarter of 1998, ended June 30, 1998. The acquisition and opening of the sixth store was completed with capital raised at the end of FYE 1997, a Private Placement issue for a Preferred Convertible Stock consisting of 4,000 new shares of $1,000 each, for a total of $4,000,000. Additional one-time costs and expenditures related to the acquisition and the opening of the sixth restaurant will appear in the second quarter of 1998, ended September 30, 1998. These are one-time charges only and do not reflect ongoing expenses.
The Chicken Kitchen(R) concept feature marinated grilled chicken entrees, freshly prepared side orders and signature sauces. All chicken items, delivered fresh (never frozen) are marinated in the Company's proprietary blend of fruit juices, herbs and spices and grilled to order in the Company's award winning "open kitchen" restaurants. All of the Company's side dishes are prepared fresh daily in each restaurant, utilizing only fresh and natural ingredients. Most of the menu items are designed to be low in fat, cholesterol and calories and prepared in accordance with the guidelines established by the American Heart Association.
The highlight of the Chicken Kitchen(R) menu is the World Famous Chop- Chop. A customer favorite, this product consists of marinated skinless boneless breast of chicken, grilled to perfection and chopped in strips, it is then laid on top of a bed of rice, mixed with diced tomatoes and lettuce, and a choice of different toppings. Each World Famous Chop-Chop offering is designed to cater to the diverse ethnic taste that may vary according to consumer and regional preferences, thus attracting the diversity of consumers in the local marketplace. All restaurants offer eat-in, take-out, and a speedy delivery and catering service, and are open 7 days a week, typically from 11:00 AM to 11:00 PM.
Chicken Kitchen(R) restaurants are efficiently designed to fit the smallest real estate sites available and to keep the initial capital investment to a minimum. The typical restaurant size averages approximately 1,400 square feet, but can also be built in as little as 500 square feet, and the initial capital investment required can be as low as $150,000. The small compact footprint requirement makes the concept flexible to many small locations within strip malls and in non-traditional food locations such as airports, schools, universities and hospitals.
The Founder and CEO, Christian de Berdouare further states, "We are very pleased with the strong increase in same store sales in our system for all of 1998, and are concentrating our efforts in reducing costs at the restaurant level, that will result in even better profitability in the future. We are also happy to have turned the corner corporately and to operate in a positive cash flow mode starting from the third quarter of our FYE September 30, 1998. We are extremely excited about the strong interest in franchising that we have received so far, and will concentrate our focus in building a first class franchise system in 1999."
CHICKEN KITCHEN CORPORATION STATEMENTS OF OPERATIONS
3 Months 3 Months Year Year
Ended Ended Ended Ended
June 30, June 30, March 31, March 31,
1998 1997 1998 1997
REVENUES
Restaurant
Revenues $1,435,076 $128,928 $2,214,139 $615,064
COSTS AND EXPENSES
Cost of revenues 1,317,089 181,351 2,033,398 748,820
General &
administrative 274,066 167,727 2,316,964 560,107
Total Costs and
expenses 1,591,155 349,078 4,350,362 1,308,927
INCOME (LOSS) FROM
OPERATIONS (156,079) (220,150) (2,136,223) (693,863)
BASIC EARNINGS
(LOSS) PER SHARE (.02) (.02) (.21) (.11)
BASIC WEIGHTED
AVERAGE SHARES
OUTSTANDING 11,578,969 10,149,699 10,698,823 6,176,595
RESTAURANTS IN
OPERATION AS OF
END OF PERIOD 5 1 5 2
Statements contained herein that are not historical facts are forward- looking statements as those 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, and the actual management of growth, competition and other risks. Actual results may differ materially from such information set forth herein.
SOURCE Chicken Kitchen Corporation
/CONTACT: Investors, David Krasna, Chicken Kitchen, 305-867-4433, or
e-mail, DKrasna@chickenkitchen.com/
(CKKC) |
