According to the restaurateur, total first quarter revenue--including franchise royalty and fee income--was $44.4 million compared to $43 million for same period last year. Checkers managed to achieve these results even though it sold 17 company-owned restaurants to franchisees.
At the end of the first quarter, Checkers had 792 restaurants including 205 company-owned and 587 franchised restaurants. Company-owned restaurants generated sales of $40.4 million during the first quarter versus $39.2 million for the same period in 2004.
During the first quarter of 2005, company-owned same store sales increased 6.4%m while franchise same-store sales increased 6.5%, according to Keith Sirois, president & CEO of Checkers. The company has posted same store sales increases in 16 out of the last 17 quarters, or about four years.
"We think our results this quarter, particularly our top line, are a reflection of sustained momentum," Sirois says.
Expenses such as audit fees and beef priced have impacted Checkers' net income for the first quarter. Food and paper cost increased by 70 basis points to 31.7% of all sales, according to Checkers CFO Pat Plumley. "We did see significant year-over-year increases in commodity pricing," he says.
Looking forward, Checkers plans to complete 20 remodels this year in addition to the 25 remodels it completed last year. "We've seen these efforts make a significant impact on sales results," Sirois says. Moreover, the restaurateur has development agreements for 129 franchise units to be built by 2009.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
