QuiznoÕs posted a net income of $1.3 million, or $.35 per share diluted, before the cumulative effect of the change in accounting principle, compared to a profit of $502,891, or $.15 per diluted share in the same period in 1998.
"QuiznoÕs growth in revenue, franchises sold, units open and its cash flow remain excellent," said Rick Schaden, QuiznoÕs President and CEO. "The loss reflects a requirement to defer area director fees, which we had previously been permitted to take to income at the time of the sale."
Total revenue for the 1999 period was $20.7 million, an increase of 47% over the $14.2 million in the same period in 1998. Continuing fees more than doubled from $4.1 million to $8.7 million, and revenue from Company stores increased to $6.4 million from $5 million in the same period from 1998 to 1999.
System wide sales grew to $121 million in the 9-month 1999 period from $71.4 million in that period of 1998. Same store sales were up 7.1 percent for the nine-month period over the same period the year before.
A total of 395 new franchises were sold in the U.S. and 39 internationally in the period ended September 30, 1999. In addition, Master Franchises for Australia and Central America were awarded.
QuiznoÕs, which franchises and owns and operates QuiznoÕs Classic Subs restaurants, opened 197 new restaurants in the nine-month period, including 37 in Canada and 1 in Japan.