Industry News | February 23, 2001

Quizno's Posts Loss in 1Q 2001

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The Quizno's Corporation (Nasdaq: QUIZ) posted a loss of $2.1 million, or $.73 per diluted share, in its 1st quarter of fiscal 2001, which ended December 31, 2000. The Company was profitable in its core business of franchise operations and Company restaurants, but recognized non-recurring expenses of $3.4 million, of which $1.2 million were non-cash items. The balance of the non-recurring expenses was related to expenses for long-term financing.

The recent quarterly loss compares to a net income applicable to common shareholders of $385,434, or $.11 per diluted share, in the comparable period ending December 31, 1999.

Total revenue increased 41 percent from $8.8 million in the period ending December 31, 1999, to $12.4 million in this period. Continuing fees increased by 65 percent from $3.6 million in the period ending December 31, 1999, to $6 million in this period.

The Company, which franchises and owns and operates Quizno's Subs restaurants, opened 98 new restaurants in the 1st quarter, bringing the total number of Quizno's restaurants operating throughout the U.S. and in six foreign countries to more than 1,000 at the end of December 2000.

Domestic system wide sales increased 57% to $83.6 million in 1st quarter fiscal 2001 from $53.1 million in the comparable period in 2000. Same store sales increased 4.3% in the quarter ending December 31, 2000, over the same period in 1999.

A total of 152 new franchises were sold in the period, including one new international franchise.