Quizno's Posts $1.1 Million Profit in Fiscal 2000

The Quizno's Corporation [8] (Nasdaq: QUIZ) posted a profit of $1.1 million net income applicable to common shareholders, or $.33 a share diluted, in its fiscal year ended September 30, 2000. That compares to a loss of $1.5 million, or $.55 a share diluted, for the nine months ended September 30, 1999. The 1999 loss was calculated after deducting the cumulative effect of changes in accounting principles, which amounted to $2,769,592, net of taxes, or $.90 a share. The company changed its year-end from December 31 to September 30 in 1999, resulting in the short reporting period for 1999. In 1998, the company posted a profit of $891,725 net income allocable to common shareholders, or $.26 a share diluted.

The company, which franchises and owns and operates Quizno's Classic Subs restaurants, sold 553 new franchises, including 63 international franchises in fiscal 2000. It also awarded several new master franchise rights, including the rights to develop Quizno's in Taiwan.

Total revenue for fiscal year 2000 increased 59 percent to $41.9 million from $26.3 million in fiscal year 1999. Continuing fees increased 74 percent to $18.1 million in 2000 from 10.4 million in 1999. company store revenue increased 81 percent to $15.0 million in fiscal 2000 from $8.3 million in fiscal 1999. As of September 30, 2000, there were 35 company-owned Quizno's restaurants, versus 25 company-owned restaurants September 30, 1999.

Domestic system wide sales increased 80 percent to $273 million in fiscal 2000, up from $152 million in fiscal 1999. The average unit volume at the end of fiscal 2000 was $390,000 compared to $369,000 at the end of fiscal 1999. Same store sales were up 7.9 percent in the year ended September 30, 2000 over the year ended September 30, 1999.

A total of 380 new Quizno's Subs restaurants opened in the year ended September 30, 2000, including 52 new international locations. Today the chain has surpassed 1,000 units throughout the U.S. and in four foreign countries.