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Brazil Fast Food Corp. Q4, FY 2008 results down
April 9, 2009
RIO DE JANEIRO -- Brazil Fast Food Corp., the second largest fast-food restaurant chain and operating under the Bob's, KFC, Pizza Hut, In Bocca al Lupo Café and Doggis brands in Brazil, has reported its results for the fourth quarter ended on Dec. 31 were impacted negatively by the strong U.S. dollar.
For the quarter, same-store sales were up 8.2 percent compared to the same period last year. Year to date, same-store sales were up 8.4 percent.
Revenue for the quarter was up 34.2 percent at $38.6 million (Brazilian Reais), compared to R$28,758 in the same period last year. Year-to-date, revenue was up 7.8 percent at R$123.4 million, compared to R$114.4 million last year.
The net loss for the quarter was R$7.8 million compared to a gain of R$6.9 million in the same period last year. Year to date, the net loss totaled R$3.9 million, compared to a gain of R$13.5 million last year.
Net income for the year includes a financing cost and foreign currency exchange loss of R$6.7 million and includes a one-time charge of R$2.7 million associated with recalculation of interest on fiscal debt that was added to the principal owed to the federal government. Absent those charges, net income for 2008 would be R$5.5 million.
"We are disappointed with our results for the quarter, which were impacted by unexpected losses associated with the sharp depreciation of the Brazilian currency against the U.S. dollar as well as an adverse judgment in a tax dispute with the Brazilian federal government," said Ricardo Bomeny, president and CEO of Brazil Fast Food. "We are pleased to note however, that the current economic slowdown has not impacted our sales for the quarter and absent the above mentioned one-time charges we would have been profitable for the quarter as well as for the fiscal year 2008."
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