Freshii Inc. is aiming to expand its network of franchised stores by 150 to 160 outlets by the end of its current fiscal year, the company said Wednesday as it reported its fourth-quarter earnings.
The Toronto-based fast casual dining chain said the planned addition of the new stores will push its network to between 430 and 440 locations.
The company also said it is aiming for same-store sales growth across its network for the year to be in the range of three to four per cent.
"During the fourth quarter, we opened 34 net new units, our most store openings in a quarter," Matthew Corrin, Freshii's founder, chairman and CEO, said in a release. "We also delivered system-wide same store sales growth of 7.7 per cent, our 15th consecutive quarter of positive same store sales."
Freshii said its fourth-quarter revenue increased 25 per cent to $4 million compared to $3.2 million US in the prior year, while it posted an overall net loss of $491,000, or two cents a share, compared to net income of $1.3 million, or five cents a share a year earlier.
The Toronto-based chain reports its financial results in U.S. dollars.
The company said its pro forma adjusted net income decreased by 48 per cent to $1.2 million US, or four cents per share, from $2.3 million, or nine cents a share, in the same period last year.
Earlier this week, Corrin issued a friendly open letter to the parent company of Subway restaurants to propose a tie-up between the two businesses.
"Let's explore a partnership in which we together convert select Subway stores to Freshii restaurants in a quick, low-cost way," said the letter published as a full-page newspaper ad in the Globe and Mail on Tuesday.
Freshii shares traded down more than five per cent in the wake of the earnings report. The stock, which started trading on the TSX following the company's IPO on January 31, fell 69 cents to end at $13. The company's IPO was priced at $11.50 a share.