Fast food franchiser. gets new capital after $2.8 million quarterly loss

999Views 1Comments Posted 20/09/2018

Franquicias Panameñas, S.A., a company that operates fast food restaurants KFC, DQ, Pizza

Hut, Taco Bell and Chili's, received an injection of capital of $7 million, after  experiencing  a$2.8 million loss during the second quarter of 2018.

From April to June 2018, the company registered a fall of in its operations, affected by

the economic slowdown, greater competition -mainly in the pizzas business- and shrinkage of of diners at  restaurants located on the construction route of Line 2 of the Metro.

On the other hand, their expenses have increased, due to the salary adjustment they have had to assume.

The information was shared with the Stock Exchange of Panama.

The $7 million capitalization in favor of Panamanian Franchises, S.A. was  contributed by Hentol,

S.A., the holding company of 100% of the shares of the operator of fast food restaurants.

The company has indicated that during this year they are taking important  cost cutting measures and  executing aggressive marketing plans.

The cumulative sales of the restaurants, as of June 30, 2018, amount to $52.4 million, which represented a decrease of 0.6%, while they must assume the expenses of restaurants recently opened  like Chili's.