AmeriKing Reports Strong First Quarter 1998 Results

Strategic Insights -

AmeriKing, Inc., the nation's second-largest franchisee of Burger King restaurants, announced its financial results for the first quarter of 1998 in a Quarterly report to the Securities and Exchange Commission. The company reported impressive growth, with sales increasing 44% to $71.1 million from $49.9 million in the same period a year ago. Comparable restaurant sales rose 5.1%, while Earnings before interest expense, taxes, depreciation and amortization (EBITDA) jumped 63.6% to $7.2 million. AmeriKing's EBITDA margin also improved significantly, rising 110 basis points to 10.1% from 9.0% a year ago.

Key Takeaways:

  • AmeriKing reported sales of $71.1 million in the first quarter of 1998, a 44% increase from $49.9 million in the same period a year ago.
  • Comparable restaurant sales, which include sales at restaurants open more than 13 months, increased 5.1% in the first quarter of 1998.
  • Earnings before interest expense, taxes, depreciation and amortization (EBITDA) were $7.2 million, an increase of 63.6% over the first quarter a year earlier.
  • AmeriKing's EBITDA margin rose 110 basis points to 10.1% from 9.0% a year ago, indicating significant margin improvement.
  • The company acquired 63 restaurants in 1997, which contributed to the increased sales in the first quarter of 1998.
  • Larry Jaro, AmeriKing's chief executive officer, attributed the company's success to growth in same-store sales and margin improvement, in addition to the acquisition of new restaurants.

Statistics:

  • Sales for the first quarter of 1998: $71.1 million
  • Percentage increase in sales over the same period a year ago: 44%
  • Comparable restaurant sales: 5.1% increase
  • EBITDA for the first quarter of 1998: $7.2 million
  • Percentage increase in EBITDA over the same period a year ago: 63.6%
  • EBITDA margin in the first quarter of 1998: 10.1%

Sources:

  • AmeriKing's Quarterly report to the Securities and Exchange Commission, Form 10-Q, filed on May 11, 1998.
  • AmeriKing's press release, distributed on May 11, 1998, citing financial results and conference call details.