Healthy food chain Oliver’s opens 18th store, but shares are yet to recover
Food & Agriculture
Food & Agriculture
Link copied to
Healthy fast food chain Oliver’s opened its 18th store this week, more than halfway to its target of 33 this financial year.
The fast-growing chain edged into positive operating cashflow territory last quarter with $5000 left from sales revenue of $7.7 million — up from $4.4 million in sales last quarter.
Oliver’s invested another $6.1 million in new buildings and acquisitions, leaving $1.8 million in the bank — with an estimated cost base of $10.5 million this quarter.
Oliver’s shares fell 3 per cent to 17.5c on Thursday, down from highs of 44c at the opening of their first Queensland store in July.
The shares have yet to recover from a steep fall in July after the group announced a profit downgrade.
Oliver’s Real Food (ASX:OLI) provides healthy eating options at its stores along major arterial highways that have traditionally been the realm of fast food chains such as McDonald’s and Red Rooster.
Their latest store opening is in a food court next to McDonald’s at a service station in Euroa, two hours north of Melbourne along the Hume Highway, a town with a population of about 2700.
Further north in Maryborough, Queensland the company has rebranded ‘Sexie Coffie’ as an Oliver’s store after a sale and leaseback arrangement worth $2 million to the company.
The new stores continue the company’s strategy of east-coast highway stores, with a total of 33 planned to be up-and-running by mid-2018.
Oliver’s has been in operation for 12 years. The group has been listed for six months following a $15 million initial public offering offered at 20c.
Some 90 per cent of products at their stores are Oliver’s branded. Products include Nespresso-compatible compostable organic coffee capsules and organic lemon, lime and bitters.