Shares of the quick-serve restaurant brand Freshii Inc. (TSX:FRII) were up 6.68% at the bottom of the noon hour on January 24. The stock is still down over 30% since its initial public offering in January 2017. However, preliminary fourth quarter results released today give reason for optimism going forward.
The company posted same store sales growth of 6.4% in Q4 2017 and saw overall same store sales climb 5.5% in 2017. This surpassed the company’s 2017 forecast of 5%. Freshii opened 25 net new stores in the fourth quarter and 92 stores total in 2017. The company is expected to release full fourth quarter and end year results on February 22, 2018.
Freshii has been expanding quickly since it opened in 2005. Its health-casual brand is designed to appeal to younger demographics and leadership has been known to boldly poke older established brands. CEO Matthew Corrin recently penned an open letter to Subway and recommended it convert some of its planned closures into Freshii stores.
The stock was battered in 2017 after the company was forced to adjust its forecast. It suffered a setback with regards to its expansion plans in the United States and the United Kingdom. However, successive earnings have been positive and Canadians are expected to spend more on dining out in 2018. At its current price Freshii stock remains attractive considering its growth trajectory and the growing popularity of quick-serve restaurants.
