Arab Spring opens door for Burger Fuel in Libya, shares gain 11%
Burger Fuel Worldwide, the local fast-food chain targeting franchises in the Middle East, has signed up a new franchisee in post-Gaddafi Libya.
The burger chain, which went public in 2007, signed an agreement with Sadeen General Trading in Libya, which already operates European coffee brands in the North African nation.
Burger Fuel has been selling licences in the Middle East, which now accounts for about a quarter of its revenue, based from its international headquarters in Dubai.
The shares [NZX:BFW] climbed 11 percent to 89 cents on the NZX today and have jumped 51 percent this year.
ABOVE: Burger Fuel's recently opened Iraq store.
“We’re interested in both established and emerging markets, especially those that are re-inventing themselves, creating new democracies and progressing,” chief executive Josef Roberts said in a statement. “We see big opportunities for Burger Fuel to establish now and grow over the years to come.”
Last year, Burger Fuel opened two stores in Saudi Arabia and two in Dubai and signed a franchise agreement in Iraq. It also agreed to a master licence for Egypt and entered into a joint venture with United Arab Emirates to open stores in Cairo and Abu Dhabi from the middle of 2012, and last month signed up a franchise deal for Qatar.
The company exports New Zealand beef into the Middle East and North Africa to service its branded stores on those regions.
Burger Fuel 12-month chart courtesy S&P Capital IQ.