Brazil's fast-food future improving - Brazil Fast Food Corp - Brief Article

Eurofood, August 31, 2000

The Brazil Fast Food Corporation, the second largest fast-food chain operator in the Latin American state, has announced its operating results for the second quarter ended 30 June 2000. The group, with more than 200 outlets across Brazil, recorded an operating profit of 33.3m reals (20.2m [European Dollar) compared to 30.2m reals last year. System-wide gross sales for the chain increased 21.8% to 71.4m reals, up from 58.6m reals. The company reported a net loss of 210 000 reals, an improvement on the 1999 figures, which saw a loss of 895 000 reals.

Peter van Voorst Vader, president and CEO of the Brazil Fast Food Corporation believes Brazil's retailers are recovering from last years devaluation of the real, and he expects the company to improve, believing that it is in a strong position to benefit from the recovering economy.

DEAL WITH PETROL STATIONS

The company has also announced a strategic deal with Petrobras Distribuidora, the largest chain of petrol stations in Brazil, which will see the company's fast-food products sold on the roadside. The move increases their store locations by around 15%. The agreement will see the group open up over 30 fast-food drivethru restaurants at Petrobras stations, primarily located in and around the nations largest two towns, Rio de Janeiro and Sao Paulo. Pertobras has a total of 7 200 outlets across Brazil, and the Brazil Fast Food Corporation operates its 200 outlets under the brand name Bob's.

Brazil Fast Food Corporation H1 results ('000 reals)

                       1999      2000

System wide sales    58 578    71 371
Operating revenue    30 157    33 269
Net loss            (4 526)   (1 411)