Freshii sees sales climb amid aggressive growth strategy

Freshii Inc. share prices tumbled as the Toronto-based restaurant chain missed earnings expectations for the second quarter.

The Toronto-based company, which reports in U.S. dollars, saw net income nudge into the black at US$298,000 in the latest quarter, compared to a loss of US$383,000 in the second quarter of 2017.

Adjusted net income inched up to three cents per share, falling short of analysts’ expectations for four cents per share, according to Thomson Reuters Eikon.

Total revenue jumped 25 per cent to US$5.56 million, the vast majority coming from franchise food and beverage sales as the health-oriented chain continued its expansion strategy across nearly two-dozen countries.

Same-store sales growth for the quarter ended July 1 was 0.9 per cent. That compared with samestore sales growth of 4.2 per cent a

year earlier. Freshii shares, which were down about 10 per cent in midday trading, ended the day at $5.64, down 10.9 per cent.

The company says it expects up to US$285 million in sales from as many as 760 stores within the next year or so, a big leap from its current count of between 400 and 500 locations.

Freshii fare is on offer on hundreds of Air Canada flights daily, part of an “omni-channel” plan that also aims to install about two-dozen branded coolers in Shell Canada Ltd. stations later this month.