BurgerFuel Worldwide is considering selling up after a report from KPMG questioned the current state of the company. BurgerFuel Worldwide enlisted KPMG to review its options after a potential deal with the founders of Subway fell through.
Following the KPMG report, BurgerFuel will focus on its New Zealand operations and the launch of its two other brands – chicken restaurant Winner Winner and Shake Out, a quick-service burger concept which was launched last year at Auckland’s Goodside development.
The company remains under the control of founders Chris Mason and Josef Roberts. The pair hold 73 percent, with the rest shared between over 2,500 shareholders. The most recent share value was 55 cents which put the value of the business at $30.3 million – its lowest value since 2011.
The BurgerFuel board have now requested that KPMG explore all strategic options.
“KPMG will therefore shortly begin preparation to conduct a formal process seeking expressions of interest regarding a sale, merger, joint venture, international partnership, domestic partnership or alternative proposals that may arise from the process,” the company said in a statement. “The board will keep the market updated with any developments should they occur throughout the on-going strategic review process.”
BurgerFuel launched its first US restaurant in 2017 in Indianapolis. In March last year Mason stepped down from the board and became the master licensee for the franchise.
“Our initial entry into the US was in an exploratory capacity to establish the viability of the BurgerFuel concept in this large market,” Roberts said at the time. “Whilst this has been achieved, the Board have reviewed the ongoing investment costs required in America and made the decision to exit the market in a developer and store owner capacity.”
“I believe the brand landing and development work achieved to date sets BurgerFuel up for a bright future,” said Mason upon the announcement. “The BurgerFuel USA team is passionate and committed to capitalising on the success we have had in Indianapolis and replicating this in other parts of the state and the USA.”