Retail Food Group, which has a string of fast food businesses and franchises including Gloria Jeans, Donut King, Michel’s Patisserie and Crust pizzas, says it’s on track for a 50% rise in net profit to $55 million this financial year.
Much the rise is due to acquisitions and international growth. By 2018, the company expects 70% of new outlets to be offshore.
Last month the first joint venture Gloria Jeans outlet was opened at Tianjin, China. The company says it will open a minimum 25 coffee shops in China in next 12 months.
The Retail Food Group last year bought the global Gloria Jeans business for $163.5 million. The coffee shops, founded in Chicago in 1979, has 800 franchised outlets across 40 countries, including 450 in the US.
Managing director Tony Alford says the outlook is positive despite prolonged challenges in the retail environment complicated by growing unemployment.
The group will take a $18.5 million non-cash write down on assets after streamlining the business.
In a trading update, the company says it has increased its target for efficiency gains to $16 million over three years from $13 million.