BFG Preliminary announcement of full year results FY26
29/05/2026 15:20 NZST, FLLYRP
Chairman and Chief Executives’ Review
Burger Fuel Group Limited Preliminary Full Year Results for the 12 months ended 31st March 2026
Overview – FY26
The Directors of Burger Fuel Group Limited (BFG) present the results for the 12 months to 31 March 2026.
(The audit of these results is in the process of being finalised).
Net Profit after tax for the period was $1,968,937 representing a 91.8% increase on the previous year.
The FY26 profit result represented a solid continuation of momentum from our half year performance, resulting in a considerable profit uplift on the prior year and reflecting a strong overall performance by the Group. The FY26 result was largely driven by three main factors: increased sales across the business, a reduced requirement to incur the significant legal costs of prior years’ FY24 and FY25 and a one-off gain of $288K generated from the sale of the company-owned BurgerFuel Ponsonby store, in December 2025.
The result demonstrates the Group’s ability to deliver stability and growth despite the ongoing hurdles within the broader economic environment and particularly the hospitality sector. Given the economic challenges of FY26, this represents a very strong outcome for the Group and our best result to date.
BFG (unaudited) Total System Sales (all three brands, all regions) increased by 2.93% to $111.4M on the same period last year.
As of 31 March 2026, 62 BurgerFuel restaurants were operating in New Zealand and 3 were still operating in the Middle East.
As of 31 March 2026, there were 3 Shake Out and 1 Winner Winner restaurants operating in NZ and 29 Shake Out virtual stores operating out of BurgerFuel locations throughout New Zealand.
The Year’s Results and Group Outlook
New Zealand
Total systemwide sales across New Zealand (66 restaurants, all three brands) increased by 4.12% on the previous year to $108M. We opened the BurgerFuel Auckland - Royal Oak store in June 2025, and the new Hamilton Te Rapa store in October 2025 (this replaced ‘The Base’ store in Hamilton). Both these new franchised stores have been well received. The BurgerFuel Whanganui store has also now been trading for a complete year in FY26.
We are also scheduled to open BurgerFuel Huapai, in Auckland in September 2026, followed by BurgerFuel Richmond, Nelson in November 2026. Both stores are located in attractive, high-potential areas and will expand the brand’s reach into previously unserved markets.
Shake Out’s total sales increased by 20% in FY26. We have enabled 20 more Shake Out virtual kitchens in FY26 taking the total number of virtual kitchens to 29. We now have coverage throughout most of New Zealand, so everyone can try Shake Out through various delivery channels. These virtual outlets contribute a relatively low portion of overall system sales; however, they do provide franchisees with additional profit for little to no additional labour costs and increases brand awareness. We will continue with this channel as it also allows us flexibility to better combat discounting competition in the delivery sector.
Our company-owned Smales Farm and Commercial Bay Shake Out stores are still feeling the impact of declining foot traffic around both those locations, but we hope to see improvements in FY27. Shake Out investment remains negligible for FY27, and the focus for this brand will remain on operating the three current stores (two of which are company-owned) as well as the ongoing development and growth of the virtual kitchens.
The Winner Winner Courtenay Place, Wellington store is our only remaining Winner Winner store, and the franchisee is continuing with this brand as well as running a Shake Out virtual kitchen from this premise. We are no longer investing in Winner Winner.
The BurgerFuel Group sold its company owned BurgerFuel Ponsonby store in December 2025. This generated additional profit from a gain on sale of assets ($140K) and from the winddown of the lease under IFRS16 – Leases ($148K). This store is now operated under a franchise, and the new franchisee has been involved with the brand in the past, so has hit the ground running.
FY26 was another year of considerable investment in information technology (IT). In January 2026 we launched the new BurgerFuel online ordering platform (website & app - version 2). This new version is performing very well; it has better features it is more stable, and the new architecture will expedite roll out of new features and improvements. Our “White Label” online ordering platform is now also completed and is currently being trialled by several third-party users on a pilot basis. If successful, we see the ability to earn outside revenue from this software and we will be continuing to work on this new potential revenue stream throughout the year ahead.
Investment in our IT platforms will continue into FY27 and new features are being developed that have the potential to generate new revenue streams in New Zealand. IT investment into our own systems is all about maintaining ownership of our customers. This investment remains an essential component ensuring that we continue to grow the long-term value of the business.
The Middle East
Operation of BurgerFuel in the UAE remains under the DA (Development Agent) agreement. BFG generated modest royalties and profit from this region.
The FY26 result was not materially impacted by the Group’s Middle East operations. However, subsequent to year end, the region has experienced significant disruption due to the conflict involving Iran. This has led to a material decline in sales and a more uncertain operating environment across the region.
Management is continuing to assess the impact of these developments, including the effect on trading performance, costs, supply chains, and consumer demand. At this point, the duration and extent of the disruption remain uncertain, and the ongoing viability of the region will continue to be closely monitored.
On 16 May 2026, our Saudi licence holder elected to close the BurgerFuel store in Jubail, leaving the Amwaj store as the sole remaining BurgerFuel location in Saudi Arabia.
In Dubai, the business continues to operate from the World Trade Centre (WTC) site, supported by a food truck. Delivery is now fulfilled directly from the WTC store, rather than through third-party delivery kitchens, to ensure greater control over food quality, customer experience, and brand standards.
The Middle East system sales were down 26% in FY26. This is partly due to Saudi Arabia closing the Riyadh - Nakhlah store halfway through FY25 and closing various dark kitchens in the UAE.
Sales from this region represent 2.95% of total BurgerFuel sales. At present instability in the region is high and its future is unclear; we are not relying on any material revenue from the region in FY27.
Summary and Outlook
While FY26 represents the Group’s strongest result to date, and almost double the profit of FY25, we remain cautious as FY27 is expected to present a far more challenging operating environment.
Encouraging signs of recovery and renewed confidence were evident across the hospitality sector during the second half of FY26. However, unfortunately that economic momentum has been lost with recent geopolitical developments, including the Iran conflict, which has contributed to increased cost pressures and uncertainty, particularly as suppliers begin passing on the impacts of higher fuel and input costs. The full effect of these additional costs on consumers is not yet clear, including the extent to which they may influence discretionary spending and sales performance.
A further significant issue we are facing is the rising cost of ingredients, especially beef. There is strong demand for New Zealand beef globally, particularly from the USA and we have seen major price escalations, which look unlikely to subside in the medium term. With the ever-rising cost of goods resulting in shrinking margins, the Group has been investigating supply chain opportunities with view to more involvement in ingredient production, which may have the potential to deliver savings.
Given the current level of economic and geopolitical uncertainty, FY27 sales performance remains difficult to predict. Sales are expected to remain flat subject to a range of factors, including local economic conditions, consumer confidence, cost pressures, and the broader global impacts of ongoing conflict.
We remain alert to the potential for acquisition or joint venture opportunities and will continue to assess these as they arise. The cash position of the business remains strong. Cash will be used primarily to fund growth both within the system, as well as for any suitable outside opportunities. The opening of new stores often requires our capital assistance due to the considerably higher build costs today, so cash will also be employed in this area, so as the system can continue to grow. The ongoing global disruption and extended lead times for critical equipment and other store-opening requirements will also require cash to hold additional inventory of key equipment to support future store openings and operational continuity.
As noted above the Group will also continue to invest strategically in IT and other priority areas, while maintaining its “no material debt” policy. This approach ensures we retain strong cash reserves with the ability to fund market downturns, undertake system investment as required, and pursue new opportunities.
We would like to thank all our shareholders, staff, franchisees, suppliers, and, of course, our valued customers for their continued support.
Best regards
Alan Gourdie - Chair
Josef Roberts - Group CEO