SECURITIES AND EXCHANGE COMMISSION
WASHINGTON D.C. 20549
FORM 8-K
________________________________
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
DATE OF REPORT (DATE OF EARLIEST EVENT REPORTED):
AUGUST 11, 1997
________________________________
THE QUIZNO'S CORPORATION
(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)
COLORADO 000-23174 84-1169286
(STATE OF INCORPORATION) (COMMISSION FILE NO.) (I.R.S. EMPLOYER
IDENTIFICATION NO.)
DENVER PLACE, PLAZA TOWER
1099 18TH STREET, SUITE 2850
DENVER, COLORADO 80202
(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES)
(303) 291-0999
(REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE)
ITEM 5. Other event
Press release regarding second quarter activity.
Reg. S-K
Exhibit No. Description Item No.
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*99.1 Press release 99
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
THE QUIZNO'S CORPORATION
Date: August 12, 1997 By: /s/ Richard E. Schaden
-----------------------------
Richard E. Schaden, President
and Chief Executive Officer
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*99.1 Press release 1
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FOR RELEASE AT 11:30 A.M. MOUNTAIN TIME ON MONDAY, AUGUST 11, 1997
THE QUIZNO'S CORPORATION REPORTS RECORD RESTAURANT OPENINGS, CONTINUED STEADY
GROWTH IN ROYALTIES, OVERALL LOSS FOR 2Q
DENVER, Colo. - The QUZINO'S Corporation (Nasdaq: QUIZ) reports that it
finished the second quarter ending June 30, 1997, with a record number of 41
QUIZNO's Classic Subs franchises opened, which resulted in posting $672,500 in
initial franchise fees in second quarter 1997 compared to 13 openings and
$242,500 in fees for second quarter 1996.
QUIZNO'S continued its strong growth in revenue, including a 36% increase in
revenue from royalties from $395,286 to $537,360 and a 25% increase in revenue
from company store operations from $709,258 to $886,734 over the same period
in 1996.
The Company was profitable in its core business, including $103,631 from
franchise operations and $70,279 from company store operations.
Overall, the Company lost $49,356 or ($.02) per share, in the second quarter
1997 compared to a profit of $25,346 or less than $.01 per share, in second
quarter 1996. The Company reported a loss of $217,906 in first quarter 1997.
"We continue to improve our bottom line from quarter to quarter," said Richard
E. Schaden, president and CEO. "The improvement in bottom line is largely due
to strong and steady growth of our royalty stream from new store openings
which makes us less dependent on one-time fees for corporate profitability."
Fees collected from selling new Area Director territories were down to
$470,327 this quarter compared to $637,169 collected in second quarter 1996.
Overall corporate revenue was up 34% from $2,091,043 in second quarter 1996 to
$2,792,593 in second quarter 1997, and up 29% from $3,656,386 for the six
months ending June 30, 1996, to $4,698,795 for the six months ending June 30,
1997.
Systemwide sales were up 33% from $8.9 million in second quarter 1996 to $11.8
million in second quarter 1997. Thirty-six new franchises were sold during
second quarter 1997, bringing the total number of franchises currently sold
but not open to 170.
"Generally, we open franchises within 12 to 18 months of selling them," said
Schaden. "Based on that formula, it appears that we are on track to continue
our rapid pace of growth in number of units and revenue from royalties."
QUIZNO'S, a quick-service, Italian-style deli which serves signature oven
baked Classic Subs, has been a popular Denver-based chain for 16 years and has
grown from 18 restaurants open in 1991 when Rick Schaden and his father Dick
Schaden bought the Company to 214 restaurants open in 30 states and British
Columbia, Canada, today.
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This release contains forward-looking statements (as defined in the Private
Securities Litigation Reform Act of 1995) that are subject to risks and
uncertainties that could cause actual results to differ materially from those
set forth in the forward-looking statements. Such risks and uncertainties
include the effects of national and regional economic and market conditions,
the eating habits of the American public, cost of labor and employee benefits,
costs of marketing, intensity of competition for locations as well as
customers, perception of food safety, legal claims and the availability of
financing for the Company and its franchisees. Such risks are detailed from
time to time in the Company's reports filed with the SEC, including the report
on Form 10-KSB for the year ended December 31, 1996.
For more information, contact: Deb Leider, Corporate Communications line,
(303) 706-9338 or Sue Hoover, Sr. Vice President, marketing, The QUIZNO'S
Corporation, (303) 291-0999, ext. 3321
