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):
May 16, 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 first quarter results.
Reg. S-K
Exhibit Item
No. Description No.
*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: May 27, 1997 By: /s/ Richard E. Schaden
Richard E. Schaden, President and Chief
Executive Officer
EXHIBIT INDEX
Exhibit
No. Description Page
*99.1 Press release
1
For release 6 a.m. MDT Friday, May 16, 1997
Quizno's Announces 1Q loss; profitable again in core businesses
DENVER, Colo._The QUIZNO's Corporation (Nasdaq: QUIZ) announced it
lost $217,906 or ($.08) a share in the first quarter of 1997 ending
March 31, compared to a loss of $193,048 or ($.07) a share in the
same period in 1996. The Company, which franchises and operates
QUIZNO's Classic Subs restaurants, continued its aggressive national
expansion and showed a first quarter operating profit in franchise
and company store operations, as it did for the entire year in 1996.
First quarter 1997 profits from franchise operations were $7,272,
compared to a loss of $6,229 in first quarter 1996. Net income from
company stores was $966 compared to $9,567 last year.
Revenue from royalties increased 47% to $469,125 in first quarter
1997 over $318,935 in the same period 1996. Overall revenue
increased 22% to $1.9 from $1.6 million.
QUIZNO's opened 16 new restaurants in first quarter and signed 14 new
Area Director agreements, 6 of which were expansions of existing Area
Director territories.
Franchise sales continued to be brisk in first quarter 1997, with 42
new franchises sold compared to 24 in the first quarter 1996.
The strong franchise sales in the first quarter of 1997 accounted for
a positive cash flow from operations of $146,600 compared to cash
used in operations of $356,089 last year, an improvement of $502,689.
Systemwide sales were up 30% to $9.5 million in first quarter 1997
over $7.2 million in first quarter 1996.
"We continue on track to reach significant growth milestones in
1997," said Rick Schaden, president and CEO of QUIZNO's.
In April, the Company announced it anticipated being the third
largest sub chain in the country by the end of this year. It also
anticipated reaching a level of revenue from royalties in 1997 that
would begin and continue to cover general and administrative costs
used to support the franchise system.
In first quarter of 1997, the Company also implemented a turnkey
program, under which the Company builds out QUIZNO's restaurants and
then sells them to franchisees who can open immediately for business.
Eight regional shopping mall food court units are under development
through this program with plans to open them in early summer.
This release contains forward-looking statements (as defined in the
Private Securities Litigation Reform Acts 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 effect of national and
regional economic and market conditions and the eating habits of the
American public. 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.
Contact: Sue Hoover/Deb Leider, Corporate Communications (303) 706-
9338 or John Gallivan, CFO (303) 291-0999.
