UNITED STATES
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 14, 1998
THE QUIZNO'S CORPORATION
(Exact name of registrant as specified in its charter)
Colorado 000-23174 84-1169286
(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
1099 18th Street, Suite 2850, Denver, Colorado, 80202
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (303) 291-0999
Item 5. Other Events. Other event
Press release regarding 1st quarter profit and revenue.
Exhibit No. Description Reg. S-K 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: May 15, 1998 By:/s/ John L. Gallivan
John L. Gallivan, Chief Financial
Officer
<PAGE>
EXHIBIT INDEX
Exhibit No. Description Reg. S-K Item No.
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*99.1 Press release 1
FOR RELEASE: THURSDAY 6 A.M. MDT, MAY 14, 1998:
------------------------------------------------
QUIZNO'S POSTS 1ST QUARTER PROFIT OF $141,679
& DOUBLES REVENUE OVER 1ST QUARTER 1997
DENVER, Colo. - The Quizno's Corporation (Nasdaq: Quiz) announced today it
posted earnings before preferred stock dividends of $141,679, or $.03 basic
and diluted earnings per share, for 1st quarter ending March 31, 1998. The
earnings marks the third profitable quarter in a row for the Company, which
franchises and operates QUIZNO'S Classic Subs restaurants.
Last year during the same quarter ending March 31, 1997, QUIZNO'S showed a
loss before preferred stock dividends of $217,906, or ($.08) basic and
diluted loss per share.
Income from QUIZNO'S core business of franchise operations, was $301,032 for
1st quarter 1998, compared to an income of $7,272 in the same period in 1997.
Income from Company-owned restaurants increased to $107,384 in 1st quarter
1998, compared to income of $966 for the same period in 1997. The total
income of $408,416, less other charges of $257,593, resulted in net income
for the quarter of $141,679.
Revenue for 1st quarter more than doubled in 1st quarter 1998 to $4.2 million
over $1.9 million in 1997. Revenue from royalties increased nearly two and a
half times from $469,125 in 1st quarter 1997 to $1.1 million in 1st quarter
1998. Revenue from Company-owned stores nearly tripled from $612,740 in 1st
quarter 1997 to $1,741,408 in 1st quarter 1998.
Also in 1st quarter, the Company sold all the Area Director rights for Canada
to Quizno's Canada Corporation, recording $573,000 in revenue in 1st quarter.
In late 1997, the Company signed a master franchise agreement with Quizno's
Canada. The Quizno's Corporation, however, retains the rights to a percentage
of all unit-level royalties collected in Canada.
As was previously announced, QUIZNO'S also recorded strong new franchise sales
in 1st quarter, collecting $1.8 million in fees for the sale of 145 new
franchises.
"All in all, we are very pleased with the results of 1st quarter," said Rick
Schaden, President and CEO. "Our store openings and growth in revenue, and
our performance at both the Company and the store levels, were very strong."
The Company opened 39 new QUIZNO'S Classic Subs restaurants in 1st quarter.
Same Store Sales for 1st quarter 1998 were 9.4 percent over sales in 1st
quarter 1997.
QUIZNO'S, an Italian-style deli founded in 1981 in Denver, serves signature
oven baked Classic Subs. The chain has grown from a Denver-based regional
chain of 18 restaurants in 1991 to a having 362 restaurants open today in 35
states, Puerto Rico and Canada.
<PAGE>
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 effect of national and regional economic and market conditions,
the eating habits of the American and Canadian public, cost of labor and
employee benefits, cost of marketing, intensity of competition for locations,
franchisees and 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, 1997.
FOR MORE INFORMATION CONTACT:
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Sue Hoover, Sr. VP, Marketing
The Quizno's Corporation
303-291-0999, Ext. 3242
Or
Phil Huss, Phoenix Alliance, Inc.
970-259-7241
