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: May 16, 2000
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.)
1415 Larimer Street, Denver, Colorado 80202
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (303) 291-0999
None
(Former name or former address, if changes since last report)
Item 5. Other Events. Press Release Announcing Quizno's Posts Profit in 2nd
Fiscal Quarter.
Exhibits
Exhibit 99.1 Press Release, dated May 16, 2000.
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 19, 2000 By: /s/ John L. Gallivan
--------------------
John L. Gallivan
Chief Financial Officer
Exhibit 99.1
QUIZNO'S(R) Posts Profit in 2nd Fiscal Quarter
DENVER, CO - May 16, 2000 - The Quizno's Corporation (Nasdaq: QUIZ)
posted $129,709 net income applicable to common shareholders, or $.04 per
diluted share, in its 2nd fiscal quarter ended March 31, 2000. The profit
compares to $652,446 net income applicable to common shareholders, or $.24 per
diluted share, in the same three months ended March 31st, 1999. One-time
proceeds from awarding master franchise rights to Japan were recorded in the
period a year ago.
Revenue increased 58 percent to $9.7 million in the 2nd quarter over
$6.2 million in the same period a year ago. That included an increase of 55
percent in continuing fees, consisting of royalties and licensing fees, which
grew from $2.5 million in the period a year ago to $3.9 million in the period
just ended March 31, 2000.
Company stores earned $376,132 on sales of $3.8 million in the 2nd
quarter of 2000 compared to $183,564 on sales of $2 million in the same period
last year. There were a total of 32 Company stores at the end of March 31, 2000,
compared to 24 at the end of March 31, 1999.
A total of 88 new QUIZNO'S Subs restaurants, including 10 international
locations, were opened in the three months ending March 31, 2000, and a total of
103 new franchises were sold in the period, including 16 internationally.
System wide sales were $63.9 million, up 75 percent, in the 2nd fiscal
quarter over $36.5 million in the same period of 1999. Same store sales were up
7.8% in the period ending March 31, 2000, over the same period in 1999.
The Company also announced today that Mark Laramie, Chief Operating
Officer for the last year and a half, is no longer with the Company, effective
May 10, 2000.
The Company, which owns and operates and franchises QUIZNO'S Classic
Subs restaurants, has grown from 18 restaurants in Denver in 1991 to more than
800 open today across the U.S. and in Puerto Rico, Canada, Japan, Costa Rica and
Australia.
Certain information in this release are forward-looking statements that involve
risks and uncertainties that might adversely affect the Company's operating
results in the future in a material way. Such risks and uncertainties include,
without limitation, the effect of national and regional economic and market
conditions in the U.S. and the other countries in which we franchise
Restaurants, costs of labor and employee benefits, costs of marketing, the
success or failure of marketing efforts, costs of food and non-food items used
in the operation of the Restaurants, intensity of competition for locations and
Franchisees, as well as customers, perception of food safety, spending patterns
and demographic trends, legal claims and litigation, the availability of
financing for the Company and its Franchisees at reasonable rates, the
availability and cost of land and construction, legislation and governmental
regulations, and accounting policies and practices. Many of these risks are
beyond the control of the Company. 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 September 30, 1999.
For More Information Contact:
Sue Hoover, EVP Corporate Communications
The Quizno's Corporation
720-359-3374
