Chanticleer Holdings’ losses double in 2nd quarter
08/15/2014 4:03 PM
08/15/2014 4:04 PM
Charlotte-based Chanticleer Holdings said its losses doubled in the second quarter from the same period a year ago as costs associated with additional restaurant investments drove up expenses.
The investment company, whose business model is to own and operate Hooters and other restaurants, posted a loss of $1.4 million in the recent second quarter, according to a securities filing Friday.
That compares with a loss of $706,944 in the same quarter last year.
Chanticleer continues to acquire restaurants and increase its ownership in others as it strives to achieve profitability. But expenses stemming from the company’s growth have weighed on earnings and offset higher revenue.
Expenses totaled $8.4 million in the second quarter, up more than 250 percent from a year ago.
The company attributed the higher expenses in part to acquisitions of Hooters restaurants in the Northwest and an increase in its ownership of a Hooters in Australia. Those two deals both took place this year.
Chanticleer was founded in 2005. It employs roughly 800 people worldwide, including 130 in Charlotte.
The company’s sole focus of owning and operating Hooters outside the U.S. changed last year when Chanticleer began acquiring other restaurants, starting with Charlotte-based American Roadside Burgers.
Chanticleer said at the time of the American Roadside purchase that it would mean another brand to introduce to other countries as a way to grow revenue.
Other recent investments include a majority stake Chanticleer acquired last year in the companies that own the Charlotte-based Just Fresh restaurant chain.
Chanticleer’s revenues have risen as it has acquired additional restaurants.
Second-quarter revenue totaled $6.9 million, up more than 300 percent from the same period last year.
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