TORONTO - The Freshii restaurant chain says its growth has been slower than expected, resulting in the closure of some stores and a reduced target for net openings this year.
The revised outlook was announced late Monday after shares of the Toronto-based company (TSX:FRII) closed at $8.86. The stock began trading publicly in January at $12 after a $125-million initial public offering of its stock.
Freshii says it now expects between 90 and 95 net new openings for its 2017 financial year ending Dec. 31, down from the previous target of between 150 and 160 net openings including closures.
It now estimates there will be 369 to 376 Freshii stores systemwide by Dec. 31, up from 345 as of Sunday.
It closed 17 of its non-traditional locations in Target department stores in the 13 weeks ended Sept. 24, which was the third quarter of fiscal 2017. One additional Freshii Target store will close by the end of this year.
Freshii also says that expansion in the United Kingdom and several U.S. states has been slower than expected because its multi-unit franchees have been more conservative in their real estate selection than the company anticipated.
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