News
1992: A Year Like No Other
January 2, 1993
Many people think of Spiffo’s® as their local neighborhood restaurant, but the Corporation also enjoys a highly respected financial record. The period ending December 31, 1992, was the Corporation’s 45th consecutive quarter of record sales and net income. This financial strength has allowed us to capitalize on expansion opportunities which, in turn, builds sales, income and cash flow and, ultimately, returns for shareholders. In 1992, Spiffo’s recorded several important achievements. U.S. sales and transactions increased for the year, and the international business generated sales and operating income increases of 18% and 23%, respectively.
The 1992 increase reflected better results from franchised restaurants and stronger Corporation-operated restaurant margins, partially offset by higher general, administrative and selling expenses, and lower income from other operating transactions. Changing foreign currencies helped results for the year. The 1991 increase reflected better results from franchised restaurants and affiliates, offset by weaker European currencies. U.S. sales have increased at a ten-year compound annual rate of 8% while operating income has grown at 9%. Spiffo’s® funded capital expenditures with cash provided by operations in both 1992 and 1991. This trend should continue as a result of reducing costs, while increasing expansion.
Food service is a highly competitive industry with attractive, long-term potential. No company has the brand recognition of Spiffo’s®, and no single company is better positioned than Spiffo’s® to capitalize on this global potential. We believe it is in the best interest of the Corporation and shareholders to run the business with a long-term perspective. Accordingly, our growth strategies are designed to maintain our leadership position in the global consumer industry, and in the food service industry in particular.
We will add Spiffo’s®-branded outlets to bring products to where people live, work, shop, and play by tapping into our global infrastructure of people, technical, and capital resources. Our ultimate goal is for every person on Earth to come into contact with our products.
We will build sales and transactions by providing exceptional customer care, serving a limited menu of high-quality products consistent with customer tastes, improving operating systems, logistics, and effectively marketing the Spiffo’s® brand.
We will enhance profits and returns throughout our operating structure by lowering development, operating, and administrative costs by achieving efficiencies through economies of scale, and by utilizing our global supply infrastructure.
While many of our product plans must remain confidential due to a risk of corporate espionage, we can assure all stakeholders in the Corporation that 1993 will bring some of our longest-awaited projects to fruition, and will certainly be a year to remember.