Healthy Fast Food Announces Third Quarter 2010 Results

HENDERSON, Nev., Nov. 12, 2010 /PRNewswire-FirstCall/ -- Healthy Fast Food, Inc. (OTC Bulletin Board: HFFI), parent to U-SWIRL International, Inc., the owner and franchisor of U-SWIRL Frozen Yogurt® cafes, today announced its third quarter financial results for the three and nine months ended September 30, 2010.

Financial Highlights For Nine Months Ended September 30, 2010 Compared to Nine Months Ended September 30, 2009:

• Total revenues rose 134% to $2,163,134 from $925,603.
  • As of September 30, 2010, there were a total of six Company-owned cafes in operation – one opened in the first quarter ended March 31, 2009; one opened in the second quarter ended June 30, 2009; three opened in the third quarter ended September 30, 2009; and one opened mid-way through the first quarter ended March 31, 2010.
  • In addition, the Company had two franchised cafes in operation as of September 30, 2010 – one located in Henderson, Nevada which does not pay royalties; and one in Reno, Nevada which pays a royalty fee equal to 3% of weekly sales.
• Cafe operating profits, excluding pre-opening expenses attributable to training, supplies and various grand-opening promotional activities, increased 160% to $680,871 from $262,161
• After factoring $352,630 in non-cash expenses related to share-based compensation, depreciation and amortization offset by a $74,481 gain from on discontinued operations compared to $123,539 in similar non-cash expenses and a $1,155,053 loss on discontinued operations, the net loss declined 80% to $359,416, or $0.12 per basic and fully diluted share, from a net loss of $1,786,228, or $0.71 per basic and diluted share.  

Financial Highlights for Three Months Ended September 30, 2010 Compared to Three Months Ended September 30, 2009:

• Total revenues increased 43% to $760,403, up from $530,332.
• Excluding pre-opening expenses attributable to training, supplies and various grand-opening promotional activities, cafe operating profits totaled $241,600, rising 72% from $140,438.
• Net loss declined 95% to $57,705, or $0.02 per basic and fully diluted share, from $1,233,612, or $0.49 per basic and fully diluted share.

For more detailed information on the financial results, please refer to the financial charts reflected below and the Form 10Q filed with the U.S. Securities & Exchange Commission on November 12, 2010.  

Operational Highlights:

• U-SWIRL's Facebook fan base has recently surpassed 10,000, growing more than 30% from 7845 fans reported as of the end of the prior quarter.  
• In July, the Company signed an area development agreement with Regents Management, LLC, providing for the expansion of the U-SWIRL self-serve concept into Boise Idaho, with the first cafe scheduled to open in that metropolitan market before the end of this year.
• In August 2010, the Company announced that River Jordan, Inc. signed a new franchise agreement with plans to open a U-SWIRL self-serve frozen yogurt cafe in Marietta, Georgia, one of metro Atlanta's largest suburbs.
• Subsequent to the end of the third quarter, the Company signed a second area development agreement with Regents for a minimum of five stores in Salt Lake City, Utah; Galena Frozen Yogurt hosted the grand opening of its second U-SWIRL cafe serving Reno, Nevada; and in late October, Healthy Fast Food completed a secondary offering, raising total gross proceeds of $690,000, which will be used to develop the seventh Company-owned U-SWIRL cafe.  

Commenting on the results, Hank Cartwright, Chairman and CEO of Healthy Fast Food, stated, "Our Company continued to make solid progress on many fronts in the third quarter, increasing revenues, expanding our U-SWIRL national franchise network and completing our capital raise.  With a number of new franchise locations currently in construction or undergoing development, we expect to finish 2010 on very strong footing and, in the year ahead, look forward to perpetuating and accelerating the growth momentum we are now enjoying."

ABOUT U-SWIRL INTERNATIONAL, INC.

U-SWIRL International is a wholly owned subsidiary of Healthy Fast Food, Inc., and is launching a national chain of self-serve frozen yogurt cafes called U-SWIRL Frozen Yogurt®.  U-SWIRL allows guests the ultimate choice in frozen yogurt by providing up to 20 non-fat flavors, including tart, traditional, no sugar-added options, and up to 70 toppings, including seasonal fresh fruit, sauces, candy and granola.  Guests serve themselves and pay by the ounce instead of by the cup size.  A healthier alternative to a coffee shop hang out, locations are furnished with couches and tables, and patio seating.  In addition to its development of Company–owned cafes, U-SWIRL International has also launched its franchise program to roll out the concept nationwide in those states in which the Company is qualified to offer franchises.

ABOUT HEALTHY FAST FOOD, INC.

Headquartered in Henderson, Nevada, Healthy Fast Food, Inc. is on a mission to deliver consumers a smarter alternative to America's favorite meals and snacks. In September 2008, the Company and its wholly-owned subsidiary, U-SWIRL International, Inc., acquired the worldwide rights to the U-SWIRL Frozen Yogurt system.  Sole ownership of the system was transferred to U-SWIRL International, Inc., and it has been executing an aggressive strategy to build the brand into a globally recognized chain of highly experiential frozen yogurt cafes. For more information, please visit www.U-SWIRL.com.  You can also follow the Company on Facebook (U-SWIRL Frozen Yogurt) and on Twitter (U_SWIRL).  

Special Note Regarding Forward-Looking Statements

This press release contains forward-looking statements regarding the timing and financial impact of Healthy Fast Food, Inc.'s  ability to implement its business plan, expected revenues and future success.  These statements involve a number of risks and uncertainties and are based on assumptions involving judgments with respect to future economic, competitive and market conditions and future business decisions, all of which are difficult or impossible to predict accurately and many of which are beyond the Company's  control.  Some of the important factors that could cause actual results to differ materially from those indicated by the forward-looking statements are general economic conditions, failure to achieve expected revenue growth, changes in our operating expenses, legal developments, competitive pressures, changes in customer and market requirements and standards, and the risk factors detailed from time to time in Healthy Fast Food's  periodic filings with the Securities and Exchange Commission, including without limitation, the Company's Annual Report  for the year ended December 31, 2009. The forward looking-statements in this press release are based upon management's reasonable belief as of the date hereof.  Healthy Fast Food undertakes no obligation to revise or update publicly any forward-looking statements for any reason.

SOURCE Healthy Fast Food, Inc.

WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM?

440k+
Newsrooms &
Influencers

9k+
Digital Media
Outlets

270k+
Journalists
Opted In

GET STARTED