TORONTO — Following news that Freshii Inc.’s growth has been slower than expected — resulting in the closure of some stores and a reduced target for net openings this year — the brand’s shares have dropped, reports the Canadian Press.
The Toronto-based company’s revised outlook was announced late Monday after the stock market closed. The stock (TSX:FRII) was down 36 per cent at $5.67 in the first minutes of trading on Tuesday.
Freshii says it now expects between 90 and 95 net new openings for its 2017 financial year ending late December, down from the previous target of between 150 and 160 net openings. The company now estimates there will be 369 to 376 Freshii stores system wide by December.
The chain closed 17 of its non-traditional locations in Target department stores in the third quarter. One additional Freshii Target store will close by the end of this year.
Freshii also says expansion in the U.K. and several U.S. states has been slower than expected because its multi-unit franchisees have been more conservative in their real-estate selection than the company anticipated. Freshii has also scaled back its expansion targets through to the end of fiscal 2019 — to reflect a more cautious estimate for multi-unit franchisees — to between 730 and 760 stores (down from 810 to 840 stores).