Blaze Fast-Fire’d Pizza reported same-store sales growth of 7 percent for fiscal 2015, the company said Friday.
The Pasadena, Calif.-based chain also tripled its sales for the Dec. 27-ended year to $101 million, compared with $33 million in fiscal 2014, with both numbers including sales by franchised units as reported to the company.
Blaze ended fiscal 2015 with 105 units, more than double the 50 units open at the end of 2014. Currently the chain has 116 locations open and Blaze expects to open another 96 units over the next 12 months, including expansion into 10 new states and markets in Boston, Denver, Salt Lake City, Phoenix and Atlanta.
Blaze is a privately held company that is mostly franchised, and it’s unusual for such companies to publicize results, though financial information is available in annual franchise disclosure documents.
But Blaze founder Rick Wetzel has made it clear the fast-casual pizza chain is considering an initial public offering at some point, possibly in 2017 or 2018.
“We want to be transparent because the goal is to go IPO,” he said.
Wetzel contends that Blaze’s annual unit volumes are among the highest in the fast-casual space, not just among pizza players.
Blaze’s AUVs dipped to $1.4 million for the 50 restaurants that have been open a full year at the end of December. That compares with AUVs reported the prior year of $1.6 million, but that number was based on only 10 restaurants open for a full year at the end of fiscal 2014.
Wetzel said the average unit volumes of the 10 restaurants in the 2014 base has actually increased to $1.7 million, indicating older units are continuing to grow sales.
Net income numbers were not available at press time, but Wetzel said they would be in updated franchise disclosures to be filed next month.
Jim Mizes, Blaze's president and chief operating officer, said it was the third consecutive year of positive same-store sales.
“We delivered strong performance in 2015 by successfully executing on our growth strategy,” he said in a statement. “This included improving our guest metrics, while simultaneously growing our restaurant count by 110 percent with 55 net new store openings.”
During 2015, Blaze investor, franchisee and NBA star LeBron James signed a multi-year endorsement deal.
The chain has been working to rid its ingredients of artificial colors, flavors and preservatives, as well as shifting to eco-friendly packaging, including a plant-based straw for drinks.
Earlier this week, Blaze launched a new mobile app that allows customers to order and pay via smartphone, as well as a new loyalty program that allows them to earn “flame” rewards toward a free pizza.
In 2016, the chain also expects to open a new 5,000-square-foot flagship restaurant at Walt Disney World in Florida.
Within five years, company officials have pledged to become the fifth largest pizza chain in the U.S., behind Pizza Hut, Domino’s, Little Caesars and Papa John’s.
Within the fast-casual pizza space, Blaze is the largest operator, competing head-to-head with MOD Pizza, which earlier this week announced a $32 million funding round led by private-equity investor PWP Growth Equity.
MOD Pizza has 110 units open and said same-store sales grew 12.4 percent in fiscal 2015 on revenues of $60 million. The Seattle-based chain is mostly company owned.
Meanwhile, others in the competitive fast-casual pizza space are reporting closures.
Pie Five parent Rave Restaurant Group Inc. closed three company units last year and the brand’s same-store sales declined 1.6 percent for its Dec. 27-ended second quarter.
Pizza Studio has pulled out of the Tucson, Ariz., market, according to the Arizona Daily Star.
“The shakeout has started,” said Wetzel. “There were too many guys on the field.”
Contact Lisa Jennings at [email protected].
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