Green Burrito Franchisees Settle Suit With Newport’s GB Foods
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NEWPORT BEACH — GB Foods Corp. said it has settled a lawsuit brought by a group of franchisees of GB’s Green Burrito fast-food restaurants.
The settlement provides 400,000 shares of common stock to be held in escrow for the plaintiffs, but no cash payments. The company did not say on Friday how many plaintiffs were involved or the nature of their lawsuit, and a spokesman could not be reached for comment.
The company said the litigation cost $2.9 million to defend and contributed to the bulk of $4.5 million in losses in 1994, compared with $5.1 million in 1993. Revenue was $6.6 million, up from $5.5 million in 1993.
Four stores were added in 1994 and same-store sales--measuring the sales of an existing store from one year to the next--increased 5%.
Shares of GB Foods, based in Newport Beach, closed unchanged Friday at $6 in trading on the Nasdaq.
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