Restaurant Brands first-half profit soars

Restaurant Brands New Zealand, which holds the franchise for KFC, Pizza Hut and Starbucks, posted a 240% increase in first-half profit on rising sales of chicken and the impact of impairment charges a year earlier.

Profit rose to $8.87 million in the six months ended September 14, from $2.6 million a year earlier, when the fast-food company took a $2.5 million charge to write down the goodwill in its pizza business. Sales rose 4.6% to $169.9 million, or up 6.7% on a same-store basis, it said in a statement.

Shares of Restaurant Brands climbed 5.3% to $1.40 and have soared 111% in the past 12 months after taking steps to curb losses at Pizza Hut and benefiting as the recession prompted people to trade down in the dining habits. Margins widened at both KFC and Pizza Hut as sales rose and the company reined in costs, it said.

Full-year profit will be about $15 million excluding non-trading items, it said.

Restaurant Brands will pay a first-half dividend of 4.5 cents a share, up from 3 cents a year earlier. 

Businesswire.co.nz

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