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Restaurant Brands first-quarter sales jump 15%, driven by KFC, Carl's Jr

Thursday 4th June 2015

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Restaurant Brands, New Zealand's largest fast food store operator, increased first quarter sales 15 percent as revenue jumped at fried chicken outlet KFC, its largest unit, and it added more stores to burger chain Carl's Jr.

Sales rose to $89.1 million in the 12 weeks ended May 25 from $77.7 million in the year earlier period, the Auckland based company said in a statement. Same store sales, which excludes changes in store numbers, increased 7.6 percent, it said.

The company's KFC unit, which accounts for almost three quarters of sales, boosted revenue 13 percent to $64.4 million in the quarter, ahead of the 5.2 percent pace a year earlier, as it refurbished stores, stepped up marketing and extended the chain's opening hours. It added one store in Albany, taking the total in the chain to 92, and excluding this addition, same store sales rose 9.8 percent.

"Successful promotions in the quarter were the 'Super Zinger Burger', 'Zinger Stacker Burger', the innovative 'Crispy Burrito' as well as a highly successful 'Super Bucket' with a free rugby ball as part of the KFC New Zealand Super Rugby teams’ sponsorship," the company said.

Shares in Restaurant Brands rose 1.4 percent to a two week high of $4.44, and have gained 19 percent so far this year.

Carls Jr, the company's newest brand, more than doubled sales to $8 million from $3.7 million after it added 10 stores to the chain, taking the total to 18. Same store sales slipped 5.2 percent, compared with a 36 percent drop in the year earlier period. Some stores showed positive growth while others rolled over high opening period sales, the company said.

Pizza Hut sales fell 7.6 percent to $10.5 million as the company exited four stores in line with its plan to sell underperforming outlets to franchisees, taking its total to 46. Same store sales slipped 0.5 percent as the year earlier period was boosted by a 'Hot Dog Stuffed Crust' promotion. Some 43 Pizza Hut stores are now operated by independent franchisees.

The company's Starbucks Coffee chain increased sales 6.6 percent to $6.1 million even as it had one fewer store than the year earlier period, taking its total to 26. Same store sales jumped 8.9 percent, ahead of the 5.5 percent increase in the year earlier period, as the chain benefited from better value and improved customer experience initiatives implemented over the past two years, it said.

 

 

 

 

BusinessDesk.co.nz



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