Restaurant Brands rings Taco Bell brand

Friday 19th January 2001

By Campbell McIlroy

Listed fast food company Restaurant Brands is planning future expansion with its Taco Bell brand, chief executive Jim Collier says.

The company returned a net profit after tax, excluding abnormal items, of $12.6 million for the year to November 30, 2000, compared with $13 million last year.

The company put its 3% dip in after-tax profit down to the cost of the acquisition of the Eagle Boys chain which it swallowed last year.

Mr Collier conceded that while it had enjoyed eight consecutive quarters of sales growth, up 8.8% to $234.1 million, sales would not have increased as much without the Eagle Boys purchase.

The acquisition resulted in a one-off after-tax charge of $2.8 million in the latest result.

He said although margins in the Pizza Hut chain were close to pre-acquisition levels it would be mid-year before the chain settled down completely.

Restaurant Brands also owns the rights to the Taco Bell chain in New Zealand and is closely watching trials in Sydney.

But Mr Collier said as Mexican food was not a mainstream fast food in New Zealand, it would still be some time before the company looked at introducing the brand here.

With one eye watching the Australian taco trial, Mr Collier said he was also well aware of the highly competitive Aussie pizza market.

Mr Collier said there was always the risk of a competitor jumping the Tasman but Pizza Hut's national network of 82 stores and sizeable advertising budget would be pause for thought for any potential rival.

And while he would never say never to a possible move for Restaurant Brands across the Tasman, the company was focused on getting the Pizza Hut and Starbucks brands settled and there were no immediate plans to expand across the ditch.

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