Restaurant Brands boosts 1H profit 17% on fried chicken, burger sales

Thursday 29th October 2015

Restaurant Brands New Zealand, the country's largest listed fast food operator, boosted first-half profit 17 percent on increased sales of fried chicken at KFC and more Carl's Jr stores.

Profit rose to $13.4 million in the 28 weeks ended Sept. 14, up from $11.5 million in the same period a year earlier, the Auckland based firm said. Total store sales rose 13 percent to $210 million, while on a same-store basis sales increased 6.7 percent to $192 million. It had a total of 180 stores across its KFC, Carl's Jr, Starbucks Coffee and Pizza Hut brands, six more than a year earlier.

The board declared a first-half dividend of 8.5 cents per share, up from 7.5 cps a year earlier.

Its KFC brand, which makes up more than two thirds of revenue, increased earnings before interest, tax, depreciation and amortisation 18 percent to $30.9 million. Restaurant Brands has been refurbishing stores and spending more on marketing, including KFC's successful promotion of the Double Down option and the Family Favourites Bucket.

Carl's Jr, the company's newest brand, reported static ebitda of $100,000. The company doubled the number of stores to 18, as it opened new shop fronts and brought back stores under its management, buying them from franchisees.

Pizza Hut ebitda fell 13 percent to $2.8 million. The company is exiting stores in line with its plan to sell underperforming outlets to franchisees, and had reduced its total to 44 at balance date from 49 a year earlier.

Starbucks ebitda rose 6.9 percent to $2.2 million, as the chain benefited from better value and improved customer experience initiatives implemented over the past two years, it said.

Restaurant Brands said the momentum in the first half had continued through to the third quarter, and it expected annual profit would be in excess of $24 million. In April the company reported annual profit rose 19 percent to $23.8 million.

The shares last traded at $4.16 and have gained 20 percent over the past 12 months.

BusinessDesk.co.nz

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