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Restaurant Brands counting on their chickens

Tuesday 1st June 2010

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Restaurant Brands has announced a 4.2% increase in sales on the back of sustained growth in its KFC brand, but its Starbucks and Pizza Hut outlets continue to underperform compared to its stable mate.

Total sales in the three months ended May 24 rose to $75.9 million from $72.8 million a year earlier, the company said in a statement. KFC accounted for $54.3 million, the highest quarterly total since the inception of Restaurant Brands in mid-1997.

For KFC this represents an 8.5% increase on the prior year and a 10.7% lift on a same store sales basis.

“The ongoing transformation programme, with consistency in store operations, wider menu options and a more focused approach to marketing following a closer alignment to the franchisor’s marketing programmes, all assisted in maintaining sales momentum,” said Restaurant Brands chief executive Russel Creedy.

Two more KFC outlets were opened during the year bringing the total to 86 stores.

Total sales for Pizza Hut fell 5.6% on the year first quarter compared to 2009 to $14.6 million, with same store sales declining 4.1% where store numbers were reduced by one to 91.

“While slightly disappointing, given the sales growth for the previous four quarters, it is worth noting that this quarter’s sales were rolling over the significant 5.2% same store sales increase in the prior year with the launch of Tuscani Pasta with associated media support,” Creedy said.

Starbucks Coffee’s total quarterly sales were down 4.7% on the prior year to $6.9 million, representing a fall of 1.8% on a same store sales basis.

Creedy said the sales decline has slowed and is expected to grow during the year on the back of new promotions and customer offers. Store numbers reduced by two during the year to now stand at 40.

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