Sharechat Logo

Restaurant Brands predicts flat annual profit, holds interim dividend

Friday 26th October 2012

Text too small?

Fast-food franchise operator Restaurant Brands is forecasting a flat annual profit after reporting a mixed first-half result which included higher costs ahead of the startup of Carl's Jr stores.

Net profit rose 2.4 percent to $8.8 million in the six months ended Sept. 10 on a 0.2 rise in group revenue.

Including non-trading items, profit fell 9.2 percent to $6.9 million. The $2.9 million of non-trading items included a writedown of goodwill and store closure costs, and was up from $1.7 million the previous year.

The company is forecasting annual profit before non-trading items in the vicinity of $18 million, little changed from the $18.4 million reported last year.

The shares fell 0.8 percent to $2.44, and have climbed 20 percent this year.

The board declared a first-half dividend of 6.5 cents a share, unchanged from last year, and payable on Nov. 23.

General and administration costs of $7.2 million rose 17 percent due to the cost of establishing the Carl Jr brand. Three stores are expected to open in the second half of the year and the company expects them all to be immediately profitable.

The Pizza Hut brand performed significantly better than last year but Starbucks Coffee experienced a decline in sales and margins. Pricing changes, revised beverage formulations and a revamped food range are expected to turn Starbucks around.

The KFC brand is facing higher input costs in the second half but the chain will be boosted by new "fusion" stores.

The directors said they were comfortable with the overall trading result in a continuing challenging retail environment and they were particularly pleased with the performance of the Pizza Hut brand.

The group had total sales of $167.2 million in the first half, up from $166.8 million in the same period last year.

BusinessDesk.co.nz



  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

Restaurant Brands' 2Q sales rise 6.2 percent , led by Carl's Jr outlets
Is this the beginning of end for Starbucks?
Restaurant Brands bets on new brands to drive future earnings growth
Restaurant Brands expects 2014 profit will be marginally ahead of 2013
Restaurant Brands lifts 1st quarter sales 3.9 percent after adding Carl's Jr stores
Restaurant Brands scotches talk of buying Western Australian KFC stores
Restaurant Brands annual profit slips 4.5 percent, sees bigger earnings in 2013
Restaurant Brands 4th-qtr sales rise 4.5 percent as Carl's Jr makes up for Starbuck’s dip
Restaurant Brands 3Q sales creep higher
Restaurant Brands' 2Q sales rise 2.3 percent on Pizza Hut, KFC