Restaurant Brands fourth-quarter sales down 1.8%

Tuesday 8th March 2011

Restaurant Brands' sales fell 1.8% in the fourth quarter to $73.9 million, as leading brand KFC saw its same store sales decline in the period.

For the group as a whole, same store sales for the 12 weeks to the end of February were 2.5% lower than a year earlier.

KFC's total revenue rose $500,000 to $54.2 million, but same store sales fell 2.6% in the quarter from a year earlier.

Reasons for the decline included the size of the same store fourth quarter gain in the previous three years, not passing on the full extent of the October GST rise to customers, and continuing softness in retail spending, Restaurant Brands said today.

The business also had considerable disruption, and some sales cannibalisation, from its capital programme which saw four new store openings in the past year.

In Christchurch, seven KFC stores closed after the February 22 earthquake, losing a week's sales worth more than $400,000. Five of the stores were expected to reopen next week.

Pizza Hut sales fell 11% in the quarter from a year earlier to $12.6 million, as the number of company-owned stores declined. On a same store bases the fall in sales was 4.2%. Store numbers declined by three during the quarter to 82, down nine on last year, the company said.

The closure of eight Pizza Hut stores due to the earthquake lost more than $100,000 in sales for the week. Four stores were expected to reopen next week.

Starbucks Coffee quarterly sales were down 4.2% to $7.1 million, but with four fewer stores, same store sales were up 1.2%.

The growth in same store sales at Starbucks in the latest quarter resulted from improving operational focus and a rejuvenated Christmas merchandising range, Restaurant Brands said.

The closure of four Starbucks in Christchurch after the earthquake lost $100,000 for the week. Only one of those stores was expected to be able to reopen next week.

For the year, total sales at Restaurant Brands were 2.1% higher than a year earlier at $324.4 million.

Annual sales at KFC were up 5.6% to $235.8 million, and up 4.4% same store. Pizza Hut full year sales fell 7.6% to $59.3 million, with same store down 3.8%. Starbucks full year sales fell 3.8% to $29.3 million, with a same store rise of 0.8%.

Restaurant Brands shares were down 7c to $2.34 about an hour after the sharemarket opened, having ranged between $2.85 and $1.85 in the previous year.

NZPA

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