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Restaurant Brands sales rise 5.3%, led by KFC turnover

Friday 5th March 2010

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Restaurant Brands New Zealand boosted its fourth-quarter sales 5.3% on the back of strong trading in its KFC stores.

Total stores sales were $75.3 million in the three months ended March 1, compared to $71.5 million in the same period a year earlier, the Auckland-based company said in a statement. KFC outlets lifted total sales 8.7% to $53.6 million, while Pizza Hut revenue edged down 0.2% to $14.2 million and Starbucks income dropped 5.6% to $7.4 million.

“The current economic downturn and slow recovery have not adversely affected sales growth,” the company said in a statement. The 5.3% growth in the final quarter exceeded the 4%-5% pace achieved in the first nine months of the year, it said.

Restaurant Brands yesterday said its full-year profit surged 67% to about $19.5 million, or 20 cents per share, for the 12 months ended February 28. It will formally release its result on April 7. The shares fell 1.5% to $1.95 on the NZX today, having jumped on the earnings news yesterday.

Pizza Hut, which has caused the company headaches for several years as the pizza market became saturated with new entrants such as global chain Domino’s Pizza, made four consecutive gains in same-store sales.

Same store revenue grew 3.9% to $63.9 million in the full year. Starbucks was the weakest brand for the franchise holder this year, and Restaurant Brands said it will keep working on pricing, product mix and promotional activity.

The firm opened a new KFC store in Greenlane, Auckland, while closing down two Pizza Hut outlets and one Starbucks cafe.

Businesswire.co.nz

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