Restaurant Brands boosts sales as KFC performs

Tuesday 21st September 2010

Restaurant Brands New Zealand boosted second-quarter sales 3.7% on continued strong trading from its KFC stores.

Total store sales rose to $100.4 million in the three months ended Sept. 13 from $96.9 million in the same period a year earlier. On a same store basis, sales rose 3.9% to $97.2 million in the quarter. That takes its year-to-date sales to $176.3 million.

Shares in Restaurant Brands rose 0.8% to $2.53, a new record high, and have climbed 48% this year as new chief executive Russell Creedy managed to stymie the losses in the Pizza Hut brand and build on KFC’s success.

In July, chairman Ted van Arkel told shareholders the company expects to post a net profit, excluding non-trading items, of between $24 million and $26 million this year.

KFC led the charge, boosting revenue 6.7% to $72.8 million, and added three more stores giving it 87 outlets. The growth comes as six large stores were closed for between two and 11 weeks during the period as part of its rebranding programme.

Total sales at Starbucks fell 3.1% to $8.6 million in the quarter, though it did report a 2.4% gain in same store sales. Restaurant Brands closed three stores, taking its total outlets to 39.

Sales at the underperforming Pizza Hut brand fell 3.8% to $19.1 million, and dropped 2% on a same store basis. Four more stores were closed as the franchise owner continued to remove its dine-in restaurants.

Businesswire.co.nz

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