KFC sales shows improvement

Friday 5th March 2004

Restaurant Brands' investors breathed a sigh of relief yesterday as fourth-quarter sales showed a significant improvement in the company's KFC business.

Total sales for KFC, Pizza Hutt and Starbucks stores were $69.9 million, up 1.8% on the same period a year ago.

However, the company said a warm summer, slower promotion and lower levels of ad spend saw Pizza Hut same-store sales decline 0.4% in the final quarter.

Total Starbucks sales reached a record $5.6 million for the quarter, an increase of 2.8% over the previous year.

Although Pizza Hutt stores lost ground, the battling KFC business halted its declining sales, recording a flat $39.2 million. Same-store sales declined 0.1% compared with a 6.8% drop in the third quarter.

However, same-store sales were still down 2.3% on last year's corresponding period.

Chief executive Vicki Salmon said recent efforts to improve performance at KFC and Starbucks were beginning to pay off.

"We have invested a significant amount of effort in returning the company to positive growth in sales and are encouraged by the early response we have received to recent product promotions and marketing efforts.

"While we still have a lot of work ahead of us, we believe the company now has a solid platform for future expansion.

Restaurant Brands will announce its full year profit result at the end of the month. At press time the Restaurant Brands shares had last traded at $1.21, up 1c.

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