Restaurant Brands full year profit up 26%

Thursday 7th April 2011

Restaurant Brands recorded a 26% rise to $25.1 million in full year net profit, excluding non-trading items, with most of the rise due to good performance by the KFC brand.

For the year to February 28 the company had a 2.1% rise in revenue to $324.9 million, with same store sales up 2.4%.

A final fully imputed dividend of 10c per share is to be paid, making a full year dividend of 17cps, up 4.5cps on the year before.

KFC sales were up 5.6% to $235.8 million, and up 4.4% on a same store basis, with earnings before interest, tax, depreciation and amortisation (ebitda) up 12.7% to $52.1 million.

At Pizza Hut sales fell 4.9% to $59.3 million, with the company having nine fewer stores, while ebitda lifted 4.3% to $5.6 million.

Starbucks Coffee sales fell 3.8% to $29.3 million, although up 0.8% on a same store basis, with ebitda up 27.3% to $4.1 million.

While Restaurant Brands had its best ever trading profit in the 2010/11 financial year, the latter half of the year saw a deterioration in trading conditions with a much softer retail environment, the company said.

The marketplace would remain tough in the current financial year, with strong competition for an increasingly scarce consumer dollar. Some improvement was expected during the year, particularly with the Rugby World Cup at the start of the third quarter of the financial year.

Restaurant Brands' bottom line profit was up 24.4% to $24.3 million.

The company's shares were up 2c in early trading to $2.39.

NZPA

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