Restaurant Brands boosts profit
Increases sales of KFC fried chicken increases first half profit.
See also: Fast food fans fatten Restaurant Brands' coffers
Restaurant Brands New Zealand [NZX: RBD] boosted first-half profit 17% on increased sales of fried chicken at KFC and more Carl's Jr stores.
Profit rose to $13.4 million in the 28 weeks ended September 14, up from $11.5 million in the same period a year earlier, the company says.
Total store sales rose 13% to $210 million, while on a same-store basis sales increased 6.7% to $192 million. It had a total of 180 stores across its KFC, Carl's Jr, Starbucks Coffee and Pizza Hut brands, six more than a year earlier.
The board declared a first-half dividend of 8.5c per share, up from 7.5cps a year earlier.
Its KFC brand, which makes up more than two thirds of revenue, increased earnings before interest, tax, depreciation and amortisation 18% to $30.9 million.
Restaurant Brands has been refurbishing stores and spending more on marketing, including KFC's successful promotion of the Double Down option and the Family Favourites Bucket.
Carl's Jr, the company's newest brand, reported static ebitda of $100,000. The company doubled the number of stores to 18, as it opened new shop fronts and brought back stores under its management from franchisees.
Pizza Hut ebitda fell 13% to $2.8 million. The company is exiting stores in line with its plan to sell underperforming outlets to franchisees, and had reduced its total to 44 at balance date from 49 a year earlier.
Starbucks ebitda rose 6.9% to $2.2 million, as the chain benefited from better value and improved customer experience initiatives implemented over the past two years.
Restaurant Brands says the momentum in the first half has continued through to the third quarter, and it expects annual profit will be in excess of $24 million. In April the company reported annual profit rose 19% to $23.8 million.
The shares last traded at $4.16 and have gained 20% over the past 12 months.
(BusinessDesk)
Suze Metherell
Thu, 29 Oct 2015
Thu, 29 Oct 2015
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Restaurant Brands boosts profit
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