Restaurant Brands first-half sales rise 13% on demand for KFC, more Carl's Jr stores

Restaurant Brands [NZX: RBD], the country's largest listed fast food operator, boosted first-half sales 13% on an increase in sales of fried chicken at KFC and more Carl's Jr stores.

Total store sales rose to $210 million in the 28 weeks ended September 14, from $185.7 million a year earlier, the Auckland-based company said in a statement. 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.

Its KFC brand, which makes up more than two-thirds of revenue, increased total store sales 12% to $153.2 million while same-store sales rose 8.8%. 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, increased total store sales 108% to $18.4 million, but on a same-store basis sales slipped 6.8% to $8.2 million. The company doubled the number of stores to 18 as it opened new shopfronts and brought back stores under its management, buying them from franchisees.

Pizza Hut sales fell 7.3% to $24.5 million on a total store basis, while same-stores sales slipped 0.4% to $23.9 million. The company is exiting stores in line with its plan to sell underperforming outlets to franchisees, and had reduced it to 44 at balance date from 49 a year earlier.

Starbucks total store sales rose 5.2% to $13.9 million, while on a same-store basis sales increased 7.6% to $13.9 million, as the chain benefited from better value and improved customer experience initiatives implemented over the past two years, it said.

Restaurant Brands expected to release its full first-half sales next Tuesday.

The shares last traded at $3.78 and have gained 3% since the start of the year.

(BusinessDesk)

Suze Metherell
Wed, 23 Sep 2015

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Restaurant Brands first-half sales rise 13% on demand for KFC, more Carl's Jr stores

Restaurant Brands sales jump 15%

Restaurant Brands sales jump 15%