Restaurant Brands lifts first quarter sales, bolstered by Australian KFC stores
Forty two Australian KFC stores contribute $8.1 million
Restaurant Brands New Zealand [NZX: RBD] lifted first-quarter sales 8.5% as the acquisition of New South Wales' biggest KFC franchise bolstered revenue.
Total sales rose to $96.6 million in the 12 weeks ended May 23 from $89.1 million a year earlier, of which the 42 Australian KFC stores contributed $8.1 million, company says.
Stripping that out, revenue in New Zealand was down 0.6% due to the closure of nine Pizza Hut stores, one Starbucks Coffee outlet and weak sales in the Carl's Jr chain.
On a same-store basis, sales rose 0.4% with gains in Restaurant Brands' KFC, Pizza Hut and Starbucks franchises offsetting a 14% drop in revenue at Carl's Jr, which had enjoyed rapid growth since it joined the group in 2014.
Restaurant Brands carried out a major expansion in March, making its first foray across the Tasman by buying QSR Pty, the biggest KFC franchisee in NSW, with 42 stores, for $A82.4 million in cash and scrip.
The company’s shares have soared on the prospects of Australian earnings growth from KFC, its most successful New Zealand brand.
Restaurant Brands shares last traded at $5.50 and have climbed 25% so far this year. The stock is rated a 'buy' based on four analyst recommendations compiled by Reuters, with a median price target of $5.63.
(BusinessDesk)
Paul McBeth
Thu, 02 Jun 2016
Thu, 02 Jun 2016
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Restaurant Brands lifts first quarter sales, bolstered by Australian KFC stores
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