Restaurant Brands lifts fourth quarter revenue bolstered by KFC

Restaurant Brands lifted fourth quarter sales 37% to $121.6 million, bolstered by gains from its Australian KFC stores.

In the 12 weeks to February 27, the company's sales rose to $121.6 million, up $32.7 million from the equivalent period a year earlier. Some $27 million of that came from the 42 New South Wales KFC stores Restaurant Brands bought in April last year.

The company's New Zealand sales rose 6.4% to $94.5 million in the fourth quarter, while same-store sales, which are those for outlets open at least 12 months, increased 6% to $91.2 million.

The quarterly gain lifted annual sales 28% to $497.2 million.

Restaurant Brands plans to split its corporate structure into three geographical divisions of New Zealand, Australia and Hawaii, as it awaits settlement of its acquisition of Pacific Island Restaurants, the biggest fast-food operator in the US state with 82 Taco Bell and Pizza Hut stores.

In New Zealand, KFC sales rose 9% in the fourth quarter to $70.7 million, with a 4.9% gain on an annual basis for sales of $296.5 million. Same-store sales rose 7.1% in the quarter, with 92 stores open, one more than a year ago.

Pizza Hut sales dropped 9.2% to $9 million in the fourth quarter, for an annual fall of 9.8% to $40.4 million.

The company has four fewer Pizza Hut stores compared to the same time last year, and sold its Invercargill store to an independent franchisee in the quarter, reducing its total outlets to 35. Franchisees now own 58 of the 93 stores in the Pizza Hut network.

Starbucks Coffee sales dropped 1.6% to $6.6 million, for an annual decline of 0.4% to $26.7 million, although they gained on a same-store basis. It now has 24 stores trading, one fewer than a year prior after it closed Aotea Square.

Hamburger chain Carl's Jr, the company's newest brand, recorded an 11% quarterly gain in sales to $8.2 million for an annual gain of 9% to $36.3 million.

Restaurant Brands closed the underperforming Otahuhu store in the quarter, leaving it with 19 restaurants, but a net gain of one store for the year as it opened two more throughout 2016.

The shares last traded at $5.42, up 0.6% in early trading, and have gained 19% in the past year.

(BusinessDesk)