Restaurant Brands sales fall 2.7%, same-store sales down 3.7%
The operator of local Pizza Hut, KFC and Starbucks brands reports first-quarter sales fell, reflecting the success of KFC's Double Down promotion a year earlier.
BUSINESSDESK: Restaurant Brands, which operates the local Pizza Hut, KFC and Starbucks brands, reported first-quarter sales fell 2.7%, reflecting the success of KFC's Double Down promotion a year earlier.
Group sales fell $2 million to $70.6 million, in the 12 weeks ended May 21, while same-store sales dropped 3.7% to $68 million, the company said.
KFC sales fell 3.1% to $54 million, while same store-sales decreased 6.4%. In the same quarter last year, sales rose 2.8% on demand for the Double Down burger, a calorific treat with two burger patties, cheese, bacon and no bun.
"Sales were affected by the rolling over of the prior year's KFC Double Down burger promotion, which was an unprecedented sales success," the company said.
"KFC plans to offer the Double Down as a limited time offer later this year."
KFC's Christchurch CBD store will be demolished, while Starbucks lost two stores in the region's earthquakes last year.
That saw the coffee-house chain's quarterly sales fall 3.5% to $5.9 million on a year earlier, while same-store sales fell 0.9%.
"The Colombo St, Christchurch, store was permanently closed with lease termination relating to earthquake remediation works," it said.
"Two Starbucks Coffee stores in Cashel Mall and Cathedral Square remain closed as a result of the earthquake, leaving 32 stores actually trading."
Pizza Hut sales were flat at $10.6 million despite a reduction in nine outlets after the sale of stores to independent franchisees and closures.
The number of Pizza Hut stores now stands at 69. Same-store sales increased 10.4%, largely driven by the launch of the $4.90 Large Classics Pizza.
Restaurant Brands plans to open its first Carl’s Jr restaurant in the third quarter of this year and has several other sites under evaluation.
Its shares fell 1.4% to $2.12 on the NZX today.
Hannah Lynch
Wed, 30 May 2012
Wed, 30 May 2012
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Restaurant Brands sales fall 2.7%, same-store sales down 3.7%
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