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Restaurant Brands sales jump 15%

KFC and Carl's Jr chains push first quarter sales.

Tina Morrison
Thu, 04 Jun 2015

Restaurant Brands [NZX: RBD], New Zealand's largest fast-food store operator, increased first-quarter sales 15%.

Revenue jumped at fried chicken outlet KFC, its largest unit, and the company added more stores to burger chain Carl's Jr.

Sales rose to $89.1 million in the 12 weeks ended May 25 from $77.7 million a year earlier, the Auckland-based company says. Same-store sales, which excludes changes in store numbers, increased 7.6%.

The company's KFC unit, which accounts for almost three quarters of sales, boosted revenue 13% to $64.4 million in the quarter, ahead of the 5.2% pace a year earlier. The chain has refurbished stores, stepped up marketing and extended opening hours. Same-store sales rose 9.8%, excluding the addition of a new store at Albany, taking the chain's total to 92.

"Successful promotions in the quarter were the 'Super Zinger Burger', 'Zinger Stacker Burger', 'Crispy Burrito' as well as a highly successful 'Super Bucket' with a free rugby ball as part of the KFC New Zealand Super Rugby teams' sponsorship," the company says.

Shares in Restaurant Brands rose 1.4% to a two-week high of $4.44, and have gained 19% so far this year.

Carl's Jr, the company's newest brand, more than doubled sales to $8 million from $3.7 million after it added 10 stores to the chain, taking the total to 18. Same-store sales slipped 5.2%, compared with a 36% drop the year earlier. Some stores showed positive growth while others rolled-over high opening period sales.

Pizza Hut sales fell 7.6% to $10.5 million as the company exited four stores in line with its plan to sell underperforming outlets to franchisees. It now has to 46 stores. Same-store sales slipped 0.5% as the year-earlier period was boosted by a 'Hot Dog Stuffed Crust' promotion. Some 43 Pizza Hut stores are now operated by independent franchisees.

The company's Starbucks Coffee chain increased sales 6.6% to $6.1 million, even as it had one fewer stores than the year earlier, taking its total to 26. Same-store sales jumped 8.9%, ahead of the 5.5% increase in the year earlier. The chain benefited from better value and improved customer experience initiatives implemented over the past two years, it says.

(BusinessDesk)

Tina Morrison
Thu, 04 Jun 2015
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Restaurant Brands sales jump 15%
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