KFC still driving Restaurant Brands

  • 17/12/2015

Restaurant Brands lifted third quarter sales 9.4 percent as New Zealand's biggest fast food operator benefited from increased revenue at KFC and expansion at its new Carl's Jr burger chain.

Sales rose to $88.7 million in the 12 weeks ended December 7, from $81.1m in the year earlier period, it said. Excluding changes in store numbers, sales advanced 3.7 percent to $81.5m, it said.

The company's 91 KFC outlets, which make up almost three quarters of revenue, added $3.8m to the total increase in sales, while its newest Carl's Jr brand contributed a further $4m as it benefited from a doubling of store numbers to 18.

KFC sales rose 6.2 percent to $64.5m, compared with growth of 9.8 percent the previous year.

Carl's Jr more than doubled sales to $7.5m from $3.6m after it added new stores and brought back some under its management.

Pizza Hut sales fell 3.9 percent to $10.4m as it reduced store numbers by six to 41, reflecting its strategy to sell lower volume stores to independent franchisees and exit the 'red roof' dine-in restaurant format.

The Starbucks coffee chain's 26 stores increased sales 5.7 percent to $6.2m, as it benefited from better value and improved customer experience initiatives put in place over the past two years.

Restaurant Brands didn't provide any comment on its earnings outlook. In October, the company said it expected full-year profit before one-time items would be more than $24m.

The shares are trading up 0.9 percent at $4.35.