Restaurant Brands’ taste of success
Restaurant Brands New Zealand lifted first-quarter sales 12 per cent after the fast-food operator acquired a further 13 KFC stores in Australia.
The Auckland- based company said sales increased to $180 million in the 12 weeks ended May 21, from $161.2m in the equivalent period a year earlier.
New Zealand operations lifted sales 2.8 per cent to $97.4m, while Australian sales surged 44 per cent to $ 42.8m and Hawaiian sales rose 8.4 per cent to $39.8m.
On a same-store basis, total sales rose a more modest 2.9 per cent. The company’s shares slipped 1.9 per cent to $7.72 in early trading today, having gained 7.8 per cent so far this year.
New Zealand’s largest f ast- f ood operator is expanding into new overseas markets to drive future earnings growth. The company operates the KFC, Pizza Hut, Starbucks Coffee and Carl’s Jr brands in New Zealand and has expanded its business to KFC in Australia and Taco Bell and Pizza Hut in Hawaii. It had a total of 309 stores at the end of the quarter, boosted by the acquisition of a further 13 KFC stores in Australia.
In New Zealand, its largest market, total store numbers across its brands reduced by two to 167 from the year-earlier period.
It added two KFC stores, taking the total to 94 with sales up 5.8 per cent to $75m.
In its local Pizza Hut business, sales slipped 5.4 per cent to $9.2m as store numbers reduced by one to 33. It sold three stores to independent franchisee, taking the total number of independent stores to 65. — quote