Restaurant Brands sales boost riding on overseas acquisitions
OFFSHORE acquisitions largely underpinned a 45% rise in Restaurant Brand’s overall sales for its thirdquarter trading, by $53.9 million to $173.3 million.
Of the $53.9 million gain on the previous year, the majority of $39.2 million came from 37 Taco Bell and 45 Pizza Hut operations in Hawaii, Guam and Saipan, $10.8 million from newly acquired Australian KFC outlets plus a $3.9 million contribution from New Zealand operations.
Restaurants Brands store numbers were boosted by 82 acquisitions in Hawaii and 17 KFC outlets in Australia, to a total 310 fastfood outlets.
The company operates KFC stores in New Zealand and Australia, Pizza Hut, Starbucks and Carl’s Jr. in New Zealand and Pizza Hut and Taco Bell in Hawaii.
Restaurant Brand shares, which had gained 35% in value on a year ago, were up 1% to $7 following the announcement yesterday.
Forsyth Barr broker Suzanne Kinnaird said the acquisitions’ contributions were reflected in the $173.3 million overall sales. ‘‘Across the group, sales growth is tracking broadly in line with our fullyear expectations, albeit the mix is slightly favourable to earnings expectations, given the continued strength in KFC relative to its other lowermargin brands,’’ Mrs Kinnaird said.
She noted the smaller New Zealand brands, Pizza Hut, Starbucks and Carl’s Jr. all reported a decline in thirdquarter sales. Carl’s Jr. was ‘‘still the key disappointment’’.
However, those three brands put together comprised only about 13% of sales and Restaurant Brands growth focus was centred on the KFC brands.
Australian KFC sales were up 34% to $A34 million ($NZ37 million) for the quarter and New Zealand KFC was up 7.6% to $NZ73.5 million.
Mrs Kinnaird expected to soon be making ‘‘minor upgrades’’ to Restaurant Brands fullyear 2018 performance.
Sales at the 34 companyowned Pizza Hut New Zealand outlets fell 2.5% to $9.3 million while samestore sales rose 5.5%.
There are 61 Pizza Hut outlets operated by independent franchisees and network sales climbed 8.2% to $23 million, BusinessDesk reported.
Starbucks Coffee sales fell 5.9% to $6 million, although on a samestore basis they gained 6.4% as total stores in the chain declined by one to 23.
Total sales at the Carl’s Jr. burger chain fell 7.8% to $8.1 million and dropped 5.2% on a samestore basis. Total outlets fell by one to 19.