Restaurant Brands’ sales rise 3.5%

WELLINGTON: Restaurant Brands New Zealand lifted secondquarter sales 3.5% as growing demand for the fastfood operator’s local KFC chain more than offset the loss of its lacklustre Starbucks Coffee stores.

Total sales rose to

$259.7 million in the 16 weeks to September 9 from $251 million a year earlier. Its New Zealand arm still accounts for more than half its revenue, largely through the success of 97 KFC stores.

The local KFC arm lifted sales 8.8%, or $9.2 million, to

$113.5 million, more than making up for the retailer’s exit from Starbucks, which contributed $7.3 million to revenue in the same period a year earlier.

Its local Pizza Hut franchise posted a 5.9% drop in sales to $10.6 million and its Carl’s Jr chain lifted revenue 8.3% to

$10.7 million, helped in part by the introduction of UberEats.

Secondquarter sales from its 61 KFC stores in Australia rose 2.4% to $62 million, including a weaker Australian dollar crimping returns in New Zealand dollar terms.

Its Hawaiian Taco Bell and Pizza Hut stores lifted sales 9.2% to $62.9 million, buoyed by a stronger greenback.

The fastfood operator is targeting profit growth of 6% in the current financial year, a period during which it will open the first Taco Bell stores across Australia and New Zealand.

It reported underlying annual profit of $42.2 million in the year to February 25.

Restaurant Brands will report its firsthalf result on October 16.

Firsthalf sales were up 2.7% at $442.6 million, of which 44% came from its New Zealand KFC stores.

The exit from Starbucks last year meant the company had 285 stores at the end of the period, down from 305 a year earlier.

The shares were up 2.18% at $11.26 at the close of trade yesterday.

Mexico’s Finaccess Capital took control of the company in a partial takeover last year, paying $9.45 a share for 75% of the stock. — BusinessDesk