Restaurant Brands takes bigger bite

Continuing strategy of new products pays off for Restaurant Brands. Photo by Peter McIntosh.
Continuing strategy of new products pays off for Restaurant Brands. Photo by Peter McIntosh.
New Zealanders are continuing to spend on fast food, with Restaurant Brands reporting a nearly 4% increase in sales in the 12 weeks ended May.

Quarter sales were $73.3 million, an increase of 4.9%, or $2.8 million, on the previous corresponding period.

The new Carl's Jr brand of burger restaurants, launched in November, was the largest contributor to the sales increase at $2.3 million with three stores trading most of the quarter.

KFC total sales increased 0.1% in the quarter. Starbucks Coffee sales fell 5.1% and Pizza Hut sales were up 6.7%.

Same store sales for the company were up 3.2% with KFC showing a small decrease of 0.9%, Starbucks Coffee up 1.7% and Pizza Hut well up with 28.6% growth.

Restaurant Brands chief executive Russel Creedy said the increased sales from Pizza Hut were the result of having 12 fewer stores as the company continued its strategy of selling regional and lower volume stores to independent franchisees.

Same store sales for the quarter increased by 28.6%. Over the last four quarters, the rate of same store sales growth had continued to increase, he said.

Company stores reduced in number from 69 a year ago to 57 at the end of the quarter with 26 Pizza Hut stores now operated by independent franchisees.

Total Pizza Hut system sales (including those of independent franchisees) from 83 stores were $16.2 million for the quarter, up 28.5% in total and up 29.2% on a same store basis, Mr Creedy said.

Starbucks quarterly sales were $5.6 million, down 5.1% on the pcp. The brand had five fewer stores than the pcp - two as a result of the Christchurch earthquakes and three stores closed at the end of their leases.

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