Restaurant Brands has recorded a 13.8% boost in after-tax profits following a strong showing from anchor outlet KFC for its half-year trading to mid-September.
Overall sales from KFC, Pizza Hut, Starbucks Coffee and Carl's Jr rose 11.7% on a year ago, from $137.1million to $153.1million, earnings before interest and tax (ebit) was up 17.9%, from $16million to $18.9million, while after-tax profit was up 13.8%, from $11.5million to $13million.
Restaurants Brands (RBD) said in a statement all four brands now had sales and profit momentum which was expected to continue for the balance of this financial year.
''The improved first-half profit performance is expected to be sustained. This will result in a net profit after tax for the 2016 financial year in excess of $24 million,'' the company said.
For Restaurant Brands, KFC sales were $153.2 million, up 11.7% or $16.1 million on a year ago with same store sales up 8.8%.
''A continuing positive retail environment, higher levels of advertising activity and some successful new product promotions all contributed to a strong first-half profit performance,'' the company said.
Shares in Restaurant Brands have gained 20% in the last 12 months.
Forsyth Barr broker Suzanne Kinnaird said RBD's $13million profit was ahead of expectations, of around $12.7million.
''The key highlight in the result was its anchor chain, KFC, with strong sales growth and margin expansion,'' Ms Kinnaird said.
Craigs Investment Partners broker Peter McIntyre said the dividend had increased from 7.5c a year ago to 8.5c, on the back of a standout performance by KFC and improving performance of Carl's Jr.
RBD had reiterated its previous guidance of full-year profit to exceed $24million, compared to the previous year's $22.5million.
Ms Kinnaird said: ''We view the guidance as conservative, particularly given the strong momentum behind its anchor chain, KFC.''
Pizza Hut's performance reflected a slowdown following a stellar turnaround three years ago, and sales to independent franchisees also meant the chain had five fewer stores than a year ago, she said.
Starbucks was a small part of the overall group, but RBD has done a good job turning around an underperforming chain while the earnings of Carl's Jr ''continue to underwhelm'', with the chain taking longer than expected to see positive momentum, Ms Kinnaird said.
