Restaurant Brands' acquisition of 42 KFC outlets in Australasia has helped boost its first-quarter sales more than 8% to $96.6million, offsetting declining income from Pizza Hut sales.
In a first-quarter market update released by chief executive Russel Creedy yesterday, all-store sales were up 8.5% at $96.6million from $89million a year ago, with total sales attributed to KFC up 1.4%, at $65.3million.
Pizza Hut sales were down 11.8% at $9.23million, Starbucks Coffee sales were down 2.2% at $5.97million and Carl's Jr sales were down 1.1% at $7.94million.
Shares in Restaurant Brands weakened slightly to $5.52 after the announcement, but were up 32% on a year ago.
Mr Creedy said of the 8.5% overall increase in sales, last year's acquisition of 42 Australian KFC outlets contributed $8.1million in the quarter.
The Australian sales were "in line'' with what was achieved for the same period a year earlier.
The reduction by nine of Pizza Hut stores, from 46 to 37, resulted in total sales falling by $1.2million to $9.23million, he said.
Restaurant Brands' strategy was to sell lower-volume and regional Pizza Hut outlets to independent franchisees, Mr Creedy said.
Total company store numbers were up on last year, rising by 33 to 215, the Australian acquisitions offsetting the Pizza Hut store sales, he said.
Restaurant Brands' March deal to buy the Australian outlets, in which it paid
$A82.4million ($NZ90.1 million) for the 42 New South Wales KFC outlets in a script and cash deal, was a surprise to the market.
At the time, seller QSR Pty Ltd had the largest KFC franchise, by store numbers, in New South Wales, with annual revenue of more than $A100million and earnings before interest, tax, depreciation and amortisation of more than $A15million.
For its year to the end of February, Restaurant Brands posted total group store sales of $387.6million, up 7.8%, and after-tax profit of $24.1million, up 1%.
Restaurant Brands
The company's 215 outlets
KFC NZ: 91 (92 last year).
KFC Aust: 42 (new acquisition).
Pizza Hut: 37 (9 just sold).
Starbucks Coffee: 25 (26 last year).
Carl's Jr: 20 (18 last year).
