Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Restaurant Brands third quarter sales rise 5.4%

Restaurant Brands third quarter sales rise 5.4%, buoyed by new Carl’s Jr burger chain

By Tina Morrison

Dec. 11 (BusinessDesk) – Restaurant Brands, New Zealand’s largest fast food operator by sales, said third -quarter sales growth accelerated to 5.4 percent this year, compared with just 0.5 percent growth in the same period a year earlier.

Sales rose to $76.2 million in the 12 weeks ended Dec. 2, from $72.2 million in the same period a year earlier, even as it had two fewer stores, the Auckland-based company said in a statement. On a same store basis, sales edged up 0.2 percent.

Chief executive Russel Creedy is counting on new brands such as burger chain Carl’s Jr to drive future earnings growth. To improve profitability in its legacy businesses, the company is refurbishing and adding to its KFC outlets, which account for about three quarters of sales, exiting low performing Pizza Hut stores and closing its worst performing Starbucks Coffee outlets.

Restaurant Brands said the Carl’s Jr chain, which it opened in November last year, was the largest contributor to the third quarter sales increase. The burger chain added $4 million to sales in the latest quarter, compared with just $90,000 in the year earlier period as the number of stores swelled to eight from just one.

Sales at KFC slipped 0.1 percent in the quarter to $55.3 million even as it added two new stores from the year earlier as the brand focuses on ‘value’ promotions.

Pizza Hut sales slipped 0.4 percent to $11 million, lagging last year’s 3.5 percent increase. The company had eight fewer stores in the latest period as part of its strategy to sell regional and lower volume stores to independent franchisees.

The Starbucks Coffee unit increased sales 2.7 percent to $5.8 million even with three fewer stores as it continues to close non-performing outlets.

Restaurant Brands didn’t provide an updated profit forecast. In October, the company said improved trading in the second half of the financial year would see full-year earnings of between $18 million and $19 million, up from $17.7 million a year earlier.

Shares in Restaurant Brands last traded at $2.80, having gained 6.1 percent this year.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: Equity Crowd Funding Carries Risks, High Failure Rate

Equity crowd funding, which became legal in New Zealand this month, comes with a high risk of failure based on figures showing existing forays into social capital have a success rate of less than 50 percent, one new entrant says. More>>

ALSO:

Scoop Business: NZ Migration Rises To 11-Year High In March

The country gained a seasonally adjusted 3,800 net new migrants in March, the most since February 2003, said Statistics New Zealand. A net 400 people left for Australia in March, down from 600 in February, according to seasonally adjusted figures. More>>

ALSO:

Hugh Pavletich: New Zealand’s Bubble Economy Is Vulnerable

The recent Forbes e-edition article by Jesse Colombo assesses the New Zealand economy “ 12 Reasons Why New Zealand's Economic Bubble Will End In Disaster ”, seems to have created quite a stir, creating extensive media coverage in New Zealand. More>>

ALSO:

Thursday Market Close: Genesis Debut Sparks Energy Rally

New Zealand stock rose after shares in the partially privatised Genesis Energy soared as much as 18 percent in its debut listing on the NZX, buoying other listed energy companies in the process. Meridian Energy, MightyRiverPower, Contact Energy and TrustPower paced gains. More>>

ALSO:

Power Outages, Roads Close: Easter Storm Moving Down Country

The NZ Transport Agency says storm conditions at the start of the Easter break are making driving hazardous in Auckland and Northland and it advises people extreme care is needed on the regions’ state highways and roads... More>>

ALSO:

Houses (& Tobacco) Lead Inflation: CPI Up 0.3% In March Quarter

The consumers price index (CPI) rose 0.3 percent in the March 2014 quarter, Statistics New Zealand said today. Higher tobacco and housing prices were partly countered by seasonally cheaper international air fares, vegetables, and package holidays. More>>

ALSO:

Notoriously Reliable Predictions: Budget To Show Rise In Full-Time Income To 2018: English

This year’s Budget will forecast wage increases through to 2018 amounting to a $10,500 a year increase in average full time earnings over six years to $62,200 a year, says Finance Minister Bill English in a speech urging voters not to “put all of this at risk” by changing the government. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news