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

 


Restaurant Brands 4Q sales growth accelerates

Restaurant Brands 4Q sales growth accelerates as it benefits from new Carl’s Jr. burger chain

By Tina Morrison

March 5 (BusinessDesk) – Restaurant Brands New Zealand, the nation’s largest fast food operator, said fourth quarter sales rose at a faster pace as it benefited from its new Carl’s Jr. burger chain.

Sales rose 6.4 percent to $77.6 million in the 12 weeks ended Feb. 24, up from a 4.5 percent pace in the year earlier quarter, the Auckland-based company said in a statement. Annual sales rose 5.6 percent to $329 million, compared with a 1.2 percent pace the year earlier. That’s ahead of the $326 million mean forecast of analysts polled by Reuters.

Restaurant Brands is tweaking its store mix in an effort to boost future earnings. The company is selling its regional and lower volume Pizza Hut stores to independent franchisees, closing unprofitable Starbucks Coffee outlets and has added burger chain Carl’s Jr. to better compete with rivals McDonald’s Restaurants (NZ) and Burger King Corp.

Shares in Restaurant Brands advanced 1.8 percent to $2.85 and have slipped 0.4 percent so far this year. The stock has an average ‘hold’ rating according to analysts polled by Reuters.

Sales at fried chicken chain KFC continued to dominate sales, accounting for 73 percent of revenue in the fourth quarter. KFC sales rose 5 percent to $56.9 million, up from 1.8 percent sales growth in the year earlier period, as it added one store taking the total to 90 and benefited from a new menu, Christmas promotional activity and the release of the Real Kahuna Burger.

The Pizza Hut chain contributed 1.2 percent less revenue of $10.8 million in the fourth quarter, lagging a 6.9 percent gain in the year earlier period, as it operated with six fewer stores bringing the total to 51. Excluding the store changes, same-store sales rose 8.9 percent as it benefited from value offers and the promotion of its Moroccan Pizza range.

Sales at the company’s Starbucks chain increased 2.7 percent to $6.2 million despite having two fewer stores taking the total to 27. Excluding the store changes, sales rose 7.6 percent after the company improved its value and improved the customer experience of its stores.

The company’s newest chain, Carl’s Jr., which opened in November 2012, benefited from a rollout of new stores as sales rose 108 percent to $3.7 million. The company had eight stores during the latest quarter, compared with just two in the year earlier period. Excluding store changes, same-store sales slipped 59 percent as the chain rolled over strong opening sales the year earlier.

Restaurant Brands didn’t provide an update on its earnings outlook. The company, which reports full year earnings on April 10, said in October that 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. Analysts polled by Reuters expect full-year net income of $18.8 million.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Sky City : Auckland Convention Centre Cost Jumps By A Fifth

SkyCity Entertainment Group, the casino and hotel operator, is in talks with the government on how to fund the increased cost of as much as $130 million to build an international convention centre in downtown Auckland, with further gambling concessions ruled out. The Auckland-based company has increased its estimate to build the centre to between $470 million and $530 million as the construction boom across the country drives up building costs and design changes add to the bill.
More>>

ALSO:

RMTU: Mediation Between Lyttelton Port And Union Fails

The Rail and Maritime Union (RMTU) has opted to continue its overtime ban indefinitely after mediation with the Lyttelton Port of Christchurch (LPC) failed to progress collective bargaining. More>>

Earlier:

Science Policy: Callaghan, NSC Funding Knocked In Submissions

Callaghan Innovation, which was last year allocated a budget of $566 million over four years to dish out research and development grants, and the National Science Challenges attracted criticism in submissions on the government’s draft national statement of science investment, with science funding largely seen as too fragmented. More>>

ALSO:

Scoop Business: Spark, Voda And Telstra To Lay New Trans-Tasman Cable

Spark New Zealand and Vodafone, New Zealand’s two dominant telecommunications providers, in partnership with Australian provider Telstra, will spend US$70 million building a trans-Tasman submarine cable to bolster broadband traffic between the neighbouring countries and the rest of the world. More>>

ALSO:

More:

Statistics: Current Account Deficit Widens

New Zealand's annual current account deficit was $6.1 billion (2.6 percent of GDP) for the year ended September 2014. This compares with a deficit of $5.8 billion (2.5 percent of GDP) for the year ended June 2014. More>>

ALSO:

Still In The Red: NZ Govt Shunts Out Surplus To 2016

The New Zealand government has pushed out its targeted return to surplus for a year as falling dairy prices and a low inflation environment has kept a lid on its rising tax take, but is still dangling a possible tax cut in 2017, the next election year and promising to try and achieve the surplus pledge on which it campaigned for election in September. More>>

ALSO:

Job Insecurity: Time For Jobs That Count In The Meat Industry

“Meat Workers face it all”, says Graham Cooke, Meat Workers Union National Secretary. “Seasonal work, dangerous jobs, casual and zero hours contracts, and increasing pressure on workers to join non-union individual agreements. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news