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

 

Future Brighter Money: RBNZ Releases New Bank Note Designs

New Zealand’s banknotes are getting brighter and better, with the Reserve Bank today unveiling more vibrant and secure banknote designs which will progressively enter circulation later next year. More>>

ALSO:

Commerce: Supermarket Inquiry Finds No Breaches By Countdown

The Commerce Commission inquiry into anti-competitive behaviour by Countdown supermarkets, alleged by former Labour Party MP Shane Jones, has found nothing to warrant prosecution, although it warns supermarkets to take care in the way they communicate... More>>

ALSO:

Crown Accounts: English Flags ‘Challenge’ To Budget Surplus

Finance Minister Bill English is warning next month’s half yearly fiscal and economic update from the Treasury may not forecast a budget surplus, saying that returning the government’s accounts to surplus in 2015 will be “a challenge”, given the decline in commodity prices and weak global inflation. More>>

ALSO:

March 2015: Netflix To Launch In Australia And New Zealand

World’s Leading Internet Television Network to Offer Original Series, Movies, Documentaries, Stand-Up Comedy Specials and TV Shows for Low Monthly Price More>>

ALSO:

Price Of Cheese (Is Up): Dairy Product Prices Fall To Five-Year Low

Dairy product prices fell in the latest GlobalDairyTrade auction to the lowest level in more than five years, led by declines in rennet casein and skim milk powder. More>>

ALSO:

Gordon Campbell: On The Australians Scoring Trade Points Against Us With The Chinese

It hasn’t been a great year for Trade Minister Tim Groser... To top it off, Australia has just signed a FTA with China that has far better provisions on dairy exports than what New Zealand currently enjoys in our own FTA with China. More>>

ALSO:

Iwi & Local Consultation: Oil And Gas Block Offer 2015 Begins

Energy and Resources Minister Simon Bridges today announced the start of the Block Offer 2015 process for awarding oil and gas exploration permits. More>>

Industrial Action: Stats NZ Throwing Public Money Away Duplicating Data

The Public Service Association (PSA) says Statistics NZ are throwing money away by collecting the same data twice for official statistics such as the Consumer Price Index... As part of the ongoing industrial action, field interviewers who are PSA members are continuing to collect data, but are not sending it through to Statistics NZ. More>>

ALSO:

Other Stats:

Space: Rosetta's 'Philae' Makes Historic First Landing On A Comet

After more than a decade traveling through space, a robotic lander built by the European Space Agency has made the first-ever soft landing of a spacecraft on a comet. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

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