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

 


Restaurant Brands 1Q sales gain, led by Carl's Jr chain

Restaurant Brands 1Q sales gain, led by Carl's Jr chain

By Suze Metherell

May 28 (BusinessDesk) - Restaurant Brands, which operates KFC, Pizza Hut and Starbucks Coffee, said first quarter sales grew 5.9 percent as burger sales from its latest addition to New Zealand's fast food scene, Carl's Jr, climbed 60 percent.

Total store sales rose to $77.7 million in the three months ended May 19 from $73.3 million in the same period a year earlier, the Auckland-based company said in a statement. Same store sales rose 4.3 percent to $74.3 million.

Restaurant Brands is tweaking its store mix in an effort to boost earnings. The company is selling its regional and lower volume Pizza Hut stores to independent franchisees, has closed unprofitable Starbucks Coffee outlets and added burger chain Carl’s Jr. to better compete with rivals McDonald’s Restaurants (NZ) and Burger King Corp. In the coming year it plans to pick up the pace of store upgrades at its main KFC fried chicken chain, as it targets a complete revamp of the network in the next two years.

Sales at the Carl's Jr outlets, which Restaurant Brands brought to New Zealand at the start of 2012, rose to $3.7 million from $2.3 million, while same store sales fell 36 percent to $1.5 million reflecting a strong opening from the previous year, the company said. The chain didn't open any new stores in the quarter, but has doubled the number of stores to eight in the intervening months.

Sales at its biggest earner, KFC, rose 5.3 percent to $55.9 million, while same store sales lifted 5 percent to $55.8 million on the launch of its new menu and the promotion of its Kiwi Onion Dip Burger. The chain added one new store in the quarter, taking the total number of outlets to 91 outlets across New Zealand.

Pizza Hut sales increased 0.3 percent to $11.3 million, while same store sales rose 9.3 percent to $11.3 million. Restaurant Brands has sold seven shopfronts in the intervening months, including selling its Newtown shop in Wellington during the quarter.

Starbucks sales rose 2.2 percent to $5.7 million, while same store sales were up 5.5 percent to $5.7 million compared to the same period a year earlier. No further cafes were closed in the quarter, but two have been closed in the year.

Restaurant Brands has 176 fast food outlets throughout New Zealand.

The shares rose 0.6 percent to $3.20 and have gained 5.6 percent in the past year. The stock is rated an average 'buy' according to three analyst recommendations compiled by Reuters with a median target price of $3.40.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Company Results: Air NZ Rides The Tourism Boom With Record Full-Year Earnings

Air New Zealand has ridden the tourism boom and staved off increased competition to deliver the best full-year earnings in its 76-year history. More>>

ALSO:

New PGP: Sheep Milk Industry Gets $12.6M Crown Funding

The Sheep - Horizon Three programme aims to develop "a market driven, end-to-end value chain generating annual revenues of between $200 million and $700 million by 2030," according to a joint statement. More>>

ALSO:

Half Full: Fonterra Raises Forecast Milk Price

Fonterra Co-operative Group Limited today increased its 2016/17 forecast Farmgate Milk Price by 50 cents to $4.75 per kgMS. When combined with the forecast earnings per share range for the 2017 financial year of 50 to 60 cents, the total payout available to farmers in the current season is forecast to be $5.25 to $5.35 before retentions. More>>

ALSO:

Keep Digging: Seabed Ironsands Miner TransTasman Tries Again

The first company to attempt to gain a resource consent to mine ironsands from the ocean floor in New Zealand's Exclusive Economic Zone has lodged a new application containing fresh scientific and other evidence it hopes will persuade regulators after their initial application was turned down in 2014. More>>

Wool Pulled: Duvets Sold As ‘Premium Alpaca’ Mostly Sheep’s Wool

Rotorua business Budge Collection Limited (Budge) and sole director, Sun Dong Kim, were convicted and fined a total of $71,250 in Auckland District Court after each pleading guilty to four charges of misrepresenting how much alpaca fibre was in their duvets. More>>

Reserve Bank: Labour Calls For Monetary Policy To Expand Goals

Labour's comments follow a speech today by RBNZ governor Graeme Wheeler in which Wheeler sought to answer critics who variously say he should stop lowering interest rates, lower them faster, or that inflation-targeting should no longer be the primary goal of the central bank's activities. More>>

ALSO:

BSA Extension And Sunday Morning Ads: Digital Convergence Bill Captures Online Content

Broadcasting Minister Amy Adams has today announced the Government’s plans to update the Broadcasting Act to better reflect today’s converged market... The Government considered four areas as part of its review into content regulation: classification requirements, advertising restrictions, election programming and contestable funding. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news