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

 

Quake Insurance: Reforms To EQC Act Announced

· Increasing the monetary cap from $100,000 (plus GST) to $150,000 (plus GST) for EQC building cover.
· Clarifying EQC land cover is for natural disaster damage that directly affects the insured residence or access to it... More>>

ALSO:

Reserve Bank: Official Cash Rate Unchanged At 1.75 Percent

Global economic growth has increased and become more broad-based. However, major challenges remain with on-going surplus capacity and extensive political uncertainty... More>>

Kaikōura Earthquake: Private Insurers Receive $1.8b Claims

Insurance Council Chief Executive Tim Grafton said most is for commercial loss at $1.36 billion, with residential claims amounting to over $460 million. “...We have a high level of confidence that most people will have received settlement offers by the end of this year." More>>

ALSO:

Forms And Data: New Proposals To Simplify Personal Income Tax

The Government is proposing to make tax simpler for individuals, with people whose only income is from a salary, wages or investments no longer being required to file tax returns to receive tax refunds or to calculate any additional tax. More>>

OECD: NZ Economic Expansion Faces Long Term Challenges

The OECD Economic Survey of New Zealand discusses the gap between the strong short-term outlook and long-term challenges posed by low productivity growth and a changing labour market. More>>

ALSO:

GDP: