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

 

Must Sell 20 Petrol Stations: Z Cleared To Buy Caltex Assets

Z Energy is allowed to buy the Caltex and Challenge! petrol station chains but must sell 19 of its retail sites and one truck-stop, the Commerce Commission has ruled in a split decision that acknowledges possible retail price coordination between fuel retailers occurs in some regions. More>>

ALSO:

Huntly: Genesis Extends Life Of Coal-Fuelled Power Station To 2022

Genesis Energy will keep its two coal and gas-fired units at Huntly Power Station operating until 2022, having previously said they'd be closed by 2018, after wringing a high price from other electricity generators who wanted to keep them as back-up. More>>

ALSO:

Dammed If You Do: Ruataniwha Irrigation Scheme Hits Farmer Uptake Targets

Enough Hawke's Bay farmers have signed up for water from the proposed Ruataniwha Water Storage Scheme for it to go ahead as long as a cornerstone institutional capital investor can be found to back it, its regional council promoter announced. More>>

ALSO:

Reserve Bank: OCR Stays At 2.25%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2.25 percent, in a decision traders had said could go either way, while predicting inflation will pick up as the slump in oil prices washes out of the data and capacity pressures start to build in the economy. More>>

ALSO:

Export Values Down: NZ Posts Biggest Annual Trade Deficit In 7 Years

New Zealand has recorded its biggest annual trade deficit since April 2009, reflecting weaker prices of agricultural commodities such as dairy products, beef and lamb, and increased imports of vehicles and machinery. More>>

ALSO:

Currency Events: NZ's New $5 Note Wins International Banknote Award

New Zealand’s new Brighter Money $5 note has been named Banknote of the Year in a prestigious international competition. The $5 note was awarded the IBNS Banknote of the Year title at the International Bank Note Society’s annual meeting. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news