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

 

Exit of Pizza Hut Victoria Announced

30 November 2006

News release

Restaurant Brands Announces Exit of Pizza Hut Victoria

Market update – approaches received

Restaurant Brands today announced that it had reached agreement with its franchisor Yum to accelerate the company’s sale or exit from all of its 50 Pizza Hut Victoria stores. This is expected to be achieved by the end of the current financial year (February 2007).

The company said it had sale and purchase agreements for 35 stores, 14 of which will be transferred to new owners in the next few days. In addition the company has agreed with Yum to assist in the company’s exit of 10 stores early. Expressions of interest from prospective purchasers have been received for the remaining 5 stores, which are also expected to be sold by financial year end.

The total cost of the full exit from Victoria is expected to be NZ$9.0 million which includes the $2.6 million write-down of assets taken at the half year. The balance of $6.4 million will be taken up in the second half results and includes the write-off of $4.1 million of residual asset values (as advised to the market at half year) plus the sale and closure costs of stores, fees payable to Yum and provision for outstanding lease liabilities. The net cash cost is $1.3 million. As a result of the decision to exit this business, Pizza Hut Victoria was classified as a discontinued operation at the half year. The full exit will improve Restaurant Brands operating earnings by approximately $3.0 million in the 2007/08 year.

“We are pleased to have reached an agreement with Yum that allows us to exit this business more than a year before our franchise agreements end. This allows us to concentrate our efforts fully on the transformation of KFC, growth of Starbucks Coffee, and revitalization of Pizza Hut in New Zealand,” said Restaurant Brands Chief Executive Vicki Salmon.

The company also said that a number of parties have approached the Board of Directors and expressed interest in their potential participation in the future of the company.

Restaurant Brands is responding to these approaches and will keep the market updated of any developments as appropriate.

ENDS

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 



Westpac: More Job Opportunities, But Growth In Workers’ Earnings Remains Subdued

The Westpac McDermott Miller Employment Confidence Index rose 1.2 points in the December quarter, to a level of 106.9. This was the sixth straight rise in the index since the Covid-19 lockdown in 2020. Michael Gordon, Acting Chief Economist for Westpac, noted that the rise in the index has largely been driven by perceptions... More>>




Statistics: Card Spending Continues To Increase As COVID-19 Restrictions Ease

The busy Christmas period combined with easing COVID-19 restrictions helped to increase card spending in December 2021, Stats NZ said today... More>>


Westpac NZ: Warns About Sophisticated New Scam
Westpac NZ is warning New Zealanders about a sophisticated new scam that involves a fake Westpac investment prospectus.
The prospectus is formatted to resemble a Westpac document and includes professional-looking imagery... More>>


TradeMe: Job Market Ends 2021 On A High With Record Number Of Vacancies
The New Zealand job market finished 2021 on a high note, with the ball still firmly in the job hunters’ court, according to the analysis of 69,600 vacancies listed on Trade Me Jobs for the quarter ending 31 December (Q4)... More>>


Insurance Council of New Zealand: September South Island Windstorm Cost $36.5 M Raises 2021 Extreme Weather Claims Total To $321.6 M

Gale force winds and storms between 9 and 13 September 2021 resulted in insurers supporting communities to the tune of $36.5 m. This is a significant rise, of $16.7 m, on preliminary figures for the event and lifts the end of year total for all extreme weather events in 2021 to $321.6 m... More>>


Statistics: Building Consents Hit New Highs In November
There were a record 48,522 new homes consented in the year ended November 2021, Stats NZ said today. This was up 26 percent compared with the year ended November 2020... More>>