Restaurant Brands 1st-half sales rise 13% on demand for KFC   23 Sep 2015

Restaurant Brands first-half sales rise 13% on demand for KFC, more Carl's Jr stores

By Suze Metherell

Sept. 23 (BusinessDesk) - Restaurant Brands, the country's largest listed fast food operator, boosted first-half sales 13 percent on an increase in sales of fried chicken at KFC and more Carl's Jr stores.

Total store sales rose to $210 million in the 28 weeks ended Sept. 14, from $185.7 million a year earlier, the Auckland-based company said in a statement. On a same-store basis sales increased 6.7 percent to $192 million. It had a total of 180 stores across its KFC, Carl's Jr, Starbucks Coffee and Pizza Hut brands, six more than a year earlier.

Its KFC brand, which makes up more than two thirds of revenue, increased total store sales 12 percent to $153.2 million while same-store sales rose 8.8 percent. Restaurant Brands has been refurbishing stores and spending more on marketing, including KFC's successful promotion of the Double Down option and the Family Favourites Bucket.

Carl's Jr, the company's newest brand, increased total store sales 108 percent to $18.4 million, but on a same-store basis sales slipped 6.8 percent to $8.2 million. The company doubled the number of stores to 18, as it opened new shop fronts and brought back stores under its management, buying them from franchisees.

Pizza Hut sales fell 7.3 percent to $24.5 million on a total store basis, while same-stores sales slipped 0.4 percent to $23.9 million. The company is exiting stores in line with its plan to sell underperforming outlets to franchisees, and had reduced it to 44 at balance date from 49 a year earlier.

Starbucks total store sales rose 5.2 percent to $13.9 million, while on a same-store basis sales increased 7.6 percent to $13.9 million, as the chain benefited from better value and improved customer experience initiatives implemented over the past two years, it said.

Restaurant Brands expected to release its full first-half sales next Tuesday.

The shares last traded at $3.78 and have gained 3 percent since the start of the year.

(BusinessDesk)

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