Analysts expect fast-food retail group Restaurant Brands to report a modest drop in its full-year net profit after integrating 53 competitor stores into its Pizza Hut franchise.
According to six analysts polled by Multex Global Estimates, the company will post a net profit of $12 million for the year to November 30, 2000, down nearly 8 per cent from $13 million in the previous year.
The company reports its results tomorrow.
Analysts said the negative impact on the bottom line occurred in the second half of the company's financial year following its $28.3 million acquisition of 53 Eagle Boys brand pizza stores in May 2000.
At its half-year result, reported in July 2000, the company said it expected to incur a one-off after-tax charge of $2.2 million for the second half.
Analysts said the charge covered rebranding and integration of the Eagle Boys stores and the closure of 10 underperforming Pizza Hut outlets.
Restaurant Brands also operates KFC and Starbucks outlets.
- NZPA
Pizza chain acquisition lowers profit
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