Fastfood group's staple diet reaps results

By IRENE CHAPPLE

Coffee and fast food are the winning recipe for Restaurant Brands as the company announced another solid increase in quarterly sales.

Restaurant Brands - which owns KFC, Pizza Hut and Starbucks in New Zealand - said yesterday that all three brands had higher second-quarter sales.

The total $94 million sales were 17.7 per cent more than those for the same period last year.

Pizza Hut sales rose 12.4 per cent on last year to $24.1 million.

Comparative same-store sales have risen 6.6 per cent, as Pizza Hut opened three outlets in that quarter.

Restaurant Brands chief executive Jim Collier said Pizza Hut had recorded nine straight quarters of sales growth since it expanded in the home delivery and takeaway market in 2000 by taking over the Eagle Boys chain.

Restaurant Brands expanded into Australia in March, buying 51 of Victoria's 60 Pizza Hut outlets for $14.4 million.

Those franchises - two of which were in receivership when Restaurant Brands took over - have continued to bleed, but are expected to contribute to earnings within two years.

Victoria Pizza Hut sales were $8.9 million, an estimated 14 per cent decline during the quarter.

Starbucks, whose sales rose 37.8 per cent to $6.9 million, had a same-store drop of 9.4 per cent, with eight new stores effectively cannibalising the 26 already established.

Although its sales increases have been impressive - with Collier expecting a similar profit increase - Starbucks has slowed its expansion plan.

The chain has 34 stores, and Restaurant Brands originally said there would be 50 by 2003.

"We will be a little slower than that," he said, "but we're reasonably on track."

KFC has remained a solid earner, posting an increase of 1.3 per cent in sales to $54.1 million.

Collier said KFC stores were undergoing a revamp to have a "fresher, brighter and cleaner image".