KEY POINTS:
Restaurant Brands has reported a third quarter increase in sales of 1.9 per cent to $69.1 million, with KFC performing well as usual while Pizza Hut continues to drag.
Same store sales increased 1.8 per cent for the 12 weeks ended December 3, compared to the corresponding period
a year ago.
Pizza Hut continued to experience tight trading conditions in a competitive market which had meant a continuing short term sales decline, the company said today.
KFC's strong momentum was continuing, while Starbucks Coffee had another good result.
For the year to date, total sales were up 4.1 per cent to $233.2m, or 3.9 per cent on a same store basis.
KFC sales reached a new high for the quarter, up 7.9 per cent or $3.4m, to $45.6m. On a same store basis the increase was 5.8 per cent.
Year to date sales of $151.8m were $13.7m or 9.9 per cent up on a year ago, and 8.7 per cent up on a same store basis, Restaurant Brands said.
Four stores were closed during the quarter for major transformations, with the store network transformation programme having a positive impact on all stores.
Large numbers of non-transformed stores were also producing good same store sales growth, the company said.
So far there were 26 new or upgraded stores, with KFC store numbers unchanged from a year ago at 87.
At Pizza Hut New Zealand, total sales during the quarter were $15.9m, down 13.4 per cent, with same store sales down 8.8 per cent.
Year to date sales of $56.5m were down 9.7 per cent, and down 6.6 per cent on a same store basis.
Marketing strategy changes which started to be implemented towards the end of the quarter were expected to deliver better sales in the last quarter of the year, the company said.
Pizza Hut store numbers decreased from 105 in the third quarter last year to 98. A programme to progressively close red roof restaurants continued as leases expired or the opportunity to exit a store arose.
Starbucks Coffee had its 16th consecutive quarter of sales growth, up 5.6 per cent to $7.5m, while same store growth was 4.8 per cent.
Year to date, total sales of $25m were up 6.7 per cent and 3.2 per cent on a same store basis.
A "Pass the Cheer" Christmas promotion had pushed strong growth in merchandising sales which were up 38 per cent for the quarter compared to a year ago.
The exit from Pizza Hut Victoria continued with only six stores remaining, Restaurant Brands said.
Restaurant Brands shares last traded at 92c, having ranged between 80c and $1.18 in the past year.
- NZPA