KFC props up Restaurant Brands trading

Fast food conglomerate Restaurant Brands - which expects to make a profit announcement of about $11 million on April 9 - says total sales across its three businesses lifted 1.5 per cent during the fourth quarter to March 1.

Over the 13 weeks it sold $77.2 million worth of product, though the company noted the comparison was with a 12-week quarter at the same time last year

But on a same-store basis, the company's sales grew 3.9 per cent for the quarter, "a satisfactory result in the current climate".

Sales for the financial year - spread over 53 weeks and described as a "leap year" - were $309.1m, up 1.8 per cent on the previous year, but when compared with the equivalent of 52 weeks, were flat (down 0.1 per cent).

On a same-store basis, sales for the year grew 1.6 per cent, mainly driven by growth in the KFC business, where same store sales were up 5.5 per cent on the equivalent quarter last year.

Changes at KFC, its strong promotions and product offering had boosted sales growth in all those stores, contributing 69 per cent the group's total sales for the quarter - and a sales increase of $2.0 million for the equivalent quarter - to a total of $53.3m.

For the full year, the chicken chain's total sales exceeded $200 million for the first time at $211.5m, an increase of 4.3 per cent over the equivalent prior year and 4.1 per cent up on a same store basis. Same store sales growth in the previous year was 7.7 per cent.

KFC has so far updated 34 of the 84 stores in its network.

The separate Pizza Hut operation dropped 1.2 per cent in terms of same store sales, and 4.8 per cent in total, to $15.4m for the quarter.

Restaurant Brands blamed the closure of one of the 93 stores for this "disappointing" quarter, but said it was still an improvement on previous performance. Same store sales for the previous three quarters were down 4.3 per cent, 11.1 per cent and 7.1 per cent respectively.

For the full year, total sales of $64.6m for same stores were down 6.5 per cent on prior year and down 11.2 per cent in total with four less stores.

Starbucks Coffee's quarterly same-store sales increased by 3.6 per cent against prior year, but the closure of two stores since the 2008 quarter drove down total sales for the quarter by 2.7 per cent. It finished the quarter with 42 stores.

- NZPA