Fast-food operator Restaurant Brands has warned that its annual result will be hit by the expansion of its pizza empire.
The parent company of KFC, Pizza Hut and Starbucks reported a deflated half-year net profit yesterday a result it blamed on costs associated with the amalgamation of rivalEagle Boys, which it bought last year, into the Pizza Hut operation.
The result was in line with market expectations and the Restaurant Brands' share price was unchanged yesterday at $1.55.
The company said net profit for the second half of the year was expected to be up on last year.
Restaurant Brands' net profit for the six months to June 18 was $6 million, compared with $7.4 million last year.
Chief executive Jim Collier said Pizza Hut's expansion through the Eagle Boys acquisition had so far met expectations, with sales up 64 per cent compared to the first half of 2000.
The number of Pizza Hut stores had grown from 47 last year to 82 after the merger.
More would open by next year. Eight to 10 new Starbucks coffee shops were due to open over the same period, and a new KFC store was planned for East Auckland's Botany Downs shopping centre.
Group-wide earnings before interest, tax depreciation and amortisation for the the half-year were up almost 13 per cent to $24.3 million. Total sales were also up almost 13 per cent to $135.6 million.
The company will pay an interim dividend of 4.5c a share on September 28.
