KEY POINTS:
Restaurant Brands is checking to see if its success with fried chicken has eaten into pizza sales after all-too-familiar sales figures yesterday.
Results to December 3 show KFC sales are still going up and Pizza Hut sales are still going down.
Chairman Ted Van Arkel says Restaurant Brands
is examining whether some customers were leaving Pizza Hut to buy KFC.
It was too early to reach any conclusions, he said.
"We are looking at whether people are looking at the marketing for KFC and saying 'I like that' and that is part of why we are losing Pizza Hut."
The company will be happy with any explanation on the relentless slide of Pizza Hut, which is countering growth since a makeover of KFC stores.
The fast food firm - whose brands also include Starbucks Coffee - reported total third-quarter sales were $69.1 million, up 1.8 per cent on last year.
Total year-to-date sales for the group were $233.2 million, up 4.1 per cent or 3.9 per cent on a same-store basis.
KFC sales are up 7.9 per cent or $3.4 million for the quarter to a record $45.6 million. On a same-store basis they are up 5.8 per cent.
KFC sales for the year to date were $151.8 million, up 8.7 per cent on same-store basis.
In contrast, Pizza Hut sales for the quarter are down 13.4 per cent to $15.9 million. On a same-store basis they are down 8.8 per cent.
In a comparison of the year-to-date, Pizza Hut same-store sales are down 6.6 per cent.
Forsyth Barr retail analyst Guy Hallwright said the results marked a surprising deterioration for Pizza Hut from the second quarter when same-store sales were down 4 per cent. Van Arkel said Pizza Hut's results were disappointing.
He said sales had started picking up in the latter part of the third quarter and start of the fourth and continued to be balanced by KFC.
The market always assumed the slide was due to new aggressive competition from Hell Pizza, owned by Burger King operator Tasman Pacific Foods and by Domino's Pizza.
Starbucks Coffee increased sales 5.6 per cent to $7.5 million and 4.8 per cent on a same-store basis. Restaurant Brands shares closed down 2c at 90c.
RESTAURANT BRANDS
Three months to December 3
Outlet Sales Change
KFC $45.6m up 7.9 per cent
Pizza Hut $15.9m down 13.4 per cent
Starbucks $7.5m up 5.6 per cent
Total $69.1m up 1.8 per cent
