Profit to halve for Restaurant Brands

Fast-food company Restaurant Brands warned last night that net profit for the six months to September 11 could be less than half what it was for the same period last year.

Net profit was likely to be between $2.5 million and $3 million compared with $6 million a year earlier.

The listed company, which holds the New Zealand franchises for KFC, Pizza Hut and Starbucks Coffee, said cost increases (in labour, raw materials, utilities and freight) and tightening economic conditions had squeezed margins.

Total sales were likely to be up by about 1.2 per cent.

Restaurant Brands shares closed down 1c at $1.19. The announcement was made after the markets had closed.