US burger chain in NZ franchise deal

Paris Hilton appears in an advertisment for Carl's Jr Burgers. Restaurant Brands is set to roll out a chain of Carl's Jr Restaurants in New Zealand. Photo / supplied

Restaurant Brands New Zealand will roll out a chain of Carl's Jr Restaurants after striking a franchise deal with US owner CKE Restaurants, adding to its existing KFC, Pizza Hut and Starbucks Coffee brands.

Restaurant Brands will be the second franchisee for Carl's Jr, which operates two of the restaurants in Auckland. Carl's Jr is strong in the western and south-western states of the US, offering a combination of burgers, burrito-style wraps, and KFC-like chicken options.

It focuses on "partial table service, a 'made-to-order' menu, all-you-can-drink beverage bars, and a strong breakfast offering," the company said in a statement today.

No financial details of the agreement with CKE were given in the statement and company executives weren't immediately available to comment.

Restaurant Brands expects to open the first restaurant by the middle of 2012.

The deal adds a third such franchise agreement for the New Zealand company, which operates KFC and Pizza Hut outlets under licence from Yum! Restaurants International and its coffee chain courtesy of Starbucks Coffee International.

Separately today, Restaurant Brands said sales in the third quarter fell 3.1 per cent to $71.9 million, mainly reflecting store closures in Christchurch following the earthquake, and the sale of Pizza Hut outlets.

KFC, the company's strongest performer, lifted sales in the 12 weeks ended December 5 by 0.9 per cent to $55.1 million though same-store sales fell 1.6 per cent.

Pizza Hut sales dropped 17 per cent to $10.7 million, while same-store sales declined 1.6 per cent.

The company sold 11 stores to independent franchisees and closed three others.
Sales at Starbucks fell 9.5 per cent to $6.1 million, reflecting three outlets closed at the end of their leases and a further three in Christchurch still shuttered after the earthquakes.

The company had a total of 195 stores at the end of the latest quarter, down from 211 a year earlier.

KFC outlets rose to 89 from 88, Pizza Hut fell to 71 from 85 and Starbucks declined to 35 from 38.

The company's shares rose 0.5 per cent to $2.10 and have dropped 19 per cent this year.