Ginger group puts heat on cold coffee

By PAUL PANCKHURST

The Shareholders Association is putting the heat on fast-food company Restaurant Brands over a claimed lack of disclosure in the company's annual report.

In a letter to the company, association chairman Bruce Sheppard asks for more information to help investors assess the state of the 35-store Starbucks coffee chain.

Restaurant Brands has the franchises for Pizza Hut, KFC and Starbucks in New Zealand, and also runs Pizza Hut in Victoria.

"Starbucks is not performing, and there is nothing in the annual report that tells us what management is going to do about it," Sheppard told the Business Herald.

Same-store sales for Starbucks declined 8.1 per cent over the year to the end of February, and the company has shelved expansion plans to focus on existing outlets.

Starbucks' sales for the year were $22.8 million. Earnings before interest, tax and depreciation were $2.6 million.

In the letter, Sheppard says Starbucks appears to be the company's "orphan", with per store turnover of less than $700,000 and a lower per store contribution than Pizza Hut or KFC.

Investors needed more financial information - especially earnings before interest and tax - to get a fix on the state of the business.

Chief executive Jim Collier said the company needed time to respond.

The company's annual meeting is on May 21.