Restaurant Brands first-quarter sales jump 15%, driven by KFC, Carl's Jr

Restaurant Brands sales rose to $89.1 million in the 12 weeks ended May 25 from $77.7 million in the year earlier period, the Auckland-based company said in a statement. Photo: Christine Cornege.

Restaurant Brands, New Zealand's largest fast-food store operator, increased first-quarter sales 15 per cent as revenue jumped at fried chicken outlet KFC, its largest unit, and it added more stores to burger chain Carl's Jr.

Sales rose to $89.1 million in the 12 weeks ended May 25 from $77.7 million in the year earlier period, the Auckland-based company said in a statement.

Same-store sales, which excludes changes in store numbers, increased 7.6 per cent, it said.

The company's KFC unit, which accounts for almost three quarters of sales, boosted revenue 13 per cent to $64.4 million in the quarter, ahead of the 5.2 per cent pace a year earlier, as it refurbished stores, stepped up marketing and extended the chain's opening hours.

It added one store in Albany, taking the total in the chain to 92, and excluding this addition same-store sales rose 9.8 per cent.

"Successful promotions in the quarter were the 'Super Zinger Burger', 'Zinger Stacker Burger', the innovative 'Crispy Burrito' as well as a highly successful 'Super Bucket' with a free rugby ball as part of the KFC New Zealand Super Rugby teams' sponsorship," the company said.

Shares in Restaurant Brands rose 1.4 per cent to a two-week high of $4.44, and have gained 19 per cent so far this year.

Carls Jr, the company's newest brand, more than doubled sales to $8 million from $3.7 million after it added 10 stores to the chain, taking the total to 18.

Same-store sales slipped 5.2 per cent, compared with a 36 per cent drop in the year earlier period.

Some stores showed positive growth while others rolled over high opening period sales, the company said.

Pizza Hut sales fell 7.6 per cent to $10.5 million as the company exited four stores in line with its plan to sell under-performing outlets to franchisees, taking its total to 46.

Same-store sales slipped 0.5 per cent as the year-earlier period was boosted by a 'Hot Dog Stuffed Crust' promotion. Some 43 Pizza Hut stores are now operated by independent franchisees.

The company's Starbucks Coffee chain increased sales 6.6 per cent to $6.1 million even as it had one fewer store than the year earlier period, taking its total to 26.

Same-store sales jumped 8.9 per cent, ahead of the 5.5 per cent increase in the year earlier period, as the chain benefited from better value and improved customer experience initiatives implemented over the past two years, it said.