First NZ Taco Bell store brings in $100k a week

Restaurant Brands' first Taco Bell store has proved popular raking in $100k in sales a week for its first three weeks. Photo/Thongrob Promchin.

Restaurant Brands lifted third-quarter sales 5.8 per cent as the company saw steady growth across its three operating divisions in New Zealand, Hawaii and Australia.

The quarter was the first to include three weeks of sales from the fast-food operator's new Taco Bell store in Auckland, which contributed $300,000 to the 12 weeks ended December 2.

The first three weeks of sales figures from the WestCity outlet came in at $100,000 per week. In contrast, the average KFC in New Zealand sold about $70,000 worth of fried chicken per week during the third quarter.

The Auckland-based company lifted sales to $192 million in the period from $181.5m a year earlier, it said in a statement.

In the year to date, the company's same-store sales rose 3.6 per cent to $634.5m.

Sales from its New Zealand operations were up 5.2 per cent at $99.6m, despite last year's sale of its Starbucks Coffee business which had contributed $3m in the year-earlier period.

The number of stores across its brands fell by two across the quarter, as four closures in Hawaii were offset by five new KFCs in New Zealand and the opening of Taco Bell in West Auckland.

Another store for the Mexican chain is planned in Auckland's central city, with a liquor licence application filed by the company seeking the ability to sell alcohol until 1am, seven days a week.

The property at 3 Shortland Street is currently an Asics shoe outlet.

The company's Australian KFC sales were up 5.1 per cent at $46.5m while Hawaii revenue rose 7.7 per cent to $45.8m, due largely to 10.5 per cent increase in Taco Bell sales.

In October, the fast food operator said net profit would be at least 10 per cent higher next year as margins improved at its KFC stores, which account for half of revenues.

Net profit for the 28 weeks ended September 9 was $20m, which is 2 per cent lower than the first half of 2019. That included $2.9m of extra costs from new accounting standards for leases.

The company advised in April it would scrap its interim dividend for the current financial year to support its growth plans.

Mexico's Finaccess Capital took control of the company in a partial takeover last year, paying $9.45 a share for 75 per cent of the stock.

Shares of the listed fast food operator recently traded at $11.66, up 1 per cent today, and have climbed 40 per cent since the start of the year.

(BusinessDesk)