Restaurant Brands' sales decline for fourth quarter

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Restaurant Brands' sales fell 1.8 per cent in the fourth quarter to $73.9 million, as leading brand KFC saw its same-store sales decline.

For the group as a whole, same-store sales for the 12 weeks to the end of February were 2.5 per cent lower than a year earlier.

KFC's total revenue rose $500,000 to $54.2 million, but same-store sales fell 2.6 per cent from a year earlier.

Reasons for the decline included the size of the same-store fourth-quarter gain in the previous three years, not passing on the full October GST rise and continuing softness in retail spending, the company said.

In Christchurch, seven KFC stores closed after the February 22 earthquake, losing a week's sales worth more than $400,000. Five are expected to reopen next week.

Pizza Hut sales fell 11 per cent in the quarter from a year earlier to $12.6 million. On a same-store basis the fall was 4.2 per cent. The closure of eight Pizza Hut stores because of the earthquake lost more than $100,000 in sales for the week. Four stores are expected to reopen next week.

Starbucks Coffee quarterly sales fell 4.2 per cent to $7.1 million, but same-store sales were up 1.2 per cent.

For the year, total sales at Restaurant Brands were 2.1 per cent higher than a year earlier at $324.4 million.

Shares in Restaurant Brands closed down 10c at $2.31 on the NZX yesterday.

- NZPA