KFC revamp and promotions help Restaurant Brands dish up rise in sales

The tough economy appears to be helping fast food conglomerate Restaurant Brands, which has reported a 1.5 per cent rise in sales in the three months to March 1.

The company said yesterday it expects to announce an annual profit of about $11 million next month. Again its KFC business is driving growth, where same store sales were up 5.5 per cent on the equivalent quarter last year.

Refurbishment at KFC, its strong promotions and product offering had boosted sales growth in all those stores, contributing 69 per cent of the group's total sales for the March quarter - and a sales increase of $2 million for the equivalent quarter - to a total of $53.3 million.

An analyst at Forsyth Barr, Guy Hallwright, said the recession could also be helping.

"They may get some trade down from people who may have gone to more expensive chains. That's the theory and it seems to be working so far."

Across the company sales grew 3.9 per cent for the quarter.

Sales for the financial year were $309.1 million, up 1.8 per cent on the previous year, but when compared with the equivalent of 52 weeks, were down 0.1 per cent.

The separate Pizza Hut operation dropped 1.2 per cent in terms of same store sales, and 4.8 per cent in total, to $15.4 million for the quarter.

Restaurant Brands blamed the closure of one of the 93 stores for this "disappointing" quarter, but said it was still an improvement on previous performance.

Same store sales for the previous three quarters were down 4.3 per cent, 11.1 per cent and 7.1 per cent respectively.

For the full year, total sales of $64.6 million for same stores were down 6.5 per cent on prior year and down 11.2 per cent in total with four less stores.

Starbucks Coffee's quarterly same-store sales increased by 3.6 per cent against prior year.

Restaurant Brands remained steady at 70c.

- STAFF REPORTER, NZPA