KEY POINTS:
Restaurant Brands total sales across its three brands were down 1.3 per cent to $92.4 million in the second quarter, although same store sales increased 1.2 per cent.
In a continuation of previous patterns, the Pizza Hut operation was a drag on the company during the 16 weeks to September 8, while KFC sales grew.
Overall sales growth at Starbucks Coffee came to an end, although same store sales did rise on a year earlier.
Year to date total sales for the group were down 1.1 per cent to $162.3m, with same store sales improving 0.9 per cent.
In the latest quarter, KFC total sales were up 4.4 per cent on a year earlier, benefiting from continuing investment in store transformation, consistent marketing message and menu development, the company said today.
"This was a particularly satisfactory result in the face of tighter economic conditions, rising consumer prices and reported general downturn in retail sales."
KFC sales increased $2.7m for the quarter to $63.4m, with sales up 5.5 per cent on a same store sales basis.
Three Auckland KFC stores were closed for part of the quarter for extensive transformation work. At the end of the quarter, a total of 33 stores had been transformed of the 87 stores in the network.
For the year to date, KFC sales of $110.4m were 4 per cent up, with same store sales also up 4 per cent.
Starbucks Coffee quarterly sales declined by 2.2 per cent to $9.6m, with store numbers down two on a year ago after some poorer performing shops were closed.
On a same store basis, sales for the quarter increased 2.6 per cent.
Year to date total sales were down 0.6 per cent to $17.3m, but sales were up 4.4 per cent on a same store basis.
"Pizza Hut continues to be of some concern, with total quarterly sales declining by 15.9 per cent, although the quarterly same store decline was 11.1 per cent," Restaurant Brands said.
The total number of stores was down by six on a year earlier, as part of a progressive programme to close red roof restaurants.
Pizza Hut second quarter sales were $19.4m, while for the year to date they were down 14.7 per cent to $34.6m, with same store sales down 9.4 per cent.
"Sales for the brand remain of some concern and, as a result, there have been recent significant changes to the menu, marketing strategies and advertising agencies," Restaurant Brands said.
Restaurant Brands shares were unchanged on 65c around late morning, in a market down 2.5 per cent as it reeled from global financial turmoil.
- NZPA
