Restaurant Brands New Zealand has extended its KFC footprint across the Tasman, buying 10 stores from Yum! Restaurants International for A$27.5 million (NZ$31.1m).
The acquisition lifts its total number of stores in the state of New South Wales to 57. The new stores are expected to generate annual sales of A$29m and earnings before interest, tax, depreciation and amortisation of A$4.5m, the Auckland-based company said in a statement.
The fast-food operator made its first foray into Australia in April last year, buying QSR Pty, the biggest KFC franchisee in NSW with 42 stores for cash and shares. It picked up another five independent outlets in the first quarter.
The acquisition is for existing operating stores and doesn't include any potential new sites, although a number of these are currently under negotiation with Yum!, it said. Chair Ted van Arkel said Restaurant Brands expects to have 60 stores in NSW by year-end.
KFC is the company's biggest business, including 92 stores in New Zealand, generating combined sales of about $101m in the first quarter. the company also has 34 company-owned Pizza Hut stores in New Zealand and 59 operated by independent franchisees. In March it acquired 45 KFC outlets and 37 Taco Bell stores in Hawaii, Guam and Saipan.
