KEY POINTS:
Continued good performance by KFC helped Restaurant Brands lift total first quarter sales 4.1 per cent to $70.5 million.
Same store sales for the 12-week period to May 21 did even better, rising 4.4 per cent from the equivalent period last year.
The higher sales were mostly from continued strong growth at KFC, up 9.6 per cent as the brand continued to benefit from a transformation process, the company said.
Starbucks Coffee continued its steady growth, up 7.9 per cent from a year earlier.
Pizza Hut continued to under-perform, with sales down 9.1 per cent, although with some signs of improvement.
The results are the first since the sudden mid-March resignation of former Restaurant Brands chief executive Vicki Salmon.
At the time, chairman Ted van Arkel said an agreement had been reached that it was time for some new blood to come into the organisation.
At the start of this month, Restaurant Brands said it had called off discussions on a possible sale of the company, saying it had received a number of approaches from parties expressing interest but no firm proposal had ensued.
Today's results showed KFC, which contributed 65 per cent of total revenues, had a $4 million increase in sales for the quarter to $45.5m -- up 10.6 per cent on a same store sales basis.
The outcome was particularly pleasing as three stores were closed for part of the quarter for extensive refurbishment, the company said.
Continuing improvements in operating standards, together with some successful promotional activity and continuing benefits of an increasing number of major store transformations, contributed to the result.
Store numbers remained at 87.
The $17.4m of sales at Pizza Hut were an 8 per cent decline on a same store basis.
The business continued to make significant operational changes as part of a strategy to return to profitable growth in a competitive market, Restaurant Brands said.
Store numbers remained at 103 of which 15 were red roof restaurants. Six of those would be closed by the end of the year as part of a previously announced rationalisation of the restaurant network.
The $7.6m quarterly sales at Starbucks Coffee showed same store growth of 2 per cent.
Store numbers fell by one to 46 with the closure of a central Auckland store pending its relocation to a higher profile site later this year.
Today's results did not include Pizza Hut Victoria which has been classified as a discontinued operation.
It continued to be wound down as it sold stores to individual owners, with 17 of the original 50 stores remaining, Restaurant Brands said.
Of the remaining stores, 12 were subject to sale and purchase agreements and were expected to be transferred to new owners in the next six months.
Settlement of stores remained a slow process due to a number of factors including finalising complex lease and franchise transfer arrangements and training requirements for new franchisees, Restaurant Brands said.
During the quarter, total sales for the Victorian business were A$2.4m ($2.7m), decreasing 64 per cent on a year ago as stores were exited.
Restaurant Brands shares closed at 90c yesterday, just off its low for the year of 89c, with the price having slipped from $1.18 in late February.
- NZPA
