KFC, Pizza Hut Defy Recession

According to a report on stuff.co.nz, “Restaurant Brands, the operator of the KFC and Pizza Hut franchises lifted second quarter sales 4.8 percent from a year earlier to $96.9 million.”

“Same store sales for the 16 weeks ended September 14 were up 6.9 percent, with KFC and Pizza Hut recording same store sales growth during the quarter, although Starbucks Coffee sales were down, Restaurant Brands said today. Last week the company said it expected half year net profit, excluding non trading items, to be around $8.7m, an increase of $4.1m on a year earlier. The improved profitability was largely due to sustained strong sales growth in the KFC brand and continued turnaround by Pizza Hut. The half year profit is to be announced on October 16. In today’s statement, Restaurant Brands said the economic recession had not adversely affected overall sales growth, with the 4.8 percent rise in the second quarter on top of a 4.3 percent lift in the first quarter.”

“Year-to-date total sales were $169.7m, up 4.6 percent on the prior year across the three brands, with year-to-date same store sales improving 6.7 percent. KFC, responsible for 70 percent of company sales with 84 stores, had second quarter sales growth of 7.6 percent to $68.2m. On a same store basis sales were up 9.2 percent. The increase in total sales was achieved despite the closure of three stores since the equivalent period last year, Restaurant Brands said. Two stores were closed for part of the quarter for extensive transformation, and it was planned to have almost half the stores in the network transformed by the close of the year, with three further stores scheduled for upgrades.”