Pizza Hut Performs, but Starbucks Sales Slump

According to a report from the National Business Review, “fast food giant Restaurant Brands is starting to see some returns from the slow turnaround of its Pizza Hut business, but coffee sales at its Starbucks stores have fallen over the past six months.”

“Overall, the company reported a net profit after tax for the half year excluding non-trading items of $9.2 million, up 89.4% on the previous year and above previous market guidance of $8.7 million. KFC remained the primary driver for Restaurant Brands (NZX: RBD), contributing to most of the 6.7% increase in same store sales for the half year ended September 14. But Pizza Hut has also come a long way after more than a year of restructuring and delivered the first growth in the brand’s sales for nearly four years. The pizza chain’s improved performance meant the company did not need to take up any further impairment charge to the carrying value of goodwill on the Pizza Hut business, after taking a $2.5 million hit in the previous six months. This led to a 240% spike in the company’s reporting profit, up to $8.9 million, with total revenues up by 4.6% on the previous year to $169.9 million,” the story said.