Restaurant Brands Q3 sales up 4.7pc

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Restaurant Brands New Zealand, the fast-food franchise holder whose stock has more than doubled this year, reported a 4.7 percent gain in third-quarter sales and reiterated its forecast for annual profit to jump 50 percent.

Total sales rose to $72.9 million in the 12 weeks ended December 7, from $69.6 million a year earlier, the company said in a statement today. Same-store sales climbed 7.2 percent.

Shares of Restaurant Brands have soared 140% this year as the company turned around the performance of its Pizza Hut chain in the face of fierce competition, and lifted sales from its most profitable KFC chicken outlets, making up for weaker returns from its Starbucks coffee stores.

Sales at KFC rose 7.4 percent in the third quarter, while revenue from Pizza Hut slipped 0.1 percent and Starbucks dropped 2.8%, the company said today.

“The current economic climate is still not adversely impacting overall positive sales growth for the company,” chief executive Russel Creedy said in the statement.

Full-year profit will rise to $17.5 million, the company said, reiterating a forecast it first made in November. That was its second upgrade in two months.

KFC accounted for almost 70 percent of total revenue and 90 percent of earnings last year.

Businesswire