KFC boosts Restaurant Brands
KFC has chalked up a record $236 million in sales for its parent Restaurant Brands which today reported net profit for the food retail group up 25.8 per cent to $25.1m for the year to February.
The result - its best ever trading profit - was on the back of total group sales of $325m, up 2.31 per cent from $318.3m the previous year.
New burger promotions during the year underlined a shift to more of a snack bias in KFC's offerings, the group said.
These included the likes of the Supercharged Zinger Burger, the BLAT Burger and the Big Chicken Burger.
The frozen Krushers beverage range also continued to perform strongly with a greater range and roll out to stores supporting sales growth.
KFC's store transformations and new store openings continued to drive group sales and profit growth.
However, the profit result was a tale of two halves with performance much stronger in the first half than the second, the group said, due to an increasingly difficult retail market.
Total store earnings before interest, tax, depreciation and amortisation jumped $7m or 13 per cent to $62m.
KFC contributed $5.8m of that improvement, Pizza Hut $200,000 and Starbucks $900,000.
Same store sales for the group rose 2.4 per cent, compared to 6.8 per cent the previous year. KFC and Starbucks saw same stores sales growth of 4.4 per cent and 0.8 per cent respectively while same stores sales for Pizza Hut fell 3.8 per cent.
Store numbers for the group sat at 208, nine down on the year before. KFC opened four new stores and five Pizza Hut stores were sold to franchisees as part of the group's sell-down plan.
Three dine-in Pizza Hut stores and one delivery store were closed as were four Starbucks stores.
Pizza Hut, which lost impetus in the second half, had sales of $59.3m, down 7.6 per cent the prior year - largely due to nine fewer stores.
The Big New Yorker pizza was a major sales driver in the year.
Starbucks sales were down 3.8 percent to $29.3m for the year - but up 0.8 per cent on a same store basis.
Despite this the brand produced a solid earnings results reflecting cost reductions.
The Christchurch quake on February 22 saw all 19 group stores closed. Three Starbucks and one KFC in the CBD and one Pizza Hut in Shirley remain closed. Insurance polices are in place.
The company response included staff financial support, a $100,000 donation to the relief fund and 18,000 pieces of free chicken from the KFC Hornby store to relief workers.
There is a final fully imputed dividend of 10cps for a full year dividend of 17cps, up 4.5c or 36 per cent of the year before.
As to outlook, the group expects the retail marketplace to remain tough with strong competition for the consumer dollar but it expects some improvement with the Rugby World Cup in the third quarter.
The group gave no profit guidance.
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