Restaurant Brands profit creeps higher
Fast-food retailer Restaurant Brands has posted an after-tax profit of $19.95 million in the year to February 24, up 23.5 per cent on the previous year.
The result was boosted by the company selling and leasing back some property.
Excluding these one-off items, the net profit was up 6.8 per cent to $18.9m.
Group revenue was up $17.6m (5.6 per cent) to $330.4m, boosted by growth from KFC (up 1.9 per cent) and the rollout of the Carl's Jr brand.
Strong performances by Pizza Hut and Starbucks Coffee, as well as positive earnings from Carl's Jr, offset slightly reduced KFC margins.
Restaurant Brands will pay a final fully imputed dividend of 10 cents a share on June 27, making a full-year dividend of 16.5c, up 3.1 per cent on the previous year.
It had mixed results among its brands, with KFC seeing revenue growth but reduced margins because of aggressive competition.
Pizza Hut increased sales by $500,000 (1.1 per cent) despite the closure of six stores, thanks to same-store sales growth of 15.3 per cent. This followed 21.2 per cent same-store sales growth in the previous year.
Starbucks Coffee saw sales dip 0.3 per cent to $25m with two fewer stores, but same-store sales grew 5.7 per cent.
Total sales for the year were $14.3m at Carl's Jr. Six stores were opened during the year.
"Bringing a new brand to market in a competitive environment has been a challenge in its first full year of operation," the company said.
"New-store openings meant significant setup costs, particularly in recruiting and training staff."