Restaurant Brands Q1 sales rise 9.3 per cent

By NZPA

Wednesday 29th May 2002

Fast food operator Restaurant Brands said today sales in the first quarter ending May 20 rose 9.3 percent to $64.1 million compared with the same time a year ago.

Sales rose across all the group's brands including KFC, Pizza Hut and Starbucks Coffee, chief executive Jim Collier said.

KFC sales were $41.8 million, up 4.9 percent on a year earlier. On a same store basis sales were up 4.5 percent.

Pizza Hut sales rose by 10.5 percent to $17.1 million, with same store sales up 6.3 percent.

Starbucks Coffee sales were $5.2 million, up 58.4 percent on a year ago, although same store sales fell by 10.9 percent.

Shares in Restaurant Brands rallied 3 cents to $2.05 following the announcement.

Mr Collier said KFC's result was driven by solid growth in the takeaway sector and the relaunch of the brand's chicken burger range.

The company plans to refurbish its KFC stores during the next two quarters, he said.

Pizza Hut continued to benefit from the takeover of the rival Eagle Boys chain in 2000 and the expansion of its home delivery and takeaway outlets.

Same store sales declined at Restaurant Brands' fledgling Starbucks chain due to "cannibalisation" by other new Starbucks outlets, Mr Collier said.

During the quarter, four new Starbucks Coffee outlets were opened -- in Tauranga, New Plymouth and in Lambton Quay and Courtney Place in Wellington.

A new KFC drive-through restaurant was opened in Otahuhu, Auckland, replacing an outlet which had no drive-through facility, while new Pizza Hut delcos (delivery/takeaway outlets) were opened in Dunedin and Whangaparaoa. A third delco was also opened in an improved location in Church Corner, Christchurch.

Two new Pizza Hut delcos are planned for the next quarter -- in Levin and Pukekohe -- and a Starbucks store will be opened in Invercargill.

Mr Collier said sales figures for Restaurant Brands' new operation in Victoria, Australia, would be included in the second quarter result. The company bought 51 Pizza Hut outlets in Victoria in late April.

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