Restaurant Brands sales pick up

By Phil Boeyen, ShareChat Business News Editor

Wednesday 27th June 2001

Restaurant Brands (NZSE: RBD) purchase of the Eagle Boy's pizza chain continues to bolster quarterly sales although it's still hard to figure out growth trends.

For the 16 weeks to the middle of June, total sales at the company's three fast-food brands - KFC, Pizza Hut and Starbucks - stood at $77.9 million, up 14.6% on last year.

However last year's sales figures include little if any Eagle Boy's revenue, and in the latest quarter same-store comparisons have not been supplied.

"The acquisition and conversion programme mean same store sales comparisons for Pizza Hut are not meaningful. However, initial same store sales data will be provided for the third quarter," says CEO Jim Collier.

"This is only the second full quarter since the completion of the conversion programme and the improvements in sales and margins continue at a rate consistent with our plans."

Total Pizza Hut sales for the quarter rose 67.2% to $20.8 million, which is an improvement on the previous quarter rise of 60% to $14.7 million. However the previous quarter was for just 12 weeks compared to this quarter's 16 weeks.

Sales at the chain of Starbuck's cafes were up 59.5% on the previous year to $4.4 million, while same store sales grew 10.5%.

At the company's major revenue earner, KFC, sales were down slightly over last year, falling 0.1% to $52.7 million.

Same store sales were also down by 0.1%, although the company says that's an improvement compared with the 3.5% decline seen in the first quarter. Mr Colliers says reversing the decline trend has been due to the success of promotional and new product initiatives.

Restaurant Brands is due to announce its first-half financial results at the end of July, and while earnings before interest, tax, depreciation and amortisation will be up on last year, net profit after tax will be lower because of costs incurred from the Eagle Boy's acquisition.

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