Pizza up, chicken down at RBD

KFC sales, which account for more than two-thirds of the company's total sales, fell 3% in the latest quarter to $39.9 million, with same store sales down 3.5%.

CEO Jim Collier says the company is planning an intensive round of new product launches to improve the franchises' performance.

Total company sales for the 12 weeks ending February 26th grew 10% over the same period last year to $57.7 million, however the new figure includes receipts from the company's Eagle Boys pizza purchase.

The acquisition of the rival pizza chain, which have since been converted into Pizza Hut stores, helped push Pizza Hut sales for the quarter up by 60% on the prior year to $14.7 million

However same-store comparisons have not been provided because the company says the acquisition and conversion programme they are not meaningful.

Jim Collier says the latest sales result shows that the company's strategy of diversifying its revenue from its core KFC operation is working.

"Non-KFC sales for the quarter increased 58% compared to the prior year. They now represent almost a third - 31% - of total sales, up from 21% last year.

"This is the first full quarter since the completion of the Eagle Boys conversion and improvements in sales and margin seen in the fourth quarter of 2000 continue at an acceptable rate."

Mr Collier says Pizza Hut also has a number of new store opportunities to provide growth, with another three new delcos due to open this year, adding to the company's existing network of 60 delcos and 22 restaurants.

Same-store sales at RBD's coffee franchise, Starbucks, grew by more than 8% in the latest quarter, while total sales jumped 48% on the previous year to $3 million.

Mr Collier says the company plans to continue its rapid rollout of Starbucks this year with 13 new stores scheduled to open in 2001.

Comments from our readers

No comments yet

Add your comment:

Your name:
Your email:	Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Anti-spam verification:

Type the text you see in the image into the field below. You are asked to do this in order to verify that this enquiry is not being performed by an automated process.

Related News:

Restaurant Brands' 2Q sales rise 6.2 percent , led by Carl's Jr outlets
Is this the beginning of end for Starbucks?
Restaurant Brands bets on new brands to drive future earnings growth
Restaurant Brands expects 2014 profit will be marginally ahead of 2013
Restaurant Brands lifts 1st quarter sales 3.9 percent after adding Carl's Jr stores
Restaurant Brands scotches talk of buying Western Australian KFC stores
Restaurant Brands annual profit slips 4.5 percent, sees bigger earnings in 2013
Restaurant Brands 4th-qtr sales rise 4.5 percent as Carl's Jr makes up for Starbuck’s dip
Restaurant Brands 3Q sales creep higher
Restaurant Brands predicts flat annual profit, holds interim dividend