16 Oct 2009

Restaurant Brands profit up

2:12 pm on 16 October 2009

Sizzling sales at KFC helped fast-food operator Restaurant Brands to more than double its half-year profit.

The company, which runs the KFC, Pizza Hut and Starbucks chains, made $8.9 million in the six months to September, compared to $2.6 million in the same period last year

Total sales rose 4.5% to $170 million, as people looked for cheaper eating options during the recession.

Strong results from KFC and Pizza Hut offseting a decline at Starbucks Coffee.

Restaurant Bands says margins also improved at KFC and Pizza Hut as it cut costs.

Restaurant Brand chief executive Russel Creedy says it's a pleasing result in what's been a challenging year.

Mr Creedy says KFC will continue to deliver solid profits in the second half of the year, and margins and sales at Pizza Hut should also improve.

But he isn't expecting such improvement at the hard-hit Starbucks chain until the end of the financial year.

Restaurant Brands will pay a higher dividend payout of 4.5 cents, and expects a $15 million full year profit.