14 Dec 2010

KFC leads Restaurant Brand sales rise

12:35 pm on 14 December 2010

The owner of the KFC, Pizza Hut and Starbucks chains says sales rose 1.8% to $74.2 million in the three months to early December compared with the same period a year ago.

Sales at stores open at least a year rose 1.8%.

KFC accounts for three quarters of sales, and has been the driving force behind Restaurants Brands momentum, as store refurbishments and new products have attracted budget-conscious diners.

At Pizza Hut, by contrast, same store sales declined nearly 6%. Two stores were sold and another, in Wellington, closed.

Restaurant Brands says another three stores have been sold.

The company has focused on improving its Starbucks operations, and has been rewarded with modest growth in same store sales, while it closed an underperforming Auckland outlet.

In October, Restaurant Brands said it expected a flat second half year profit due to the hike in GST and higher raw material costs, and it forecast full year earnings of between 24 million and 26 million dollars.