20 Sep 2011

Restaurant Brands sales fall

5:30 pm on 20 September 2011

Sales at fast-food chain operator Restaurant Brands have fallen as quake-hit stores in Christchurch remained closed.

The listed company, which runs the KFC, Pizza Hut and Starbucks chains, generated sales worth $94 million in the 16 weeks to the middle of September - down 6.5% on the same period last year.

The earthquake on 22 February and the aftershock on 13 June dented Restaurant Brands' sales and meant the closure of one KFC, one Pizza Hut and three Starbucks stores.

Restaurant Brands chief executive Russel Creedy says the company lost about $1.3 million in sales in the quarter. It has managed to reopen only the Pizza Hut store.

Nationally, sales at the Pizza Hut restaurants slumped 13.5% during the quarter as Restaurant Brands closed three stores and sold 11 more to independent franchisees.

Sales at its star performer, KFC, fell 3.5% but its Starbucks coffee chain continued to bounce back, with same-store sales rising more than 6%.

Restaurant Brands says it has not been immune from the negative consumer sentiment and weak retail environment since GST went up in October, and sales and margins have been under pressure.

However it expects the Rugby World Cup and improving economy to stimulate sales in the second half of the year.