Restaurant Brands’ total sales during the first quarter of the financial year (12 weeks ended May 25) were $89.1 million, an increase of 14.7 per cent or $11.4 million on the equivalent period last year.
Of the total increase, KFC contributed $7.5 million, driven by strong same store sales. Carl’s Jr contributed a further $4.4 million, mostly from higher store numbers following the acquisition of seven Auckland-based Carl’s Jr stores.
Same store sales for the company were up 7.6 per cent, led by KFC which grew 9.8 per cent and Starbucks Coffee up 8.9 per cent. Pizza Hut was slightly down at 0.5 per cent, with Carl’s Jr down 5.2 per cent.
KFC
Total sales for KFC were $64.4 million, up 13.2 per cent (compared with 5.2 per cent growth the year before) or $7.5 million on the equivalent period last year.
Same store sales were up by 9.8 per cent. The strong sales continue to be driven by the store transformation program, increased marketing spend and longer store opening hours. Successful promotions in the quarter were the super zinger burger, zinger stacker burger, the crispy burrito as well as a highly successful super bucket with a free rugby ball as part of the KFC New Zealand Super Rugby teams’ sponsorship.
During the quarter a new store opened in Albany, bringing the total store count to 92, up one on the prior year.
Pizza Hut
Total sales for Pizza Hut were $10.5 million for the quarter, a decrease of 7.6 per cent on the equivalent period last year (compared with a 0.3 per cent increase in the prior year). This result is due to having four fewer stores as the company continued its strategy of selling lower volume stores to independent franchisees.
Same store sales for the quarter decreased slightly by -0.5 per cent compared to a 9.3 per cent growth in the same quarter of the prior year, which benefited from strong sales of the hot dog stuffed crust promotion.
There were 46 company stores at the end of the quarter versus 50 in the prior year. There are now 43 Pizza Hut stores operated by independent franchisees.
Starbucks Coffee
Starbucks Coffee total quarterly sales were $6.1 million, up $0.4 million or 6.6 per cent on the equivalent period last year, despite having one less store.
Same store sales were up 8.9 per cent (rolling over a 5.5 per cent increase in the prior year). This is a continuation of the growth in sales that has been driven by better value and improved customer experience initiatives implemented over the past two years.
Store numbers remained steady during the quarter at 26, but down one on the prior year.
Carl’s Jr
Total Carl’s Jr sales for the quarter were $8 million, an increase of 119.2 per cent on the equivalent period last year, driven by an increase of 10 new and acquired stores to the portfolio.
On a same store basis sales were down 5.2 per cent (compared to -36.2 per cent last year) with the brand showing positive growth for some stores, with other stores still rolling over high opening period sales.
The brand is beginning to build awareness and loyalty across the total network, which comprised 18 stores at the end of the quarter.
