KFC poised to expand after strong full year sales
Restaurant Brands is planning to expand the number of KFC restaurants it operates across New Zealand and Australia off the back of strong sales over the 12 months to February 2019, which contributed to the group’s overall 7.2 per cent increase in full-year sales of $794 million.
In New Zealand, KFC’s operations improved 5.3 per cent over the period to $336.5 million, and 4.3 per cent on a same-store basis, while Australian operations grew 27.8 per cent to $178.3 million, thanks to new store acquisitions in the period. Same-store-sales grew 4.7 per cent.
The performance of Pizza Hut, however, was less impressive, having seen a 14 per cent decrease in sales to $35.4 million – down 6.1 per cent on a same-store basis.
In Australia, Starbucks saw a 4 per cent increase in sales to $15.98 million (A$15.4 million), and was sold to Tahua Capital on 23 October 2018, while Carl’s Jr. saw an 8.8 per cent decline in total sales to $31.87 million (A$30.7 million). Same-store-sales also fell 3.3 per cent over the year.
The group is currently in the midst of a partial takeover, with investor Finaccess Capital having proposed to acquire up to 75 per cent of the group’s shares for a premium of NZ$9.45 ($8.68) cash per share.
Restaurant Brands shares currently sit at $8.62 on the NZX, and A$7.33 on the ASX, and . Currently, Finaccess has secured 33.71 per cent, or just over 42 million, shares.
The board of Restaurant Brands “unanimously” recommends shareholders accept the partial takeover offer, which closes on 12 March 2019, based on the absence of a superior proposal.