KFC drives 70% profit boost for Restaurant Brands
A record year for KFC has helped Restaurant Brands increase its profit to almost $20 million in the year to February.
The company’s group net profit after tax for the year excluding non-trading items was $19.9 million, up 70% or $8.2 million compared to last year.
Group revenue was up $8.8 million (2.8%) to $318.3 million and same store sales were up 6.8%.
KFC was the standout performer for the group achieving a record year with sales of $223.2 million, up 9.2% on a same store basis.
Pizza Hut has bounced back from a few slow years with sales of $64.2 million, up 3.9% on a same store basis but down 0.7% overall as a result of having two fewer stores.
However, Starbucks has been a disappointment, down 2.9% on same store sales with overall sales of $30.5 million, down 2.5%.
Total store ebitda for the year was up $11.2 million to $54.9 million, with KFC contributing $8.3 million of the improvement, Pizza Hut $2.6 million and Starbucks $0.3 million.
Bank debt was reduced by $16.6 million and Restaurant Brands has declared a final full year fully imputed dividend of 8c a share, bringing the full year dividend to 12.5c, up 5.5c from the prior year.
The company plans to open at least two new KFC stores this year and it expects same store growth to continue.
It will also be looking to sell Pizza Hut stores to independent franchisees and will continue to close unprofitable stores.
Meanwhile it expects Starbucks to return to same store growth this year.
Restaurant Brands shares were priced at $2.03 before trading on the NZX opened today.