Fast food giant Restaurant Brands is starting to see some returns from the slow turnaround of its Pizza Hut business, but coffee sales at its Starbucks stores have fallen over the past six months.

Overall, the company reported a net profit after tax for the half year excluding non-trading items of $9.2 million, up 89.4% on the previous year and above previous market guidance of $8.7 million.

KFC remained the primary driver for Restaurant Brands (NZX: RBD), contributing to most of the 6.7% increase in same store sales for the half year ended September 14.

But Pizza Hut has also come a long way after more than a year of restructuring and delivered the first growth in the brand’s sales for nearly four years.

The pizza chain’s improved performance meant the company did not need to take up any further impairment charge to the carrying value of goodwill on the Pizza Hut business, after taking a $2.5 million hit in the previous six months.

This led to a 240% spike in the company’s reporting profit, up to $8.9 million, with total revenues up by 4.6% on the previous year to $169.9 million.

The one glum spot to be found in today’s results was the continued weakness in coffee and food sales at Starbucks, with total sales of $16.1 million, down 7.1% on the prior year and 3.8% on a same store basis.

Restaurant Brands said it was planning management changes, a tighter emphasis on store efficiencies and a new food programme, while also counting on a boost from the higher exchange rate, to restore sales growth and profitability by the end of the year.

KFC remains the dining-out choice for many budget conscious consumers, with an 8.8% rise in same-store sales.

The company attributed a strong pipeline of new product and promotional activity – as well as a continued store transformation programme – to much of the sales growth, leading to a 26.1% rise in ebitda.

Restaurant Brands will have almost 50% of its KFC 84 stores transformed into the new format by the end of the year.

Pizza Hut saw same store sales growby of 5.2% for both the first and second quarters of the year, with overall sales up by 2.4% to $35.4 million.

The company is keeping a tight grip on the brand, with strong operational controls over wastage and labour, loss prevention initiatives and some changes to menu with higher margin products all contributing to the improved margin.

The increased sales have also strengthened Restaurant Brands balance sheet, with debt slashed from $40.8 million in the previous half year to $19.8 million.

Higher profit and that stronger balance sheet has seen an interim dividend of 4.5 cents per share, up 50% up on last year.

It is now forecasting a full year profit in the vicinity of $15 million.