Restaurant Brands’ same store sales soar

Restaurant Brands is continuing to serve up strong sales at its KFC and rejuvenated Pizza Hut stores, with same store sales up 7.2% in the third quarter for the year.

The fast food group’s total sales for the 12 weeks ended December 7 were $72.9 million, up 4.7% on the same time last year.

That follows steady growth over the year with increases of 4.8% and 4.3% in the previous two quarters, while the total year-to-date sales are up 4.6% to $242.6 million.

The company has spent the past two years restructuring and refurbishing its KFC and Pizza Hut businesses and same store sales have benefited from that, with a same store sales increase of 6.8% for the group over the year so far.

The same store KFC sales were up a full 10%, with total sales up 7.4% to $51.4 million.

The company is planning to have half of its KFC store transformations completed by the end of the year and store numbers have remained stable at 84 during the quarter, although one new store is scheduled to open in Greenlane, Auckland tomorrow.

The Pizza Hut business is continuing its long turnaround, with same store sales up 1.9%, although total store sales saw a slight 0.1% drop.

Total same store sales for the year to date are up 4.2%, with the number of stores down two from last year to 92 as dine-in restaurants gradually disappear following the expiration of leases.

Starbucks Coffee is now taking Pizza Hut’s place as the main drag on Restaurant Brands’ results. Quarterly same store sales were down by 0.6%.

But this was still better than the 2.3% and 5.0% drops seen in the previous two quarters and trhe company said the softening in demand for coffee and food lines has eased with changes in pricing, product mix and promotional activity beginning to bear fruit.

Same store sales were down 2.9% for the year to date.

Overall sales are still stronger than originally expected and Restaurant Brands has stuck to its recent profit forecast of about $17.5 million, up 50% on the prior year’s result.