Restaurant Brands first-quarter sales jump 67% on overseas expansion
Restaurant Brands New Zealand boosted first-quarter sales by 67 percent after the fast-food operator expanded to Australia, Hawaii, Guam and Saipan.
The Auckland-based company said sales increased to $161.2 million in the 12 weeks ended May 22, from $96.6 million in the equivalent period a year earlier. New Zealand operations lifted sales 7.1 percent to $94.8 million, while Australia contributed $29.7 million and its Hawaiian operations added $36.7 million. On a same-store basis, sales rose 7.2 percent.
New Zealand's largest fast-food operator is expanding into new overseas markets to drive future earnings growth. In April 2016 it expanded into KFC in Australia and in March 2017 bought the largest fast-food operator in Hawaii.
In New Zealand, the company's 92 KFC stores lifted sales 8.4 percent in the first quarter to $70.9 million, while its 34 Pizza Hut stores increased sales 5.1 percent to $9.7 million, the 24 Starbucks Coffee stores lifted sales 2.3 percent to $6.1 million, and the 19 Carl's Jr outlets increased sales 2 percent to $8.1 million. The company sold one of its Pizza Hut stores to an independent franchisee in the period, taking the number of stores operated by independent franchisees to 59 out of a total network of 93 stores.
In Australia, the company acquired another 5 independent KFC franchise stores in the first quarter, taking its total KFC store numbers across the Tasman to 47. Its Hawaiian-based operations include 37 Taco Bell and 45 Pizza Hut stores.
The company's shares advanced 1.1 percent to $5.73.