Hungry KFC-eaters continue to bolster earnings at Restaurant Brands, which today revealed a 51.1% lift in half-year net profit to $13.5 million.While higher profits were reported across the three KFC, Starbucks and Pizza Hut franchises, it was the KFC cha
Hungry KFC-eaters continue to bolster earnings at Restaurant Brands, which today revealed a 51.1% lift in half-year net profit to $13.5 million.
While higher profits were reported across the three KFC, Starbucks and Pizza Hut franchises, it was the KFC chain that primarily drove the 3.9% rise in revenue to $176.6 million, for the six months to September 13.
Strong growth at the fried chicken chain during the winter months continued to be driven by its store transformation programme and successful promotions, with total revenue of $127.1 million up $8.8 million, or 7.5% on the same time last year.
Pizza Hut sales fell $1.6 million or 4.6% to $33.8 million after three loss-making stores were closed.
However, stronger controls over wastage and labour and the introduction of higher-margin products to the menu helped drive the EBITDA margin to 9.3% of sales.
Sales at Starbucks Coffee fell $0.6 million of 3.8% to $15.5 million with three less stores, returning to positive growth in the second quarter after five quarters of decline.
Operational improvements at Pizza Hut and Starbucks were expected to continue into the second half, offset by input price increases.
Restaurant Brands reaffirmed previous guidance of a full-year profit of $24-$26 million.
“Economic storm clouds still remain on the horizon and the full impact of the GST increase versus lower direct tax rates has yet to work through into consumer spending. Consumer sentiment is not bullish,” the company said in a statement.
Restaurant Brands will pay an interim dividend of 7 cents per share on November 26.
Shares in Restaurant Brands rose 40 cents or 1.59% to $2.56 this morning, against this morning, against a year high of $2.61 and low of $1.43.
