Fast food operator Restaurant Brands has upsized its profit guidance thanks to stronger trading conditions and is now forecasting a full year net profit of $19.5 million.The forecast is a $2 million increase on the guidance given in December by the local
Fast food operator Restaurant Brands has upsized its profit guidance thanks to stronger trading conditions and is now forecasting a full year net profit of $19.5 million.
The forecast is a $2 million increase on the guidance given in December by the local owner of the KFC, Pizza Hut and Starbucks brands..
The company said the upgrade was driven by a stronger than expected trading over the last quarter of the year, led by sales at its KFC outlets.
It also attributed the result to the recent successful resolution of a pricing review with a major supplier has meant that the company will deliver a trading result ahead of previous expectations for the year.
In December, it announced it was splitting its purchases between New Zealand’s two largest chicken suppliers, with Inghams agreeing to supply the company’s North Island KFC stores, while Tegal Foods signed on to supply restaurants in the South Island.
Fast food companies have seen significant sales boosts during the economic slowdown over the past two years, with McDonalds recently confirming it had one of its best sales years in 2009.
Restaurant Brands' announcement today saw the share price (NZX:RBD) jump by almost 10% in morning trading to $2.
The annual profit announcement will be made on April 7.
