Restaurant Brands sales down

Fast food has proved to be not as recessionary proof as expected, with Restaurant Brands yesterday reporting a 6.5% fall in sales for the 16 weekends ended September 12.

Sales of $93.9 million in the quarter were $6.5 million lower than the previous corresponding period.

Sales of KFC had held up in the past two years but the Christchurch earthquakes, store closures and the disposal of Pizza Hut stores all hurt sales in the quarter. Same-store sales for Restaurant Brands were down 4.5%.

KFC total sales were down $600,000, or 0.9%, to $72.1 million on the pcp.

Starbucks Coffee same-store sales showed an increase of 6.2%, continuing the improving same-store sales trend seen in the latter half of last year. It was the highest quarterly same-store growth since the first quarter in 2009.

Pizza Hut same-store sales fell 13.5% in the quarter. Total sales were down $5.1 million, or 36.9%.

While store numbers were significantly down on the previous period with the sale of 11 stores to independent franchisees and three closures, the same-store sales fall continued to reflect the current difficult retail environment, the company said in a statement.

Chief executive Russel Creedy said Restaurant Brands had not been exempt from the effects of continued negative consumer sentiment and a weak retail environment that had been evidence since the increase in the GST rate last October.

The first half of the current financial year had seen pressure on sales and margins for the company across all three brands - with commensurate reduction in the reported profit.

"There is an expectation that the second half of the year will see higher levels of consumer confidence and better retail sales with the stimulation of the Rugby World Cup and improving general economic conditions."

Full-year profit guidance would be provided with the half-year results release on October 19.

 

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