Restaurant Brands boosted by Australian expansion

KFC_ARTARMON_STORE_FRONT_ENTRANCEListed QSR business Restaurant Brands (ASX: RBD) has posted an 11.7 per cent increase in sales to NZ$180 million in the first quarter, boosted by further investment in its Australian KFC business.

Delivering a sales update for the 12 weeks to 21 May on Thursday, RBD said the recent acquisition of a further 13 KFC stores in Australia had underpinned a 44.8 per cent increase in local sales to $39.9 million over last year.

RBD traded 61 KFC stores in Australia during the quarter, booking same-store-sales growth of 4.2 per cent for the quarter.

Australia continued to be the highest growth market for the business, with home market New Zealand posting a 2.8 per cent increase in sales to NZ$97.4 million in the quarter, while same-store-sales were up 3.7 per cent.

RBD operates 94 KFC stores across the Tasman, which accounted for the bulk of NZ sales, up 5.8 per cent in the quarter to NZ$75 million. Same-store sales were up 4.3 per cent.

The company’s Pizza Hut stores in NZ struggled, with sales down 5.4 per cent to $9.2 million on the back of three store closures. Same-store sales from company-owned Pizza Hut stores decreased by 5 per cent.

Non-company Pizza Hut stores appear to have performed better, with the total network of 98 stores recording a 1.2 per cent increase in sales to NZ$23.4 million.

Starbucks sales also fell on the back of two store closures, down 6.1 per cent to NZ$5.7 million, while same-store sales increased by 2.1 per cent.

The Carl’s Jr. network saw sales decline by 6.9 per cent to NZ$7.5 million during the quarter, with same-store sales down 2.8 per cent.

RBD’s Hawaiian venture grew, with total sales from both Taco Bell and Pizza Hut stores increasing by ten and 10.9 per cent respectively, bringing total sales in the market to NZ$28.5 million.

There are now 309 stores under RBD’s umbrella, up from 11 in the equivalent period last year.

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