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Restaurant Brands announces full year results for the year ended 29 February 2012

Key points

• Group Net Profit after Tax (excluding non-trading items) was $18.4 million (18.8 cents per share), down  27% on prior year.
• Total Group Revenue of $308.9 million was down $16 million (4.9%) mainly from the impact of the Christchurch earthquake ($5.9 million) and sell down of Pizza Hut stores ($5.9 million).
• KFC sales reached a new high of $236.3 million with store transformations continuing to produce positive sales and profit growth.
• The Pizza Hut sell-down programme is gaining momentum with 13 stores now sold to independent franchisees.
• Despite reduced operating cash flows, correspondingly lower capital expenditure meant debt levels finished close to prior year at $13.6 million.
• A final fully imputed dividend of 9.5 cents per share, making a full year dividend of 16.0 cents for the year, will be paid on 29 June.
• Carl’s Jr rights were acquired for New Zealand as the company’s fourth brand.

Restaurant Brands announces fourth quarter sales results

Restaurant Brands NZ Limited’s full year sales for the year ending 27 February 2012 were $308.2m. This is a decrease of $16.2m on the previous year, mainly arising from lost sales from store closures in Christchurch following the 22 February 2011 earthquake ($5.9m) and the sell down of Pizza Hut stores to independent franchisees ($5.9m). On a same store basis sales were down (2.5%) for the year. 

KFC saw an increase of $0.5m (0.2%) in total sales for the year to $236.3m, rolling over a 5.6% increase in the prior period.  This was despite having one store in Christchurch closed for the entire year.  Pizza Hut’s annual sales were down $13.8m of which $5.9m was as a result of the sell down of eight stores this year to independent franchisees.  Starbucks Coffee also recorded a decline in total sales of $2.9m of which $2.5m is due to the closure of three stores in the Christchurch CBD for the entire year.

On a same store basis, KFC’s annual sales were down 1.8%, Pizza Hut recorded a 9.7% decrease and Starbucks Coffee saw an annual increase of 5.4%.

For the 4^th quarter, total sales across the company’s three brands were down $4.1m or 5.5% with the earthquake-affected stores making up $1.1m and the effect of Pizza Hut stores being sold to franchisees making up $1.8m of the decline.  Same store sales decreased 1.8% with the KFC and Pizza Hut operations recording same store declines and Starbucks Coffee continuing to record modest same store sales growth.

A total of four stores (one KFC and three Starbucks Coffee) in Christchurch city remained inaccessible with KFC Christchurch CBD closed permanently.  

Restaurant Brands acquires Carl's Jr as its fourth brand

Restaurant Brands New Zealand Limited has acquired the rights to operate a fourth brand in New Zealand. The company will build and operate the Carl’s Jr. chain of restaurants in this country, adding to its current stable of KFC, Pizza Hut and Starbucks Coffee businesses. 

The Carl’s Jr., brand, owned by US-based CKE Restaurants, Inc., specialises in offering best in class premium-quality burgers with a marketing proposition that targets youthful demographics. Carl’s Jr. restaurants offer unique service attributes focusing on ‘partial table service’, with a ‘made-to-order’ menu, all-you-can-drink beverage bars, and a strong breakfast offering. 

Restaurant Brands will work closely with the existing New Zealand Carl’s Jr. franchisee, which has already fully tested the concept in this market with two restaurants currently operating in Auckland. 

Under the terms of its Development Agreement, Restaurant Brands has the exclusive development rights to build restaurants throughout New Zealand to complement the existing franchisee’s rights to develop a limited number of restaurants in Auckland.  Restaurant Brands is familiar with these shared arrangements, working with independent franchisees in both its KFC and Pizza Hut brands.

Restaurant Brands expects to be able to open its first restaurant by the middle of next year .

Restaurant Brands announces third quarter sales results

Restaurant Brands' total sales for the third quarter (12 weeks ended 5th December 2011) were $71.9 million, a decrease of 3.1% or $2.3   million on the equivalent period last year.  The sales reduction is primarily attributed to store closures in Christchurch following the earthquake and the disposal of Pizza Hut stores.  Same store sales were down 0.9%. 

KFC total sales were up $0.5 million or 0.9% in the quarter (compared with a 6.2% increase in the prior year).  Starbucks sales decreased 9.5% and Pizza Hut sales decreased by 16.8%. 

KFC same store sales were down 1.6% (versus a 3.9% increase in the prior year). Starbucks had an increase of 6.8% and Pizza Hut saw a decline of 1.6%.

The Christchurch earthquakes continued to adversely affect total sales during the quarter.  A total of four stores (one KFC and three Starbucks Coffee) in Christchurch city remained closed.  Total estimated sales lost from the earthquake for the quarter are around $1.1m.

Restaurant Brands announces half year results for the half year ended 12 September 2011

Key Points:

• Net Profit after Tax for the half year (excluding non-trading items) was $8.6 million or 8.7 cents per share (38.4% down on prior year). Reported profit (including non-trading items) was $7.5 million.
• Total revenues of $166.8 million were 5.5% down on prior year, with the Christchurch earthquake accounting for 40% of the total decline.  Same store sales were down 3.5% for the half year, mainly from a lower Pizza Hut performance.
• Earnings fell across all three brands to a total EBITDA of $25.9 million, a decrease of $8.0 million (or 23.7%) on the previous half year, as a result of lower sales and higher input costs.
• Directors have declared a fully imputed interim dividend payable on 25 November 2011 of 6.5 cents per ordinary share, down 0.5 cents on last year.

Restaurant Brands announces second quarter sales results

Restaurant Brands' total sales for the second quarter (16 weeks ended 12 September 2011) were $93.9 million, a decrease of 6.5% or $6.5 million on the equivalent period last year.  The sales reduction is partly due to store closures in Christchurch following the earthquake and the disposal of a number of Pizza Hut stores. Same store sales were down 4.5%.

 KFC total sales were down $0.6 million or 0.9% in the quarter (compared with a 6.7% increase in the prior year).  Starbucks Coffee sales decreased 8.3% and Pizza Hut sales decreased by 26.9%.

 KFC same store sales were down 3.5% (versus a 5.9% increase in the prior year). Starbucks Coffee had an increase of 6.2% and Pizza Hut saw a decline of 13.5%.

Restaurant Brands announces first quarter sales results

Restaurant Brands' total sales across the company's three brands for the first quarter (12 weeks ended 23rd May 2011) were $72.5 million, a decrease of 4.4% or $3.3 million on the equivalent period last year.  The sales decrease is primarily attributed to store closures in Christchurch following the earthquake ($2.5 million in lost sales) and the disposal of Pizza Hut stores.  Same store sales were down 2.3%.

KFC total sales grew 2.8% in the quarter (rolling over an 8.5% increase in the prior year).  Starbucks sales decreased 11.3% and Pizza Hut sales decreased by 27.7%.

KFC same store sales saw a 0.3% increase (rolling over a 10.7% increase in the prior year).  Starbucks had an increase of 4.3% and Pizza Hut saw a decline of 15.7%.