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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%.

Restaurant Brands announces full year results for the year ended 28 February 2011

Key points:

• Group Net Profit after Tax (excluding non-trading items) of $25.1 million, up 26% on prior year.
• Total Group Revenue of $324.9 million, up 2.1%; same store sales up 2.4%.
• KFC store transformation and new store openings continue to drive group sales and profit growth.
• Pizza Hut sell-down programme underway.
• Strong cash flows result in a reduction in group debt to a record low of $12.2 million.
• Final fully imputed dividend of 10.0 cents per share, making a full year dividend of 17.0 cents, up 4.5 cents or 36% on prior year.
• Outlook constrained by tough trading conditions with a slowing of the KFC store transformation programme.
• Annual Shareholders Meeting to be held in Christchurch.

- 7 April 2011