Restaurant Brands’ KFC booms, Pizza Hut slides
Sales at Restaurant Brands’ KFC outlets have bolstered the group’s results, despite a stop-start quarter.
In its Q1 report, KFC Australia enjoyed a 6 per cent increase in same-store sales, in addition to a 1.9 per cent increase in total sales. The result came after many of Restaurant Brands’ KFC stores were temporarily closed for refurbishments.
Restaurant Brands’ KFC business saw $37.3m (NZ$39.7m) in same-store sales and $40.7 million in total sales for the quarter.
Total sales for parent company Restaurant Brands were up 1.6 per cent to $182.8 million. This was due to increased same-store-sales in all of its markets; Australia, New Zealand, and Hawaii.
Restaurant Brands New Zealand
In New Zealand, KFC saw a same-store sales increase of 5.2 per cent to $73.8m (NZ$78.4m), up from $70.2m (NZ$74.6m) during Q1 of FY18. Restaurant Brand’s Pizza Hut operations in New Zealand, however, saw a significant drop in sales over the period.
While same-store sales fell 4.6 per cent, the pizza chain’s total sales fell 16.1 per cent to $7.2m (NZ$7.7m), compared to the $8.57m (NZ$9.1m) seen during the same period of FY18.
Restaurant Brands’ future
Looking forward, Restaurant Brands’ management notes that it is no secret they intend to turn the operation into a billion-dollar company, in both market capitalisation and in total revenue.
“As to our total revenue, in just over two years we’re well on the way having doubled in size through international acquisitions,” the group wrote in a statement to shareholders.
“Now that consolidating new operations and transitioning the company to a new ownership structure are behind us, we are set to resume our aggressive expansion strategy with gusto.”
Restaurant Brands’ KFC strategy
Over the next five years, the group expects to open 30 new KFC stores across Australia and New Zealand, acquire independent KFC franchises in Australia, launch and roll out Taco Bell in New Zealand and Australia and establish a larger presence in the United States.
The results come just days after Inside Franchise Business reported the group had secured further plans to expand its Australian Taco Bell network.