Restaurant Brands’ annual profit soars 19 percent

  • News
  • April 16, 2015
  • Elly Strang
Restaurant Brands’ annual profit soars 19 percent

Profits rose to $23.8 million in the year ended March 2, the Auckland-based company says. Profits were $20 million a year earlier.

Sales increased to $372.6 million (13 percent) while cost of sales rose to $302.2 million (11 percent).

Restaurant Brands credited KFC as one of the main contributors to the company’s growth.

KFC’s sales hit a new high of $265 million (9.7 percent increase) despite being one of the older players in the competitive fast food chain market.

The company recently gave its stores a facelift, rolled out a new range of burgers and increased its marketing presence.

Pizza Hut and Starbucks Coffee also experienced growth in their same store sales, up 6.3 and 5.1 percent.

Restaurant Brands has undergone significant restructuring recently.

It sold regional, quieter Pizza Hut stores to independent frachisees, shut down some of its Starbucks Coffee branches and built three and acquired seven Forsgren NZ owned Carl’s Jr. stores. 

These changes helped lift Carl’s Jr.’s earnings from almost nothing to $200,000.

Sales for the burger chain rose 40 percent to $20.1 million.

Restaurant Brands expects the burger chain’s earnings to increase as it now has sufficient scale and presence in the market.

Increasing its number of shops helps the chain better compete with its burger chain rivals, McDonald’s and Burger King. It now has 18 stores in New Zealand.

The company says building profitability and momentum with Carl’s Jr will be a major focus for the company over the next year.

Despite the company coming to an agreement with Unite Union to guarantee 80 percent of all its workers’ average hours from July this year, it is feeling confident about profits this year.

“Subject to any significant changes in the economic and competitive environment or unusual costs, with increased contributions from both KFC and Carl’s Jr, directors expect that the company will deliver an improved profit result in the new financial year,” the company says.

The company said to The Register that it is not expecting any significant increase in labour costs as a result of providing guaranteed hours to employees.

"There will be some escalation in labour costs, however, as a result of wage increases as part of our new Collective Employment Agreement with Unite Union," it says.

​ ​

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