Restaurant Brands set for aggressive expansion
KFC enjoyed a same-store sales increase of 5.2 per cent to $78.4 million during the first quarter of FY19, up from $74.6 million during the same period of FY18.
These results drove total sales for parent company Restaurant Brands up 1.6 per cent to $182.8 million, due to increased same-store-sales in all of its markets; New Zealand, Australia, and Hawaii.
However, Pizza Hut’s local operations saw a significant drop in sales over the same period. While same-store sales fell 4.6 per cent, the pizza chain’s total sales fell 16.1 per cent to $7.7 million, compared to the $9.1 million from the prior corresponding period.
KFC Australia enjoyed a 6 per cent increase in same-store sales in its first quarter of FY19 and a 1.9 per cent increase in total sales, despite the temporary closure of several stores for refurbishments.
KFC saw A$39.7 million in same-store sales and A$40.7 million in total sales in the quarter.
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.”
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.
Author: Dean Blake. This article first appeared in Inside Retail, a sibling website to Inside Franchise Business.