Quick service restaurant operator Priszm Canadian Income Fund has announced higher sales for the second quarter ended 12 June 2005, but net earnings fell.
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Priszm, whose brands include KFC, Pizza Hut, Taco Bell and Long John Silver’s, reported revenue of C$114m (US93.7m), compared with $109m in the same period last year.
Net earnings were $4.3m, compared with $4.9m in the year earlier period.
“Our successful Picnic Now! campaign helped drive significant sales gains at our KFC outlets in Canada and provided the perfect introduction for Colonel’s Ribs, the first non-chicken entrée at KFC,” said John Bitove, chairman and chief executive officer. “In fact, same store sales rose 14.7% in the week following the launch of Picnic Now! and KFC’s revolutionary new menu items.”
Priszm also continued to build out its multi-brand strategy, which combines two or more of Priszm’s market-leading restaurant concepts in one location, with the newly opened Kelowna, British Columbia KFC-Taco Bell outlet. Currently, Priszm has 63 multi-branded outlets, with nine more under development. Several multi-brands are slated to open in the third quarter and 25 are scheduled for completion in 2005. The concept continues to be a hit with customers: multi-branded outlets experienced same store sales growth of 4.9% in the second quarter 2005 over the corresponding quarter in 2004.
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By GlobalData“We are extremely encouraged by the performance of our multi-branded restaurants, a concept that we have helped pioneer in Canada with exceptional results,” said Bitove. “Multi-branded outlets have provided all the benefits we anticipated – more revenue, better profitability, more customer choice and cost synergies stemming from shared real estate, reduced construction costs and higher sales volumes. Priszm continues to notch average revenue gains of 25% to 40% after multi-branding of a location.”
