Restaurant Brands to maintain profit level
Fri, 29 Jun 2012 1:13p.m.
Restaurant Brands, the fast food company, expects to at least match last year's profit in the year ending February 2013, chairman Ted van Arkel told the annual shareholders' meeting.
"Even though the 2012 underlying profit was down on 2011's stellar result, directors consider the 2012 profit performance to have been satisfactory, given the continuing tough economic environment," Mr van Arkel said.
"Our expectations for 2013 are for a result of at least the same level."
Restaurant Brands reported a 29.5 percent decline in net profit to $16.9 million in the year ended February 29 with underlying profit down 27 percent.
Mr Van Arkel said he doesn't expect any let-up in the challenging economic conditions or competitive marketplace.
"Directors believe that current levels of profitability will be maintained through a continued focus on efficiency and cost reductions, together with new marketing initiatives," he said.
Chief executive Russel Creedy said KFC, which contributed 77 percent of annual sales and 90 per cent of operating profits, had five more stores refurbished during the year, bringing the total to two-thirds of its 88 stores.
A further eight stores a scheduled for upgrades and the company plans to open two more KFC stories this year.
"With virtually every store that has been revamped we have seen a return on investment well in excess of the cost of capital, demonstrating the effectiveness of the upgrade program," he said.
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