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Largest Pizza Hut franchisee posts large Q2 2010 gains
August 5, 2010
NPC, the largest Pizza Hut franchisee in the United States, has reported a significant improvement in profit over 2009 for its second fiscal quarter ended June 29, 2010.
“Our operators did an excellent job of controlling the business this quarter while confronting significant traffic increases and higher food costs associated with the lower selling price that accompanies the $10 Any Pizza promotion,” said NPC’s president and CEO Jim Schwartz. “The results of these efforts are reflected in lower labor costs versus last year, despite the July 2009 minimum wage increase, and excellent cost controls in the other restaurant operating expense category.”
Comparable store sales increased 10.4 percent, over a decrease of -12.6 perecent last year.
Net income of $5.1 million was 53 percent greater than last year’s net income of $3.4 million. Year to date, net income came to $14.6 million, a 57 percent increase over last year’s corresponding number of 9.3 million.
Total sales for the period ended June 29 were $246.8 million, up 10 percent from Q2 2009’s number of $223.8 million. Year to date, the company has reached $511.3 in sales, up 12 percent from $456.2.
The pizza segment has led the restaurant industry in terms of category share of traffic growth as the consumer has found great value in the pizza. “One of our on-going challenges will be balancing our value proposition with our cost structure, in a way that drives value and enhances profitability,” Schwartz said. “However, we are pleased with the results to date and we look forward to sharing our progress with you as fiscal 2010 plays out.”
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