Kansas-based NPC International Inc., the largest Pizza Hut franchisee in the country, reported results for its first fiscal quarter ended March 27. Highlights include:
- Comparable store sales increased 5.1 percent rolling over a decrease of 4.7 percent last year.
- Adjusted EBITDA of $38.9 million was $6.3 million or 19 percent greater than last year, primarily on the strength of Adjusted EBITDA Margin expansion of 150 basis points over last year.
- Net income of $9 million was $0.5 million below last year.
"We are extremely pleased to report exceptional results for our first quarter of 2012. This quarter's results were marked by continued strong sales momentum, significant margin expansion due to our margin improvement initiatives and sales leverage and excellent controls by our operators, resulting in record quarterly Adjusted EBITDA," said NPC's president and CEO Jim Schwartz.
The brand cited value and bundling innovation during the quarter for its sales momentum, including the $10 Any Pizza promotion and the $10 Dinner Box. These promotions extended the momentum from the fourth quarter, resulting in strong comparable store sales growth of 5.1 percent.
The company's recent acquisition in Jacksonville, Fla., is also off to a strong start, as the company works to fill out the pipeline of new units to achieve its planned development target for the year.
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