Pizza Hut franchisee accelerates smaller model growth

March 11, 2013

NPC International Inc., the world's largest Pizza Hut franchisee with 1,227 units, has reported a profit of $15 million for 2012, $10.3 million higher than its 2011 results.

The company earned a profit of $0.6 million for Q4, compared to a loss of $13.4 million the year prior.

Comparable store sales increased 1.9 percent for 2012, rolling over an increase of 0.4 percent in 2011. Jim Schwartz, CEO and president of NPC, attributed the results — which also included a 22-percent jump in annual adjusted EBITDA — to continued margin expansion.

"Restaurant level margins continued to benefit from margin management initiatives, lower commodity costs and lower labor costs," he said.

The company's Delco Lite growth initiative resulted in 18 openings of the smaller delivery/carryout model during Q4 and 45 units for fiscal 2012.

"The Delco Lite openings continue to deliver results that are in line with our return expectations and as a result, we plan to open an additional 40 Delco Lites in fiscal 2013," Schwartz said.

Read more about operations management.

Topics: Franchising & Growth , Pizza Hut , Restaurant Design / Layout

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