NPC attributes strong Q1 comps to $10 promo
May 9, 2010
NPC International, the largest franchisee of Pizza Hut in the United States, has reported robust earnings for its first quarter, ended March 30, 2010.
NPC's president and CEO Jim Schwartz, who last year called for Pizza Hut executives to change the way the brand communicates with its customers, attributed better numbers to the brand's new $10 Any Pizza Promotion and its "simple marketing message that addresses value head-on."
"The promotion has resonated strongly with the consumer due in large part to the clarity of the message and the great value that it delivers to the consumer on their favorite abundantly topped Pizza Hut pizzas," Schwartz said in a release. "In addition, we had notable success this quarter combining our menu variety and innovation with strong value in the form of our pasta and wing early-week specials."
Schwartz also praised his system's operators, who were able to keep labor costs down despite last summer's minimum wage increase, as well as other operating expenses.
Comparable store sales from continuing operations increased 10.2 percent, rolling over a decrease of -5 percent for Q1 last year.
Income for Q1 2010 was $9.5 million, up 57 percent from last year's figure of roughly $6 million.
Revenue numbers were not reported.
The company's First Quarter Earnings conference call will be held May 11 at 9 a.m. Central Daylight Time. You can access this call by dialing (866) 788-0540. The international number is (857) 350-1678. The access code for the call is 11452538.
