News

NPC International posts 162 percent income gains

November 8, 2010

Pizza Hut's largest franchisee posted some impressive year-over-year gains in its Q3 2010 earnings report – among them, best-in-segment store comps, and a net income increase of 162 percent.

NPC's president and CEO Jim Schwartz attributed sales gains to the new tiered, flat price promotion ($8, $10 and $12) announced during the quarter. “We maintained the exceptional sales momentum that we developed in the first half of this year, posting comparable store sales growth of 10.9 percent during our third quarter while migrating away from the $10 Any Pizza promotion,” he said.

Same-store sales increased 10.9 percent for the 1,000-plus unit franchisee, rolling over a decrease of -12.9 percent last year.

Net income of $3.5 million was 162 percent greater than last year’s Q3 $1.3 million. Year to date, net income was up 69 percent, from $10.7 million in Q3 2009 to $18.1 million for the most recent quarter of reportage.

Total sales were $237.2 million for the 13 weeks ended September 28, compared with $214 million for the corresponding time period in 2009. Year-to-date, total sales were $748 million for Q3 2010, a 12 percent increase from $670 million for the same period in 2009.

“During the quarter we significantly lowered our menu prices on all of our pizzas with the introduction of our new simplified pricing strategy and our consumers have enthusiastically welcomed the change,” Schwartz said. “This lower and simplified menu pricing strategy leverages off of the key tenets of the $10 Any Pizza promotion – tremendous value and a simple pricing message. In addition, during the third quarter we once again brought hallmark Pizza Hut innovation to the category with the introduction of the Big Italy Pizza, which was well received and exceeded our product mix expectations.”