News

Pizza Hut improves in N.Z., struggles in Australia

September 19, 2005

WELLINGTON, N.Z. — Comparable-store sales at Pizza Hut units in New Zealand rose for the second quarter of 2005, but comps declined at its Australian stores.

According to a news release, total sales at Pizza Hut New Zealand rose 9.8 percent to NZ $29.2 million (U.S. $20.5 million), while comps increased 2.6 percent. Year-to-date sales totaled NZ $49.9 million (U.S. $35 million), up 7.5 percent on the comparable period. Comps for the first six months, however, slipped 0.1 percent.

In Australia, total sales for the quarter were AUS $8.1 million (U.S. $6.2 million), down 3.4 percent from the comparable period. Comps for the quarter declined 3.1 percent. Year-to-date sales were AUS $14.4 million (U.S. $11.6 million), compared with AUS $14.6 million (U.S. $11.2 million) in the 2004 period. Comps declined 0.9 percent in the first six months of the year.

Franchise group Restaurant Brands said the rollout of a new line of gourmet pizzas helped sales in New Zealand, but strong competition in the Australian city of Victoria furthered Pizza Hut's ongoing declines there. Hoping to cut its losses in the market, the company said it plans to close some units and sell others back to franchisees.

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