Tough To Make Dough With Pizza

Stuff.co.nz:

Pizza Hut is feeling the heat and taking a hit from not only the Christchurch earthquake but also from stiff competition and store closures.

It was easily the worst-performing of the three Restaurant Brands chains, which include KFC and Starbucks.

The quake has hurt fast food revenue, with Restaurant Brands reporting a $2.5 million sales drop in that sector in the 12 weeks to May 23.

Sales across the company’s brands for the first quarter were $72.5m, 4.4 per cent, or $3.3m, lower than in the same period last year. The fall is due mainly to store closures in Christchurch and the disposal of Pizza Hut stores nationally. Same-store sales were down 2.3 per cent.

Hardest hit among the brands was Pizza Hut, whose sales fell 27.7 per cent, or $4.1m.

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