Looking Through the Priszm


TORONTO — Priszm Income Fund, holders of an approximately 60 per cent interest in Priszm Limited Partnership, which owns and operates more than 400 quick-service restaurants in seven provinces across Canada under the KFC, Taco Bell and Pizza Hut banners, recently reported financial results for the first quarter of 2010. And, while some may have already started applauding the recession’s end, Priszm execs are not as jubilant.  

“We are not happy with our recent sales performance; we are working closely with the franchisor, Yum! Canada, to improve performance for the balance of the year,” said John Bitove, executive chairman of Priszm Income Fund. “While the company has maintained strong cost controls, the reality is lower sales results in less profit, and we will turn this around because KFC is a power brand in Canada.”

According to the report, restaurant sales of $83.5 million for the first quarter of 2010 were down $7.5 million from 2009. This decrease was a direct result of same-store-sale declines and the operation of nine fewer restaurants than at the end of the corresponding period of 2009. As a result, Priszm says the franchisor, Yum! Canada, is in the process of developing a new KFC value strategy and examining opportunities to introduce new innovative menu items that have had success in other international markets.

To read the full report, click here.


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