KFC High-gears into Drive-Thru's

KFC is rewarding shareholders in 2010. The shares will be subdivided into 50-sen shares and a one-to-one bonus issue is in the works too.

On top of that it has added a new product line-hot and spicy shrimp.Will this become a hot seller? We await the response from the public.

Meanwhile,KFC has announced it will open at least 20 new outlets in 2011 at a capital outlay of RM45 million.

Of the 20 outlets nationwide, 12 will be under the drive-thru concept.Currently, KFC Holdings has 495 outlets nationwide with 32 drive-thru' outlets.

At least RM3mil is required  for one drive thru outlet. KFC plans to have a minimum of one drive-thru outlet in each state.

For this year, the company has opened 25 outlets to date, out of the planned 40 with a total investment of RM40mil.KFC Holdings also expects a double-digit sales growth for its financial year ending Dec 31, 2010.

In 2009, KFCH recorded a growth of 10.9% with sales of RM2.3bil. Despite uncertainties in the economy last year, KFC  recorded a positive growth and is confident of a  sustainable growth momentum.

KFC Holdings is currently also expanding the sausage capacity at its Port Klang plant to 1,000 tonnes from 500 tonnes currently.

"There is a lot of demand for sausages now and the facility expansion which is ongoing is costing about RM20mil. We hope for it to be completed by early next year," said a KFC spokesman.

On the new Hot & Spicy Shrimp menu, KFC expects to drive its system-wide sales by about 10% during the promotion period from Aug 3 to Sept 30, 2010.

KFC will be spending  over RM2mil on advertising and promotion, inclusive of television and radio commercials, print advertisements, social media such as Facebook.

KFC  hopes that the new menu would be a added choice for customers looking for new options particularly to break fast during the up-coming Ramadan festival.

KFC Holdings recorded revenue of RM600mil for its first quarter ended March 31, 2010, up 14% from the corresponding period last year.

So,is  KFC a good investment when its price goes down to about RM3.00 per share after the split and bonus exercise?

Your guess is as good as mine.