Fast food outlet operator Priszm Income Fund (QSR_u.TO: Quote) said on Thursday it will temporarily slash cash distributions, sell up to a quarter of its restaurants and close another 25 as tries to combat falling sales and climbing costs.
Priszm, which reported lower third-quarter sales and profit on Thursday, expects those changes to save about C$4 million in 2008, while adding net proceeds of C$20 million to C$30 million from the sale of up to 120 restaurants over the next two years.Toronto-based Priszm owns and operates 484 fast-food restaurants under the KFC Kentucky Fried Chicken, Taco Bell, Pizza Hut and Long John Silver banners, in seven provinces across Canada.
The company said it has developed a four-part plan to improve profits, boost sales, cut costs and generate surplus cash to plow back into operations.
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