Restaurant Brands Ltd, a food franchise operator, has upgraded its profit outlook, owing to the rise in sales of some popular brands including KFC brand and Pizza Hut.

The company expects to achieve a profit target of $8.7 million in the 28 weeks to September 14, excluding non-trading items.

Pizza Hut performance has not been encouraging over the past couple of years, thereby affecting company's performance in the long run. However, closure of non-performing stores and efficient management helped it to increase sales in the competitive environment.

The firm added: "The improved profitability largely arises from sustained strong sales growth in the KFC brand and a continued turn around in the financial performance of the Pizza Hut business."

Annual profit forecasts are revised to $15m from $11.7m last year. Second quarter sales figures are likely to come on September 23, by the company which also owns the New Zealand arm of Starbucks.

KFC, that accounted 68 per cent of company's sales last year, has been referred to as planetary brand of the firm given to its popularity and acceptance among masses.