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Restaurant Brands first-half profit trebles

Quick service group Restaurant Brands tripled profit in its first half, with group NPAT hitting $33 million compared to $10.7 million in the same period last financial year – a 208 per cent growth.

Group sales, on the other hand, rose 41 per cent to $516,7 million thanks to strong same-store sales across New Zealand, Australia and Hawaii, as well as the addition of its new Californian arm.

Restaurant Brands, which runs KFC in NSW and Taco Bell in Australia, saw its Australian operations grow 24.1 per cent during the half to NZ$117 million in sales and $5.3 million in operating profit, up 106 per cent.

However, the business recognised that its Australian operations continue to suffer under lockdown, with state-wide restrictions regularly impacting dine-in sales across its network of stores – though an initial investment into home delivery and mobile ordering offsetting this somewhat.

“With continued investment in existing stores in the portfolio and a particular emphasis on driving workplace safety, operational excellence and digital innovation that enhances customer experience, the business has succeeded in mitigating some of the impact of the current Covid-19 restrictions,” Restaurant Brands said in a note to investors.

In New Zealand, the firm’s home market, sales grew 37 per cent to NZ$239 million while EBITDA jumped 28.3 per cent to NZ$43.1 million. Operating profit was NZ$28.7 million, up 68.5 per cent.

“The result was led by another strong performance from KFC combined with Carl’s Jr., where sales continue to growth through both the delivery and store channels,” the business said.

“At this stage, Taco Bell contributes only a small proportion of the New Zealand business’ sales.”

In Hawaii, sales grew 5.7 per cent to US$72.7 million, while its new operations in California brought in initial sales of US$55.2 million.

Looking forward, Restaurant Brands is looking to continue to grow store numbers as it banks on the Covid-19 crisis being close to over. New stores are planned to roll out across all markets, with new KFC and Taco Bell stores scheduled for Australia and New Zealand in the second half.

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