Fast food operator, Restaurant Brands New Zealand, has posted a 7.8 per cent increase in its annual profit boosted by the record sales generated from its local KFC business and contribution from the KFC business in Australia.
In the 52 weeks ending February 27, the group reported a net profit after tax of $26.0 million, up $1.9 million from the previous corresponding period. Net profit after tax (excluding non-trading items) was $30.6 million, up 26.3 per cent from the previous year.
Total group store sales were $497.2 million, up $109.6 million (+28.3 per cent) from the previous year, bolstered by the recently acquired Australian KFC business, assisted by continued strong growth from KFC New Zealand.
Underlying earnings saw a 26 per cent increase to $30.6 million, within the company’s guidance of between $30 million and $32 million, and Restaurant Brands is anticipating it will rise to around $40 million from its recent acquisitions.
Its New Zealand operations continued to perform well, delivering total sales of $400 million and a store EBITDA of $71.2 million of the $86.2 million reported for the group.
With the settlement of the KFC Australian purchase in April 2016, Australian operations contributed sales of $97.2 million and store EBITDA of $15.0 million for the 10 month period.
On October 26, 2016 the company entered into an agreement to acquire Pacific Island Restaurants Inc (“PIR”), the sole Pizza Hut and Taco Bell operator in Hawaii and Guam with 82 stores. The acquisition is expected to deliver an additional $180 million in annual revenues.
The board declared a final fully imputed dividend of 13.5 cents per share will be paid on June 23, making a full year dividend of 23.0 cents (up 9.5 per cent on the previous year).
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