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Restaurant Brands takes over NSW KFC stores

KFCRestaurant Brands New Zealand Limited (“RBD”) has today announced conditional agreement to purchase the largest KFC franchise in NSW for $A82.4 million.

The deal will see RBD acquire 100 per cent of shares in QSR Pty Limited (“QSR”), an Australian company which owns and operates 42 KFC stores in New South Wales.

“The acquisition is an opportunity for Restaurant Brands to gain a scale position in the New South Wales quick service restaurant market, leveraging our strong relationship with Yum! Restaurants International and successful track record owning and operating KFC stores,” said RBD chairman, Ted van Arkel.

Subject to a number of conditions, including approval from master franchisor, Yum! Restaurants International, RBD expects to settle the transaction by the end of April.

QSR’s KFC stores are located in Sydney and New South Wales regional locations with QSR KFC franchisee for the past 17 years.

RBD said the stores currently generate annual sales of $A100 million and store EBITDA in excess of $A15 million.

“We see the acquisition as an opportunity to expand RBD’s geographical footprint of KFC stores in a market with considerable further expansion opportunities,” said RBD chief executive, Russel Creedy.

RBD operates the KFC, Pizza Hut, Starbucks and Carl’s Jr franchises in New Zealand, of which KFC is its biggest earner, generating almost three-quarters of sales.

RBD expect to generate annual revenue of $NZ500 million ($A457.62m) and EBITDA of $NZ70m once the deal is completed.

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