New Zealand fast-food operator Restaurant Brands reported flat annual results, with net profit of $24.1 million in the year to February 29, a one per cent increase from the previous year’s $23.8 million.
The company’s net profit after tax, excluding non-trading items, was $24.2 million, up 7.5 per cent on the $22.5 million result in FY 2015.
Restaurant Brands, which operates the KFC, Starbucks, Pizza Hut and Carl’s Junior franchises in New Zealand, reported a total group store sales of NZ$387.6 million, up 7.8 per cent from the prior year with continued strong growth from KFC and the impact of acquisitions in the Carl’s Jr. brand.
Pizza Hut showed a small decline in sales because of the sale of company stores. Same store sales for the group were up 5.3 per cent (up 5.7 per cent in FY15).
The company reported a group revenue of $404.1 million for the year with the inclusion of sales of ingredients and packaging materials to independent franchisees. This was up 26.4 per cent from the previous period with higher volumes and an increased number of independent franchisees.
Store EBITDA before G&A costs was up by $5.4 million to $66.9 million, with KFC contributing $6.4 million of the improved earnings.
Year end store numbers at 173 were eight down on February 2015 with continuing sales of regional Pizza Hut stores to independent franchisees and the closure of one Pizza Hut and one Starbucks Coffee store at lease end.
Company CEO, Russel Creedy, said the company’s new Australian acquisition is expected to contribute to increased profitability from late in the first quarter, but there will be some further one off transaction costs in settling the transaction.
The company declared a final dividend of 12.5 cents per share.
Looking ahead, Restaurant Brands forecast a net profit of NZ$28 million to NZ$30 million in the current financial year.
“Absent any significant changes in the economic and competitive environment or unusual costs, with both an improved domestic performance and the contribution from the QSR business in Australia from the end of the first quarter, directors expect that the company will deliver a profit result in the new financial year of $28 to $30 million,” Creedy said.
Access exclusive analysis, locked news and reports with Inside Retail Weekly. Subscribe today and get our premium print publication delivered to your door every week.
