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Restaurant Brands Completes the Acquisition of KFC Business in Australia

29 April 2016

On 3 March 2016, Restaurant Brands New Zealand Limited (NZX: RBD) announced that it had entered into a conditional agreement to acquire 100% of the shares of QSR Pty Ltd, the largest KFC franchisee in New South Wales, Australia.

Restaurant Brands is pleased to advise that it has today successfully completed the acquisition of QSR and has issued 5,000,000 new ordinary shares to Eyeon QSR Pty Ltd in part payment of the acquisition price.  The shares issued to Eyeon are subject to a 12 month escrow period, during which they cannot be sold (subject to certain limited exceptions).

Restaurant Brands also advises that Mr Stephen Copulos has accepted the invitation to join the Board of Restaurant Brands and the Board has today appointed him as a Driector of the company.  As required by thge Listing Rules, Mr Copulos will stand for election by shareholders at Restaurant Brands' next annual meeting.

Restaurant Brands announces full year result for year ended 29 February 2016

14 April 2016

Group Net Profit after Tax was $24.1 million (24.6 cents per share), up $0.2 million (+1.0%), on prior year. Net Profit after Tax (excluding non-trading items) was $24.2 million (24.7 cents per share), up 7.5% on prior year.

On a like-for-like basis, adjusting for the impact of the 52 vs 53 week comparison and the LTI scheme, Net Profit After Tax (excluding non-trading items) was up $2.8 million or 12.6%.

Total Group Store Sales were $387.6 million, up $28.0 million (+7.8%) on prior year with continued strong growth from KFC and the impact of acquisitions in the Carl's Jr. brand.

KFC continued to dominate performance with sales continuing to grow to a new high of $282.5 million.

Total store EBITDA of $66.9 million was up $5.4 million (+8.7%) on the prior year, again driven by a very strong performance by KFC.

Operating cash flows were $44.3 million, up $7.8 million and debt was reduced to $12.7 million.

After balance date the company entered into an agreement to acquire QSR Pty Limited, the largest KFC franchisee in New South Wales, Australia. The acquisition will result in an additional $A100 million in annual revenues and $A15 million in store EBITDA.

A final fully imputed dividend of 12.5 cents per share will be paid on 24 June, making a full year dividend of 21.0 cents (up 10.5 % on the previous year).

Restaurant Brands' Full Year Sales up 9.9%

10 March 2016

Note: Restaurant Brands' results for the 2014/15 financial year (prior year) were on a 53 week basis compared with 52 weeks for the current year. Because the company normally reports on a 52 week (364 day) year, a "leap year" is occasionally required, hence an extra week in the fourth quarter of the prior year. Comparative % and dollar changes in sales are restated to a 52 week equivalent. Unadjusted and adjusted comparisons are contained in the appended tables.

Restaurant Brands' total sales for the financial year (52 weeks ended 29 Febraury 2016) were $387.6 million, an increase of 9.9% or $34.9 million on the equivalent 52 week period in the prior year. On an unadjusted basis, sales were up 7.8%.

Of the total equivalent increase, KFC contributed $22.4 million, driven by strong same store sales growth. Carl's Jr. contributed a further $13.9 million from an increase in store numbers.

Sames store sales for the financial year were up 5.3%, led by KFC up 6.3% and Starbucks Coffee up 6.9%. Pizza Hut saw a sales increase of 2.6% and Carl's Jr. was down 5.1%.

Restaurant Brands Acquires KFC Business in Australia

4 March 2016

Restaurant Brands NZ Limited ("RBD") is to acquire 100% of the shares in QSR Pty Limited, the largest KFC franchisee in New South Wales, Australia, for $A82.4 million.

QSR Pty Limited is a well-established and profitable operator with 42 stores, generating sales in excess of $A100 million and store EBITDA of over $A15 million per annum.

The transaction is expected to be EPS accretive for RBD in FY17.

The acquisition will be partially settled with Restaurant Brands New Zealand Limited scrip of 5 million ordinary shares. The balance wil be funded through debt.

Settlement is expected to be completed by the end of April 2016, following which the principal of the vendor, Mr Stephen Copulos will be invited to join the Restaurant Brands New Zealand Limited board.

Restaurant Brands' Third Quarter Sales up 9.4%

17 December 2015

Restaurant Brands' total sales for the third quarter of the financial year (12 weeks ended 7 December 2015) were $88.7 million, an increase of 9.4% or $7.6 million on the equivalent period last year.

Of the total increase, KFC contributed $3.8 million, driven by sold same store sales growth.  Carl's Jr. contributed a further $4.0 million, mostly from higher store numbers following the acquisition of seven Auckland-based Carl's Jr. stores in December 2014.

Same store sales for the company were up 3.7%, led by KFC which grew 3.7%.  Starbucks Coffee sales were up 6.6% and Pizza Hut up 4.2%.  Carl's Jr. was slightly down by 2.5%.

Restaurant Brands announces half year profit results for the half year ended 14 September

29 October 2015

Net profit after Tax for the 28 weeks ended 14 September 2015 (IH 2016) was $13.4 million (13.7 cents per share), up $1.9 million or 16.7% on the prior period (1H 2015).  Net Profit (excluding non-trading items) was $13.1 million, up $1.6 million or 13.8% on the prior period.

Total Group Sales were $210.0 million, up 13.1% on the previous half year, driven by a strong performance from KFC and increased volumes from the new Carl's Jr. brand.  Same store sales were up 6.7% for the half year (+4.9% 1H 2015) with solid same store sales growth from KFC and Starbucks Coffee.

Combined brand EBITDA was up $4.4 million ot $36.0 million.

Directors have declared an interim dividend of 8.5 cents per ordinary share, up 1.0 cent on last year.  The dividend is fully imputed and payable on 27 November 2015.

Restaurant Brands' Second Quarter Sales up 12.0%

23 September 2015

Restaurant Brands' total sales during the second quarter of the financial year (16 weeks ended 14 September 2015) were $121.0 million, and increase of 12.0% or $13.0 million on the equivalent period last year.

Of the total increase, KFC contributed $8.6 million, driven by strong same store sales.  Carl's Jr. contributed a further $5.2 million, mostly from higher store numbers following the acquisition of seven Auckland-based Carl's Jr. stores in December 2014.

Same store sales for the company were up 6.0%, led by KFC which grew 8.0% and Starbucks Coffee up 6.7%.  Pizza Hut was slightly down at 0.4% with Carl's Jr. down 7.9% rolling opening of new stores.

Restaurant Brands' First Quarter Sales up 14.7%

4 June 2015

Restaurant Brands' total sales during the first quarter of the financial year (12 weeks ended 25 May 2015) were $89.1 million, an increase of 14.7% or $11.4 million on the equivalent period last year.

Of the total increase, KFC contributed $7.5 million, driven by strong same store sales.  Carl's Jr. contributed a further $4.4 million, mostly from higher store numbers following the acquisition of seven Auckland-based Carl's Jr. stores.

Same store sales for the company were up 7.6%, led by KFC which grew 9.8% and Starbucks Coffee up 8.9%.  Pizza Hut was slightly down at 0.5% with Carl's Jr. down 5.2%.

Restaurant Brands announces full year results for year ended 2 March 2015

16 April 2015

Group Net Profit after Tax was $23.8 million (24.3 cents per share), up $3.9 million (+19.4%) on prior year. Net Profit after Tax (excluding non-trading items) was $22.5 million (23.0 cents per share), also up 19.4% on prior year.

Total Group Store Sales were $359.5 million, up $30.3 million (+9.2%) on prior year with continued strong growth from KFC and store builds and acquisitions in the Carl’s Jr. brand.

KFC sales continued to grow to a new high of $265 million despite competitive market conditions.

Pizza Hut and Starbucks Coffee delivered solid same store sales growth, up 6.3% and 5.1% respectively.

The roll out of the new Carl’s Jr. brand continued with the construction of three new stores and the acquisition in December 2014 of seven Carl’s Jr. stores owned by Forsgren NZ Limited, bringing total store numbers to 18.

Total store EBITDA of $61.5 million was up $8.0 million (+15.0%) on the prior year mainly driven by the strong performance by KFC.

Operating cash flows were $36.6 million, up $4.4 million on prior year, driven by higher earnings. Investing cash flows were also substantially up on prior year, reflecting strong levels of store reinvestment and the acquisition of seven Carl’s Jr. stores.

A final fully imputed dividend of 11.5 cents per share will be paid on 26 June, making a full year dividend of 19.0 cents (up 15.2% on the previous year).

Restaurant Brands' Fourth Quarter Sales up 10.6%

11 March 2015

Note: Restaurant Brands’ results for the 2014/15 financial year are on a 53 week basis vs 52 weeks for the previous year.  Because the company normally uses a 52 week (364 day) year, a “leap year” is occasionally required, hence an extra week in the fourth quarter.  All comparative % and dollar changes in sales are restated to a 52 week equivalent.  Unadjusted and adjusted comparisons are contained in the appended tables.
 
Restaurant Brands' total sales during the fourth quarter of the financial year (13 weeks ended 2 March 2015) were $92.8 million, an increase of 10.6% or $8.2 million on the equivalent 12 week quarter in the prior year.
                                                                                                        
Of the total equivalent increase, KFC contributed $5.3 million, driven by strong same store sales.  Carl’s Jr. contributed a further $3.3m mostly from the acquisition of seven Auckland-based Carl’s Jr. stores.
 
Same store sales for the company were up 5.7%, led by KFC which grew 7.5%, Starbucks Coffee was up 5.3% and Pizza Hut up 1.7%.  Carl’s Jr. was down 11.4% on a same store basis as the brand continued to roll over high store opening sales experienced in the prior year.

Restaurant Brands' Third Quarter Sales up 6.4%

12 December 2014

Restaurant Brands' total sales during the third quarter of the financial year (12 weeks ended 1 December 2014) were $81.1 million, an increase of 6.4% or $4.9 million on the equivalent period last year.

Of the total increase, KFC was the key contributor at $5.4 million, driven by strong same store sales.

Same store sales for the company were up 7.5%, led by KFC which grew 10.8%.  Starbucks Coffee was up 4.9% and Pizza Hut up 5.8%.  Carl's Jr. was down 28.9% as it rolled over very high new store opening sales in the eight stores open in the prior year.

Restaurant Brands acquires seven Carl's Jr. stores and enters into Master Licensing Agreement with Franchisor

13 November 2014

Restaurant Brands has signed a conditional agreement to acquire to seven Carl's Jr. stores in Auckland currently owned and operated by Forsgren NZ Ltd.

This will bring the total number of Carl's Jr. stores in New Zealand owned by Restaurant Brands NZ Limited to 16, resulting in the company being the sole operator in the New Zealand market.

The agreement is for a cash purchase of the seven stores, by way of an asset acquisition, for a total consideration of $10.5 million (plus a payment for stock). Restaurant Brands will offer employment to the existing Forsgren employees.

The acquisition is subject to a number of conditions (including approval of CKE Restaurants Holdings, Inc. (CKE), the Carl's Jr. franchisor, and assignment of leases). Settlement is expected to occur in mid-November.

Restaurant Brands sees the acquistion as a strategic opportunity to add critical mass to its Carl's Jr. chain and use volume to further leverage marketing and supply chain opportunities.

Restaurant Brands has also signed a Master Licensing Agreement with CKE which allows Restaurant Brands to sublicense Carl's Jr. store in New Zealand to third party franchisees.

The agreement, which is effective immediately, allows Restaurant Brands to more quickly increase market penetration. Licensing smaller franchisees to operate the Carl's Jr. brand in locations where they can operate the business effectively will allow more rapid expansion of the Carl's Jr. store network. It is envisaged the model will work in much the same way as the successful mixed ownership model Restaurant Brands has set up with its other brands.

Restaurant Brands will receive a share of royalties and fees in return for the development and ongoing supervison of sublicensed stores.

Restaurant Brands announces half year profit results for the half year ended 8 September 2014

23 October 2014

Net Profit after Tax for the 28 weeks ended 8 September 2014 (1H 2015) was $11.5 million (11.7 cents per share) up $1.8 million or 18.6% on the prior period (1H 2014). Net Profit excluding non-trading items was also $11.5 million, up $2.7 million or 30.2% on the prior period.

Total Group Sales were $185.7 million, up 5.8% on the previous half year, driven by a strong performance from KFC and increased contribution from the new Carl’s Jr. brand. Same store sales were up 4.9% for the half year (+2.9% 1H 2014) with solid same store sales growth from KFC, Pizza Hut and Starbucks Coffee.

Brand EBITDA was up $4.4 million to $31.6 million. The bulk of the increase came from KFC, but all four brands delivered an improved profit performance.

Directors have declared an interim dividend of 7.5 cents per ordinary share, up 1.0 cent on last year. The dividend is fully imputed and payable on 21 November 2014.

Restaurant Brands' Second Quarter Sales up 5.8%

19 September 2014

Restaurant Brands' total sales during the second quarter of the financial year (16 weeks ended 8 September 2014) were $108.0 million, an increase of 5.8% or $5.9 million on the equivalent period last year.

Of the total increase in sales KFC was the key contributor at $5.0 million with Carl's Jr. contributing a further $0.8 million.

Same store sales for the company were up 5.3% with strong growth in KFC which grew 7.4%. Starbucks Coffee was up 4.7% and Pizza Hut up 7.6%. Carl's Jr. was down 37.9% as it rolled over very high new store opening sales in the five stores open in the prior year.

KFC Gisborne Re-opens

11 September 2014
KFC Gisborne Re-opens

The opening of the new KFC Gisborne store on 9 September has proved extremely popular with locals, producing queues down the street to get into the drive thru and unprecedented sales in the region.

The rebuild of the store cost $1.8 million and took 4 months to complete, during which time customers went to extreme lengths to get their KFC fix. Some driving 21/2hours to the nearest KFC in Whakatane or Napier.

The new store has created 22 new jobs and includes a number of new features including digital menu panels, roll out of the new KFC uniform, booth and bar seating and improved lighting scheme, building a great working environment for our staff and delivering a superior experience to our customers.

KFC Pukekohe reopens after $850,000 investment

6 August 2014

The refurbishment of Pukekohe's KFC has produced a superb new store for locals to enjoy - the $850,000 transformation has also created 7 new jobs that have been filled by people from the local community.

The newly renovated KFC Pukekohe reopened its doors to the public at 9am on Tuesday 22 July. It is the 72nd store to be refurbished as part of a national transformation programme. Locals returning to the store, which was closed for 5 weeks during the re-development, will see a number of new features designed to enchance their dining experience.

KFC Pukekohe is a example of everything that is great about KFC - a local team dedicated to being a relevant, exciting organisation within their community.

Through the store transformation, we are investing in building a great working environment for our staff and delivering a superior experience to our customers.

Restaurant Brands' First Quarter Sales up 5.9%

28 May 2014

Restaurant Brands' total sales during the first quarter (12 weeks ended 19 May 2014) were $77.7 million, an increase of 5.9% or $4.3 million on the equivalent period last year, with all four brands recording positive sales growth.

Of the total increase in sales KFC was the key contributor at $2.8 million with Carl’s Jr. contributing a further $1.4 million.

Same store sales for the company were up 4.3% with strong growth in KFC which grew 5.0%. Starbucks Coffee was up 5.5% and Pizza Hut up 9.3%. Carl’s Jr was down 36.2% as it rolled over very high new store opening sales in the four stores open in the prior year.

Restaurant Brands’ Fourth Quarter Sales up 6.4%

5 March 2014

Restaurant Brands' total sales across the company’s four brands during the fourth quarter (12 weeks ended 24 February 2014) were $77.6 million, an increase of 6.4% or $4.7 million on the equivalent period last year.

The Carl’s Jr. brand of burger restaurants, launched in November 2012 was a key contributor to the sales increase at $1.9 million with KFC contributing $2.7 million.

Same store sales for the company were up 3.5% with strong growth in KFC which grew 4.1%. Starbucks Coffee was up 7.6% and Pizza Hut up 8.9%. Carl’s Jr was down 59.1% as it rolled over very high new store opening sales in the two stores opened last year.

Restaurant Brands announces third quarter sales results

11 December 2013

Restaurant Brands' total sales across the company’s four brands during the third quarter (12 weeks ended 2 December 2013) were $76.2 million, an increase of 5.4% or $3.9 million on the equivalent period last year.

The new Carl’s Jr. brand of burger restaurants, launched in November 2012 was the largest contributor to the sales increase at $3.9 million.

Starbucks Coffee sales increased 2.7%, with Pizza Hut down 0.4% and KFC total sales decreasing 0.1% in the quarter against the prior year.

Same store sales for the company were up 0.2% with strong growth in Starbucks Coffee up 7.7% and Pizza Hut up 12.7% with KFC showing a decrease of 2.7%.

Spoilt for Choice

3 December 2013

Auckland Airport Retail has welcomed two new restaurants to the area, Carl’s Jr. and KFC on the corner of George Bolt Memorial and John Goulter Drives.

The $4.5 million investment by parent company Restaurant Brands signals their confidence in the growth potential of the Auckland Airport Shopping Centre. Both restaurants have drive-thru and feature new innovations such as digital menu panels.

Restaurant Brands CEO, Russel Creedy, says they “expect customers to come from the local community and people travelling to the airport.”

Carl’s Jr. is still a relative newcomer to the New Zealand market but has quickly become a firm favourite with Kiwis.

Creedy says “Carl’s Jr. is the ultimate destination for burger enthusiasts. We use 100% certified Angus beef in our Thickburgers and every meal is made-to-order and delivered to your table, in an inviting environment.”

It has just launched a promotional burger called the Hawaiian Teriyaki Burger featuring its signature- charbroiled beef, teriyaki glaze and grilled pineapple.

Carl’s Jr. opens at 7am daily and features a breakfast menu, which includes breakfast platters, sandwiches, pancakes and hash rounds.

Each of the new restaurants will seat approximately 80 people and employ 40 people from the local community.

KFC has just launched two special Surf Safe Variety meals and will donate $2 per sale to Surf Life Saving NZ, which launches its annual appeal this week.

Restaurant Brands announces half year profit results for the half year ended 9 September 2013

17 October 2013

• Net Profit after Tax (excluding non-trading items) for the 28 weeks ended 9 September 2013 (1H 2014) was $8.8 million (9.0 cents per share), the same as the prior period (1H 2013). Reported profit (including non-trading items) was $9.7 million (9.9 cents per share), up $2.8 million or 41.4% on the prior period.

• Total revenues of $176 million were up 5.3% on the previous half year, mainly because of the contribution from the new Carl’s Jr. brand. Same store sales were up 2.9% for the half year, driven by ongoing improvement in Pizza Hut which was up 19.3%.

• Total brand EBITDA was up $0.2 million to $27.2 million, with a very strong performance by Pizza Hut, partly offset by lower earnings from KFC and new store establishment costs in Carl’s Jr.

• Non-trading items made a positive pre-tax contribution of $1.1 million, mainly arising from the successful sale and leaseback of two KFC stores in Lower Hutt and Greenlane.

• Directors have declared a fully imputed interim dividend payable on 22 November 2013 of 6.5 cents per ordinary share, consistent with last year.

Share Price

RBD Share Price

$5.08

0.03