Restaurant Brands New Zealand Limited Analysis

Overview

Restaurant Brands New Zealand Ltd (RBD) is a corporate franchisee that specialises in managing multi-site branded food retail chains. It is based in New Zealand but has operations in Australia and the United States (Hawaii, Guam and Saipan). Its restaurant support centre and corporate office is located in Penrose in Auckland, New Zealand. Restaurant Brands is listed on the New Zealand Stock Exchange under NZX code RBD and on the Australian Securities Exchange under ASX code RBD. As of February 2018, Restaurant Brands operated 314 stores: 94 KFC New Zealand, 61 KFC Australia, 36 Pizza Hut New Zealand, 22 Starbucks Coffee, 19 Carl's Jr., 37 Taco Bell Hawaii and 45 Pizza Hut Hawaii stores. The company employs over 9,000 staff across New Zealand, Australia and Hawaii and serves over 125,000 customers worldwide every day.

RBD was founded in 1997 to acquire the New Zealand restaurant operations of KFC and Pizza Hut. The prospectus issued at the time stated that 'as a listed company with its own dedicated management, board and financial resources, Restaurant Brands will be closer to the New Zealand market and have the potential to better capture growth opportunities, strengthen its competitive position and improve operating performance'. It has now leveraged that capability into the international arena.

Performance

The following information was extracted from Restaurant Brands New Zealand Limited's half year results, released on 29 August 2024:

RESTAURANT BRANDS RELEASES 30 JUNE 2024 HALF YEAR FINANCIAL RESULTS

• Record Group store sales of $687.2 million
• Net Profit After Tax (NPAT) of $12.6 million
• Group store EBITDA was $94.6 million, an increase of 20.8% on 1H 2023
• Store numbers (owned and franchised) now total 506

Auckland, 29 August 2024. Restaurant Brands New Zealand Limited (RBD or the Group), has reported today its financial results for the six months ended 30 June 2024 (1H 2024).

RBD delivered record Group store sales of $687.2 million for 1H 2024, a 7.3% increase on the same period last year (1H 2023).

Group NPAT of $12.6* million represents a significant improvement on 1H 2023.

Group store EBITDA reached $94.6 million, a significant increase of $16.3 million or 20.8% on 1H 2023.

*Included in Group NPAT is a non-cash net impairment charge of $3.3 million relating to property, plant and equipment and intangible assets ($2.5 million after-tax).

Restaurant Brands’ store numbers totalled 506, of which 378 are owned and 128 franchised. Four new stores were opened in 1H 2024, for a total of 13 net new stores from 1H 2023.