RBD Q2 Sales Announcement

29 July 2021
ASX/NZX

Restaurant Brands Delivers Solid Sales Growth for the Second Quarter

Restaurant Brands’ total sales for the second quarter to 30 June 2021 were $280.9 million, an increase of 53.3% (including trading from its California acquisition last year).

The increase in sales of $97.6 million was as a result of a recovery from prior year’s COVID-19 trading restrictions (including Government-mandated COVID-19 store closures in April in New Zealand), coupled with the inclusion of trading for the California acquisition, 11 additional stores in Australia, and strong same store sales growth in all regions.

COVID-19 continues to impact the business, resulting in a higher mix of drive through and delivery sales in all markets.

Total year to date sales were $540.6 million, an increase of 41.0% on the prior year (including the California acquisition).

Company owned store numbers were up by 60 on the equivalent period last year to 350, primarily as a result of the acquisition of 69 stores in California in September 2020.

New Zealand

Second quarter sales for New Zealand were $124.1 million, an increase of $47.5 million or 61.9% on a total basis and 14.0% on a same store basis.

KFC, Pizza Hut and Carl’s Jr. all showed solid same store growth, whilst the newly opened Taco Bell stores continue to trade at expected levels.

Total year to date sales were $239.3 million, an increase in total of 37.0% on the prior year and 12.5% on a same store basis

The comparative total sales growth was assisted by the loss of four weeks of trading in April last year as a result of Government-mandated COVID-19 store closures, which resulted in lost sales of approximately $33 million in the quarter.

Store numbers decreased by four during the quarter to 132, with the sale of six Pizza Hut stores to independent franchisees partly offset by the opening of two new stores (KFC Takanini and Taco Bell Eastgate, Christchurch).

Australia

Second quarter sales for Australia were $A60.7 million ($NZ64.9 million), an increase of 32.9% in total, primarily due to reduced COVID-19 trading restrictions, new store openings late last year and store acquisition activity.

Same store sales were up 9.5% (local currency), with drive-through store sales continuing to grow strongly; however mall and in-line inner city store sales have yet to recover to pre-COVID-19 levels.

Total year to date sales were $A114.8 million ($NZ123.0 million), an increase of 21.6% on a total basis on the prior year and 5.2% on a same store basis.

Store numbers increased by one during the quarter to 76, following the opening of a new Taco Bell store in Green Square, Sydney. Compared with the prior year they were up 11 with acquisitions (five stores) and new store builds (six stores).

Hawaii

Second quarter sales in Hawaii were $US37.2 million ($NZ51.9 million), an increase of 4.7% on a total basis and 10.1% on a same store basis (local currency). Sales in $NZ were lower due to the 15% appreciation of the New Zealand dollar compared to the prior year second quarter.

Pizza Hut continues to respond well to the increased demand for home delivery. The small downturn last year in Taco Bell sales has reversed following some lifting of COVID-19 restrictions.

Total year to date sales were $US72.7 million ($NZ101.0 million), an increase of 5.7% on a total basis on the prior year and 9.9% on a same store basis.

Store numbers remained steady during the quarter at 73 stores.

California

Second quarter sales were $US28.7 million ($NZ40.1 million), up on both prior year levels and pre-purchase expectations.

Total year to date sales were $US55.2 million ($NZ77.3 million).

Store numbers remain unchanged from the 69 stores acquired in September 2020.

Half Year Results

The company expects to release its half year trading results on 24 August 2021.



Authorised by:

Russel Creedy Grant Ellis
CEO CFO
+64 9 525 8700 +64 9 525 8700


ENDS

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Announcement PDF