Restaurant Brands Q3 Sales Announcement

26 October 2022
ASX/NZX

Restaurant Brands Sales up 32.3% with Roll Over of COVID-19 Lockdowns

Restaurant Brands’ total sales for the third quarter to 30 September 2022 increased to $322.2 million (up 32.3% over the equivalent period last year), as sales recovered from the impacts of the 2021 COVID-19 restrictions in New Zealand and Australia.

Worldwide inflationary pressures have continued from last quarter, with the company still experiencing significant cost inflation across all regions. The company continues to implement price increases where possible in response to these increased costs.

Total year to date sales reached $907.1 million (an increase of 15.7% on the prior year). Total sales were supported by the inclusion of 20 new stores (to 372 stores in total), lower levels of COVID-19 disruption and the strengthening US and Australian dollars over the prior year.

New Zealand

Third quarter sales for New Zealand were $137.6 million, up 43.9% in total and 2.2% on a same store basis.

Prior year trading was impacted by Government-mandated trading restrictions. Adjusting the prior year sales to account for an estimated $26 million of sales lost due to COVID-19 restrictions, sales increased by 13.1% during the quarter.

All brands showed sales growth, with staff isolation requirements reducing as COVID-19 restrictions continue to be eased and overall case numbers drop.

Total year to date sales were $389.4 million, an increase of 16.3% on the prior year and 1.6% on a same store basis.

Store numbers increased by two during the quarter to 140 stores, following the opening of new Taco Bell stores in Botany, Auckland and near Christchurch Airport.

Australia

Australia’s sales for the third quarter were $A65.5 million ($NZ73.1 million), an increase of 23.6% in total (local currency). Total sales growth over the prior year is distorted by the impact of COVID-19 Government restrictions imposed during 2021.

Same store sales were up 10.4% (local currency). Mall and in-line inner city store sales continued to recover towards pre-COVID-19 sales levels.

Total year to date sales were $A188.4 million ($NZ206.5 million). This is an increase of 12.3% on a total basis on the prior year and 5.6% on a same store basis.

Store numbers increased by one during the quarter to 82 following the opening of a new Taco Bell store in Chatswood, Sydney.

Hawaii

Sales for the third quarter in Hawaii were $US39.9 million ($NZ65.1 million), showing growth of 7.7% in total and 2.6% on a same store basis (local currency).

Hawaii trading continues to be strong, with sales growing past pre-pandemic levels. The full reintroduction of the Taco Bell Mexican Pizza Taco has exceeded sales expectations and is driving sales growth into the fourth quarter.

Total year to date sales were $US115.9 million ($NZ180.3 million), an increase of 5.7% on a total basis on the prior year and 2.8% on a same store basis.

Store numbers increased by one to 75 stores during the quarter with the opening of a new Taco Bell store in Kilauea.

California

California’s sales in the third quarter were $US28.5 million ($NZ46.4 million), an increase of 3.0% on a total basis but a decrease of 3.3% on a same store basis (local currency).

Same store sales have reduced on the prior year in the absence of Government stimulus payments and with Californian consumer spending falling in the face of high inflation levels.

Total year to date sales were $US84.3 million ($NZ130.9 million), an increase of 1.7% on a total basis on the prior year but a decrease of 3.0% on a same store basis.

Store numbers increased by one during the quarter to 75 stores following the opening of a new KFC store in Ridgecrest.


Authorised by:

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


ENDS

---

Announcement PDF