Restaurant Brands Q4 Sales Announcement

25 January 2023
ASX/NZX

Restaurant Brands Sales up 16.9% for the Fourth Quarter

Restaurant Brands’ total sales for the fourth quarter to 31 December 2022 increased to $332.0 million (up 16.9% over the equivalent period last year), as sales recovered from the impacts of the 2021 COVID-19 outbreak in New Zealand and Australia.

Worldwide inflationary pressures continue, 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, but margins remain under pressure.

Full year sales reached $1,239.0 million (an increase of 16.0% on the prior year). Total sales growth was supported by the inclusion of 17 new stores (to 376 stores in total), lower levels of COVID-19 disruption and the strengthening US and Australian dollars over the prior year.

New Zealand

Fourth quarter sales for New Zealand were $139.8 million, up 10.7% in total and 4.5% on a same store basis.

Sales grew across all brands, largely driven by price increases and the benefit of the removal of COVID-19 restrictions.

Total annual sales were $529.2 million, an increase of 14.8% on the prior year and 2.4% on a same store basis.

Store numbers increased by three during the quarter to 143 stores, following the opening of new KFC stores in Ruakura and Richmond, and the acquisition of the KFC inside the Auckland Airport International Terminal.

Australia

Australia’s sales for the fourth quarter were $A70.6 million ($NZ76.9 million), an increase of 13.5% in total (local currency).

Same store sales were up 7.4% (local currency). Mall and in-line inner city store sales continued their recovery towards pre-COVID-19 sales levels.

Total sales for the full year totalled $A259.0 million ($NZ283.4 million). This is an increase of 12.6% on a total basis on the prior year and 6.1% on a same store basis.

Store numbers increased by one during the quarter to 83 following the opening of a new KFC store in South Kempsey, with a new Taco Bell store in Emerald Hills offsetting the closure of the under- performing Dee Why Taco Bell store.

Hawaii

Sales for the fourth quarter in Hawaii were $US40.4 million ($NZ67.2 million), up 10.4% in total and 3.2% on a same store basis (local currency).

Hawaii trading continues to be strong, with the Hawaiian economy improving on increased tourism over last year.

Total year sales were $US156.4 million ($NZ247.5 million), an increase of 6.9% on a total basis on the prior year and 2.9% on a same store basis.

Store numbers remained constant during the quarter at 75 stores.

California

California’s sales in the fourth quarter were $US29.0 million ($NZ48.1 million), an increase of 5.7% on a total basis but a decrease of 2.4% on a same store basis (local currency).

Same store sales have reduced on the prior year largely due to reduced Californian consumer spending in the face of high inflation levels and the absence of government stimulus payments.

Total year sales were $US113.2 million ($NZ179.0 million), an increase of 2.7% on a total basis on the prior year but a decrease of 2.9% on a same store basis.

Store numbers remained constant during the quarter at 75 stores.

Annual Trading Results

The company will release its annual trading results for the year ended 31 December 2022 on 28 February 2023.


Authorised by:

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


ENDS

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Announcement PDF