Restaurant Brands releases FY24 full year result

NZX/ASX
27 February 2025

RESTAURANT BRANDS NEW ZEALAND LIMITED RELEASES FY24 FINANCIAL RESULTS

• Total Group store sales of $1,393.6 million, a new company record
• Net Profit After Tax (NPAT) of $26.5 million, representing 62.6% improvement on the prior year
• Group Store EBITDA1 was $194.3 million, an increase of 8.9% on FY23
• Store numbers now total 521 (owned and franchised)

Auckland, New Zealand, 27 February 2025. Restaurant Brands New Zealand Limited (RBD or the Group) today announced its results for the full year ended 31 December 2024.

The Group delivered record total store sales of $1,393.6 million for the year, an increase of $71.4 million, or 5.4% on the prior year.

Driven by the implementation of strategic initiatives, including effective revenue management programmes, cost control measures, and operational efficiencies, NPAT was $26.5 million, representing a 62.6% improvement on the prior year.

RBD Chairman, José Parés, said the Group’s strategy has continued to deliver gradual margin recovery while maintaining value for customers through both pricing and experience, reinforcing the platform for long-term growth.

“These initiatives are strengthening customer loyalty, brand health, and our competitive position, while partially offsetting rising labour costs and consumer pressures.”

Group Store EBITDA reached $194.3 million, an 8.9% increase on the prior year. Margins improved to 13.9% of sales, up from 13.5% in FY23, driven by the Group’s margin recovery programme.

Parés noted that New Zealand and Hawaii delivered solid growth in 2024. “The performance of these two markets continues to offset a slower recovery in Australia and California. The Group remains on track to regain FY22 Group Store EBITDA margin levels, which serve as the baseline for future growth.”

RBD Chief Executive Officer, Arif Khan said significant advances were made against the Group’s growth strategy in 2024, alongside ongoing margin and profit recovery.

“Investments in technology and digital channels are increasing digital sales and customer access points. We’re delivering enhanced, value-led marketing programmes, product and menu innovations and new store models to align with evolving customer preferences.”

“Our unique, modern brands are growing and providing winning experiences for our customers, driven forward by the highly motivated RBD team and our franchisee network.”

The Group maintains healthy debt levels, with bank debt reducing to $284.5 million and a Net Debt to EBITDA ratio of 1.8:1. Capital expenditure was lower than the prior year, supporting strong cash flow and enabling a $22.5 million special dividend in December 2024.

Nine stores were opened over the course of the year, and four closed in California as part of the Group’s portfolio optimisation strategy. The store refurbishment programme has also continued, focusing on enhancing the portfolio by targeting key growth areas.

As at 31 December 2024, RBD has 521 stores (381 owned and 140 franchised) distributed as follows: 155 owned stores in New Zealand, 85 stores in Australia, 70 in Hawaii, and 71 in California. The store portfolio includes 141 Pizza Hut stores in New Zealand, of which 135 are owned and operated by independent franchisees.

1 Store EBITDA is earnings before interest, tax, depreciation, and amortisation. The Store EBITDA amounts referred to throughout this report are before General and Administration (G&A) expenses, NZ IFRS 16 and Other items. Store EBITDA is a non-GAAP financial measure and is not in accordance with NZ IFRS.

Division update

New Zealand

Same store sales in New Zealand were up 4.6%, with strong transaction growth year-on-year. Store EBITDA was $104.0 million, a 29.2% increase on FY23, and Store EBITDA margin was 16.6%, an increase on the 14.1% in FY23.

KFC achieved record sales, driven by innovative new products and viral marketing. Pizza Hut celebrated its 50th anniversary in the country with a limited return of vintage brand favourites and special menu items. Taco Bell saw growth in same store sales, transactions, and new store openings.

Digital sales continued to rise across all brands. KFC remains the leading contributor to New Zealand operations. Taco Bell has solidified its position in the QSR sector, and Carl’s Jr. has performed as expected.

The New Zealand division added eight new stores in FY24, reaching 155 RBD-owned locations. The franchise network also grew, with 18 new stores opened by independent operators.

Australia

Australian store sales totalled $A284.2 million, down 0.8% on FY23, with same store sales down 3.3%, due to a year-on-year reduction in transaction levels. Store EBITDA was down $A2.6 million, to $A32.3 million, and Store EBITDA margin declined from 12.2% to 11.4%.

Australia continues to face headwinds from high interest rates, inflation, and rising occupancy costs, which are straining consumer spending. While input costs remain stable, electricity costs increased significantly. To partially offset the increase, the Group has invested in energy efficiency initiatives and will continue implementing its margin control strategy. RBD operates 85 stores in Australia.

Hawaii

In Hawaii, store sales rose 6.3% to $US169.5 million, with same store sales up 4.2%. Store EBITDA increased by $US1.1 million to $US28.7 million, equivalent to 16.9% of sales, though margins were slightly impacted by year-on-year inflation and high energy costs.

Taco Bell continued to deliver strong sales, supported by successful marketing campaigns and product innovations. While Pizza Hut sales fell short of expectations, they improved on FY23 results, supported by new menu offerings and successful employee retention strategies that enhanced staffing conditions. RBD operates 70 stores in Hawaii, with no openings or closures in 2024.

California

In California, store sales totalled $US107.3 million, down $US3.6 million on the prior year, with same store sales declining 3.9%. Despite efforts to offset the 29% minimum wage increase introduced on April 1, 2024, Store EBITDA margin dropped 50.5% to $US4.6 million.

Shifts in customer behaviour and the elevated cost of living reduced average spend, as dining at home remained more affordable than dining out. However, same store sales improved in the fourth quarter, supported by new KFC marketing campaigns, in-store kiosk roll-outs, and local promotional efforts focused on value. Innovations introduced during the year positively impacted sales in the challenging market.

RBD operates 71 stores in California. As part of the portfolio optimisation strategy, four stores were closed during the year to focus on key growth areas.

In closing, Parés added, "We remain optimistic about the Group’s outlook. While the QSR sector continues to face challenges, our strategic investments and region-specific measures are supporting margin recovery, strengthening our brands, and positioning the Group and its investors for sustainable growth."

Supplementary table – summary data from the Directors’ Report
$NZm 31 Dec 2024 31 Dec 2023 Change ($) Change (%) Group store sales
1,393.6 1,322.2 +71.4 +5.4
Group NPAT 26.5 16.3 +10.2 +62.6
Group Store EBITDA 194.3 178.4 +15.9 +8.9
Group Store EBITDA as a % of sales 13.9 13.5
Store numbers (owned and franchised) 521 498

Authorised by:

Arif Khan - CEO
Phone: (09) 525 8700

Julio Valdés - CFO
Phone: (09) 525 8700



ENDS.

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