The chairman of KFC & Carl's Jr. parent, Restaurant Brands, says he worries about obesity but the company's future is 'very bright'.
Restaurant Brands New Zealand has posted record growth in its half-year result, with new store openings contributing to a growth in sales.
Net profit after tax (NPAT) grew significantly to $12.6 million, up 476% or $10.4m compared to 1H 2023, with total revenue up 7.3% to $687.2 million, compared to $640.2m in 1H 2023.
Total store Ebitda for the group was $94.6m, up 20.9% on 1H 2023.
Restaurant Brands chairman José Parés Gutiérrez said he was proud of the group’s result, and new store openings across all its brands contributed to its expanding reach.
“In terms of the regions where RBD operates, performance in New Zealand and Hawaii are particularly noteworthy as both regions showed significant improvements, with solid growth in 1H 2024,” Parés said.
Restaurant Brands chariman José Parés Gutiérrez pointed to New Zealand's performance as particularly noteworthy.
The NZ arm of the group added seven new stores over the year, growing to 150 stores total across its brands including KFC, Taco Bell, Pizza Hut, and Carls Jr.
NZ sales were up 13.7% on 1H 2023 to $309.6m, with same-store sales up 10% thanks to impressive performances from KFC and Taco Bell which both had double-digit growth.
Store Ebitda for NZ was $49.2m, up 52.8% on 1H 2023, with store Ebitda margin also significantly increasing to 15.9%.
Restaurant Brands NZ chief executive Arif Khan, in charge of operations across NZ, Australia, Hawaii, and California, said the group was expanding its store portfolio and investing in new technologies to drive growth.
“We continue to push the boundaries of creativity to deliver insight-driven marketing and social media programmes, which are creating virality and solidifying our brands at the forefront of culture,” Khan said.
Restaurant Brands NZ CEO Arif Khan. Photo / Restaurant Brands
He said margin recovery initiatives implemented in the second half of 2023 would keep delivering improvements over the next 18 months.
Market reaction was mixed, with Jarden analysts Guy Hooper and Nick Yeo expressing concern for the brand’s other territories.
“While sales beat expectations, we note Australia is showing signs of slowing and New Zealand growth supported by longer opening hours, we look for more colour on how this should annualise,” they said.
“Margin accretion is encouraging [but] it has been driven by a faster-than-expected recovery in New Zealand and Hawaii while more difficult markets remain a challenge, perhaps limiting the rate of expected margin recovery from here.”
Back in May, Restaurant Brands chairman José Parés Gutiérrez said he definitely worried about obesity.
He told Markets with Madison he prioritised his own health and it was up to customers to do the same.
“We need to exercise, we need to eat well, we need to enjoy life.
“What causes the harm is the excess of consumption. The excess is something that you choose.”
In 2023, the leadership transitioned for the group after former chief executive Russel Creedy and chief financial officer Grant Ellis retired after serving 20 years at the business.
