Restaurant Brands New Zealand shares jumped to a record after the fast food operator unveiled plans to expand across the Tasman, buying the biggest KFC fried chicken franchise in New South Wales for A$82.4 million in cash and scrip.
The shares climbed 9.8 per cent to $4.60, the highest since the stock listed in June 1997.
Auckland-based Restaurant Brands has signed a conditional agreement to buy the shares of QSR Pty, the biggest KFC franchisee in NSW with 42 stores, generating annual sales of A$100 million and earnings before interest, tax, depreciation and amortisation of A$15 million, it said in a statement.
"Australia is not an easy market for anything really, and fast food's not different, but neither's New Zealand and Restaurant Brands has managed to deliver," said Mark Lister, head of private wealth research at Craigs Investment Partners.
"You certainly have got an efficient business model that works well and they seem to know their market and their customers, so on day one the market seems happy to back them to at least replicate some of their success here, over there."