Restaurant Brands New Zealand Limited Analysis

Overview

Restaurant Brands New Zealand Ltd (RBD) is a corporate franchisee that specialises in managing multi-site branded food retail chains. It is based in New Zealand but has operations in Australia and the United States (Hawaii, Guam and Saipan). Its restaurant support centre and corporate office is located in Penrose in Auckland, New Zealand. Restaurant Brands is listed on the New Zealand Stock Exchange under NZX code RBD and on the Australian Securities Exchange under ASX code RBD. As of February 2018, Restaurant Brands operated 314 stores: 94 KFC New Zealand, 61 KFC Australia, 36 Pizza Hut New Zealand, 22 Starbucks Coffee, 19 Carl's Jr., 37 Taco Bell Hawaii and 45 Pizza Hut Hawaii stores. The company employs over 9,000 staff across New Zealand, Australia and Hawaii and serves over 125,000 customers worldwide every day.

RBD was founded in 1997 to acquire the New Zealand restaurant operations of KFC and Pizza Hut. The prospectus issued at the time stated that 'as a listed company with its own dedicated management, board and financial resources, Restaurant Brands will be closer to the New Zealand market and have the potential to better capture growth opportunities, strengthen its competitive position and improve operating performance'. It has now leveraged that capability into the international arena.

Performance

The following information was extracted from Restaurant Brands New Zealand Limited's full year results, released on 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.