Wary Restaurant Brands lowers guidance despite rising sales
Restaurant Brands New Zealand has lowered its NPAT guidance for FY23 to $11-15 million despite a growth in sales in most markets, including Australia.
Total sales for the second quarter to June 30 jumped by 7.1 per cent to $307.9 million, reflecting ongoing post-Covid recovery and price increases implemented across all markets.
Australia’s sales were $72.4 million, up 13 per cent year over year, while same-store sales also increased by 8.4 per cent.
The company opened two new Taco Bell stores in Bathurst and Cessnock, raising the number of locations in Australia to 85.
Despite the positive results, Restaurant Brands predicts that recovery in the second half will be weaker than expected as it continues to face global inflationary pressures, which is having a significant impact on profits.
Cost increases in the New Zealand business and lower sales growth in the US market are among other factors.
The company says it has implemented price increases and cost control strategies but has yet to offset input cost surges.
“We acknowledge this adjustment will be disappointing for shareholders,” said Jose Pares, Restaurant Brands New Zealand chairman.
The board of directors wishes to provide assurance that the company is diligently managing these short-term challenges and have full confidence in the new leadership team to deliver on our strategy to provide continued long-term shareholder value.”
Restaurant Brands New Zealand operates the New Zealand outlets of KFC, Pizza Hut, and Carl’s Jr together with KFC outlets in Australia and California, and Pizza Hut and Taco Bell in Hawaii, Guam and Saipan.
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