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Restaurant Brands New Zealand reports sales boost despite challenges

PUBLISHED

2024-05-01

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Restaurant Brands New Zealand (ASX:RBD) withstood a slowdown in Australia and a downturn in its small Californian operation to report a 7.9% boost in sales to NZ$333 million for the three months ended March.

The company said the strong sales growth in the New Zealand and Hawaiian markets offset the slowdown in Australian sales and the dip in California.

RBD operates the KFC, Pizza Hut, Taco Bell, and Carl's Jr. chains.

New Zealand sales for the first quarter were NZ$149.0 million, up 15.2% in total and 11.4% on a same-store basis.

Sales increased across all brands, driven by additional store openings, innovation through marketing initiatives, and improvement in trading hours, which has flowed through to solid transaction growth.

Australia sales for the first quarter were A$68.9 million (NZ$73.9 million), an increase of 1.4% in total from the prior year (local currency). Same-store sales were down 2.7% (local currency).

Hawaii sales for the first quarter were US$41.1 million (NZ$67.1 million), up 5.6% in total from the prior year (local currency). Same-store sales were up 6.7% (local currency).

"Hawaii trading remains solid, particularly in Taco Bell stores, driven by successful new product initiatives,” RBD said.

But in California, sales for the first quarter were US$26.3 million (NZ$43.0 million), down 4.2% in total from the prior year (local currency). Same-store sales were down 7.7% (in local currency).

Like Australia, RBD said California was impacted by the cost of living pressures, which continue to have a significant impact in this market on discretionary household expenditure. RBD said it remains focused on boosting margins and profit levels while maintaining brand health, protecting its strong customer base, and continuing to position the business to deliver sustainable long-term value.

"This is supported by ongoing strategic pricing and cost control programs across all markets, alongside investments into technology, product innovation, network expansion, and brand experience,” the company said.

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