COVID-19 continues to affect Restaurant Brands’ business operations, with high case numbers resulting
in staffing issues for the business as well as its contractors and suppliers.
Worldwide inflationary pressures have resulted in the company experiencing significant cost inflation
across all regions. The company has implemented price increases where possible in response to
increased costs.
Preliminary management financial results for the half year ending 30 June 2022 indicate that NPAT for
the period will be between $14 million and $16 million (half year 2021 NPAT was $34.5m). The half
year for 2021 included one-off income of $11.4 million arising from the forgiveness of the Hawaiian PPP
loan.
Restaurant Brands’ total sales for the second quarter to 30 June 2022 increased to $309.5 million (an
increase of 10.2% over the equivalent period last year). Total year to date sales reached $584.9 million
(an increase of 8.2% on the prior year). Total sales were supported by the inclusion of 17 new stores
(to 367 stores in total) and the strengthening US dollar since the equivalent period last year.
New Zealand
Second quarter sales for New Zealand were $133.3 million, up 7.4% in total and 3.2% on a same store
basis.
All brands showed sales growth, despite the impact of shorter trading hours for some stores due to
staff isolation requirements and lower dine-in traffic with the ongoing Omicron variant outbreak.
New product innovations continue to lift sales with Hot and Crispy Boneless Chicken (KFC), Detroit
Style Pizza (Pizza Hut) and Il Diablo Burger (Carl’s Jr.) all proving very popular with customers.
Total year to date sales were $251.8 million, an increase of 5.2% on the prior year and 1.4% on a same
store basis.
Store numbers remained constant during the quarter at 138 stores, but up six on the prior year.
Australia
Australia’s sales for the second quarter were $A64.0 million ($NZ70.4 million), an increase of 5.6% in
total (local currency).
Same store sales were up 5.0% (local currency). Mall and in-line inner city store sales are now
beginning to recover towards pre-COVID-19 levels.
Total year to date sales were $A122.8 million ($NZ133.5 million). This is an increase of 7.0% on a total
basis on the prior year and 3.4% on a same store basis.
Store numbers increased by one during the quarter to 81 (five up on the prior year), following the opening
of a new Taco Bell store in Bungarribee, Sydney.
Hawaii
Sales for the second quarter in Hawaii were $US40.4 million ($NZ62.1 million), showing solid growth of
8.6% in total and 3.6% on a same store basis (local currency).
With the removal of COVID-19 dine-in restrictions in Hawaii, the dine-in market is rebounding towards
pre-pandemic levels. This resulted in a lift in sales for Taco Bell, partly offset by previous large Pizza
Hut delivery growth easing.
Total year to date sales were $US76.0 million ($NZ115.1 million), an increase of 4.6% on a total basis
on the prior year and 2.9% on a same store basis.
Store numbers increased by one to 74 stores during the quarter with the opening of a new Taco Bell
store in Ho’okele.
California
California’s sales in the second quarter were $US28.4 million ($NZ43.7 million), a decrease of 1.2% on
a total basis and 6.1% on a same store basis (local currency).
Sales have dipped on the prior year due to the rolling over of large Government stimulus payments
made in 2021 and COVID-19 related supply chain disruptions leading to instances of key ingredient
shortages.
Total year to date sales were $US55.8 million ($NZ84.5 million), an increase of 1.0% on a total basis on
the prior year but a decrease of 3.0% on a same store basis.
Store numbers increased by one during the quarter to 74 stores (five up on the prior year), following the
opening of a new KFC store in Barstow.
Half Year Results
The company expects to release its half year trading results on 29 August 2022.
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DYOR
i do not hold this share ( but it is on my watch-list )
am tempted to lob this in as my comp. tip ( but still haven’t decided yet )
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