Restaurant Brands NZ posts dull sales in US, lowers guidance 

(Source: Bigstock)

Restaurant Brands New Zealand Limited has lowered its NPAT guidance for FY23 to US$7-9 million.

For the second quarter to June 30, the company’s sales in California were down 1.5 per cent on a total basis and 3.5 per cent on a same-store basis.

Sales in Hawaii were flat on a total basis, but up 4.2 per cent on a same-store basis.

The company opened one new store in California, but closed two locations in Hawaii during the quarter.

Restaurant Brands still recorded a 7.1 per cent increase in total sales in Q2, driven by sales growth in New Zealand and Australian markets.

The company 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-than-expected sales growth in California and Hawaii are among other factors.

“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 Limited operates the New Zealand outlets of KFC, Pizza Hut, and Carl’s Jr together with KFC in Australia, KFC in California, and Pizza Hut and Taco Bell in Hawaii, Guam and Saipan.

You have 7 articles remaining. Unlock 15 free articles a month, it’s free.