Restaurant brands get big help from Hawaiian operators as group sales rise but profits fall

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Restaurant Brands has KFC, Pizza Hut, Carl’s Jr and Taco Bell outlets. Photo / Luke Kirkness

Big fast-food operator Restaurant brands credited its Hawaiian business, more stores and a stronger U.S. dollar for surging first-half sales.

Presenting its half-year results at NZX today, the company said sales reached $584.9 million for the six months ending June 30.

This is an increase of $44.3 million over the prior six months.

The brand’s Ebitda before expenses fell $3.7 million to $84.3 million. The company said this was symptomatic of the major inflationary pressures the company faces in all markets.

But the company said strong results from its Hawaiian division and strong sales elsewhere helped offset those inflationary pressures.

The company today said it was facing the challenges of Covid-19, with resulting staff shortages hampering operations across all divisions.

And the pandemic has in some cases forced to reduce opening hours.

Restaurant Brands operates major fast food franchises KFC, Pizza Hut, Carl’s Jr and the newest addition to the scene, Taco Bell.

It said it now has 367 stores, including 11 new Taco Bell outlets in New Zealand and Australia.

In total, the company had 138 stores in New Zealand, 81 in Australia, 74 in Hawaii and 74 in California.

The company posted a group net profit after tax of $15.3 million for the six-month period. That was down $19.2 million from last half’s reported result.

At the start of last week, Restaurant Brands was one of the worst performers in the NZX 50, but then rebounded.

Today’s results come at a volatile time for some players in the fast food industry worldwide.

In Australia, Domino’s Pizza Enterprises fell 9.6% last week after posting strong gains when it reported results for the 2022 financial year.

The pizza chain saw an underlying reduction in after-tax profits of 12.5% ​​on 4.6% growth in global sales.

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