KFC is among operators in the Restaurant Brands stable. Photo: RNZ / Joanna MacKenzie
Fast food operator Restaurant Brands has served up a disappointing full year profit hit by Covid-19 disruptions in the first part of the year, staff shortages and higher costs driven by strong inflation.
The group which operates in four regions, with KFC, Taco Bell, Carl's Jr. and Pizza Hut brands, reported a 38 percent drop in full year net profit, with sales up 16 percent.
Key numbers for the 12 months ended December compared with a year ago:
- Net profit $32.1m vs $51.9m
- Revenue $1.298b vs $1.114b
- Underlying profit $180.2m vs $172.7m
- Cost of goods sold $1.077b vs $912.4m
- Final dividend 16 cents a share
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New Zealand store sales rose 15 percent on the year earlier, largely as a result of KFC's strong sales, helped by a growing number of KFC and Taco Bell stores.
Underlying profit rose 7 percent, however, Restaurant Brands said the result compared with a poor prior period, which had been adversely affected by Covid-19-related store closures across the group's network throughout much of 2021.
Australian sales were up 13 percent on the year earlier, with same store sales growth of more than 7 percent, though underlying profit fell 4 percent.
Hawaiian operations also saw sales increased by 7 percent with 9.8 percent underlying profit assisted by a favourable currency exchange.
Californian sales rose 2.6 percent, but underlying profit fell 35 percent as a result of cost pressures, which continue to affect 2023's profitability.
Restaurant Brands' store numbers at the end of December totalled 376, comprising 143 in New Zealand, 83 stores in Australia, 75 in Hawaii and 75 stores in California.