RBD down again today.
10% off its 52 week high.
Thought RBD would be a fairly good stock to hold during inflationary times or hard times? Bucket of KFC at home instead of taking the family to a restaurant
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RBD down again today.
10% off its 52 week high.
Thought RBD would be a fairly good stock to hold during inflationary times or hard times? Bucket of KFC at home instead of taking the family to a restaurant
Sure - some people will always pay money to eat lots of unhealthy fatty food, but then - did you check what growth rates are already baked into the current SP?
Maybe markets realizing that the pool for new customers might getting smaller? Existing customer pool might shrink as well - if you look at their target market - that's the people most likely to be severely impacted by Covid (overweight, unfit, unhealthy). Lower growth rates equal lower SP for a "growth" company. Easy as that.
RBD does have a rather high P/E ratio, sort of odd for the fundamentals. I like the company and it’s direction, but seems a tad overvalued.
RBD has always been ‘a tad overvalued’ ……even when I bought heaps sub $1 some 12 or so years ago ……still haven’t closed that trade out yet
But never topped up because it was ‘a tad overvalued’ when I thought I might do so.
Percentage wise I’ve made more out of greasy chicken than retirement villages …always laughs at that when I remember that
Sure, but possibly reflects more on the qualities of the trader rather than the qualities of the respective stock or the qualities of the product they are selling?
One of my best returns came from Wynyard shares ... but I would not draw any particular conclusions from that on the quality of the company or its products :p ;
Restaurant Brands Q4 Sales Announcement - NZX, New Zealand’s Exchange
Restaurant Brands’ total sales for the year ended 31 December 2021 were $1,068.2 million, an increase of $175.9 million (19.7%) from 2020. Approximately $100 million of the increase arose from an additional eight months trading this year from the California acquisition. Same store sales were strong despite the adverse impact of the continued COVID-19 crisis.
Restaurant Brands responded strongly to COVID-19’s continuing impact on the business in all markets, despite the challenging trading environment, government-mandated restrictions and changes in consumer behaviour. As a result the company achieved its long-standing goal of $1 billion in annual sales, with solid foundations for further sales growth in all four regions in place.
For the fourth quarter of the financial year (three months to 31 December 2021) total sales were $284.0 million, an increase of $14.9 million (5.5%) on the equivalent period last year. All regions had positive same store growth despite the ongoing impact of COVID-19.
Company owned store numbers were up by 11 on the equivalent period last year to 359, primarily from the acquisition of five KFC stores in Sydney earlier in the year and the ongoing builds of new Taco Bell stores in Australia and New Zealand. This was partly offset by the sale of several New Zealand Pizza Hut stores to independent franchisees.
New Zealand
Full year sales for New Zealand were $461.1 million, an increase of 12.4%, primarily from strong same store sales growth of 9.1%. It is estimated that the Government-mandated full store closures resulted in lost sales of $26 million in 2021 and $40 million in 2020.
Fourth quarter total sales for New Zealand were $126.2 million, an increase of 5.3% on the equivalent period last year, with Carl’s Jr. and Pizza Hut performing very strongly.
Store numbers increased by four during the quarter to 137, with the opening of three new Taco Bell stores (Dunedin, Rotorua and Sylvia Park – Auckland) and a new KFC store also in Sylvia Park. In addition two Carl’s Jr. stores were converted to a KFC (Avondale) and a Taco Bell (Auckland Airport).
Australia
Full year sales for Australia were $A230.0 million ($NZ244.1 million), an increase of 13.6% in total, primarily due to new stores and an increase of 1.4% on a same store basis (local currency).
Fourth quarter sales for Australia were $A62.2 million ($NZ65.5 million), an increase of 12.9%. On a same store basis sales were up 1.3% (local currency), with mall and in-line city stores continuing to be adversely impacted by COVID-19.
Store numbers increased by two during the quarter to 79, with the opening of two Taco Bell stores in Dee Why and Orange.
Hawaii
Full year sales in Hawaii were $US146.3 million ($NZ206.5 million), an increase of 5.0% on a total basis and 9.1% on a same store basis (local currency). Sales in $NZ terms are lower due to the appreciation of the New Zealand dollar against the US dollar.
Fourth quarter sales were $US36.6 million ($NZ52.7 million). This was an increase of 7.9% on a same store basis (local currency). Taco Bell showed strong growth from the ongoing removal of COVID-19 restrictions and Pizza Hut continues to respond well to the increased demand for home delivery.
Store numbers remained unchanged during the quarter at 73.
California
California full year sales were $US110.3 million ($NZ156.5 million) which were above expectations at acquisition. Prior year to date comparisons are for four months of trading following the acquisition of the California business in September 2020.
Fourth quarter sales were $US27.4 million ($NZ39.5 million), an increase of 2.5% on the on the equivalent period last year in total and up 2.2% on a same store basis (local currency).
Store numbers during the quarter increased by one to 70 with the acquisition of a KFC store in central Los Angeles from an independent franchisee.
Annual Trading Results
The company will release its annual trading results for the year ended 31 December 2021 on 28 February 2022.
Cool graphic in BusinessDesk showing how badly NZX50 stocks have done in January ... plots each stock
Restuarant Brands is only one that's UP .... isn't that cool .... greasy chicken wins again
https://businessdesk.co.nz/article/m...22-performance
Still going strong.....
Restaurant Brands Announces Annual Profit Result - NZX, New Zealand’s Exchange
$NZm Dec 2021 Dec 2020 Change ($) Change (%)
Total Sales 1,068.2 892.4 +175.8 +19.7
Net Profit After Tax 51.9 30.6 +21.3 +69.3
Key Points
• Our billion dollar sales target has been achieved with total sales for the year of $1,068.2 million, up against the previous year, with full year positive same store sales growth across all four of our operating divisions.
• Reported net profit after tax of $51.9 million for the year was up $21.3 million on the last year, despite the ongoing adverse impact of COVID-19.
• Combined store EBITDA (pre NZ IFRS 16) for the period was $172.7 million, up 17.2% on the previous year.
• Total store numbers increased by 11 to 359 including the acquisition of five stores in Australia and two stores in California.
• The Taco Bell brand, launched in New Zealand and Australia (New South Wales) in late 2019, has continued to grow with 18 stores now successfully operating in these markets.
• Directors have declared a dividend of 32.0 cents per share, payable on 22 April to all shareholders on the register as at 8 April. The dividend will be paid fully imputed to NZ tax resident holders.
Would love to invest in this company, but the valuation multiple is just too damn high. Congrats to anyone who managed to buy on the 2020 Dip!
I bought in many years ago (against the advice of my advisor) in the mid-90 cents. Then the calls for 'fat-tax' and curbs to fast food retailers became louder and louder. I guess I got a bit worried and sold in the high $2.00s.
One of my poorer investment decisions (but not the worst!), but seemed right at the time.....
Also liked the free shareholder voucher once a year. Do they still do that?
Nasty looking downtrend confirmed with the cross of death in mid January.
Just wondering whether it really does not matter that the regular consumption of their products makes many of their customers fat and unhealthy ...?
But probably it is just the rising interest rates and the dropping real estate prices which make punters feeling sick as well?
No worries ... another fatty chicken with large fries and an extra large coke will solve the misery.
I had some KFC goodness the other day. Juicy, tender, crispy skin and well priced!
With the cost of living crisis a lot of the usual restaurant outings might have to be replaced by a box of the colonel's finest?
KFC NZ will join Australia in replacing lettuce with cabbage as fast food joints struggle to source the leafy vegetable around the country.
https://www.nzherald.co.nz/nz/lett-u...TQGCRXU6B6LOQ/
Think this is a profit warning
Half year npat 14m-16m v 23m normalised last year …they say
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.
http://nzx-prod-s7fsd7f98s.s3-websit...951/375378.pdf
massive drop in profit , that inflation is killing them. cant keep increasing prices as there customer base wont like that
RBD highlights what inflation can do to profits
Sales up 8.4% ....pretty good in circumstances
Costs/Expenses up 10% .... they say inflation etc
Means NPAT down 30% (this years margin 2.6% v 4.2% v pcp
Other retailers in same boat?
Hey percy .... Snoopy will be after you for giving Russel that extra l
Been CEO for 15 years now ....done well has our Russel
Just as well Ted showed Vicki Salmon the door back then and let Russel have a go. I loved the SMH headline back then 'Salmon off menu at Restaurant Brands' and started the story with 'gone by lunch time'
I well remember that.
Also remember Arthur Lim having RBD as his top pick year after year when he presented for Macquaries.
But it never performed until Russell took the helm.
Think he was their CFO before that.
Margins will be increasing as they have no choice. in the next few months the price of cooking oils will increase by projected 30-40%, power by 5-10%, packaging by another 30-40%, or if they can get packaging, products unavailable in general, staff wages and commercial cleaning products which have risen quickly.
It’s grim and customer will need to pay or have no takeaways or restaurants. At McDonald’s you get 6 chicken nuggets for $7.30 now (I know they are not part of restaurant brands). You can buy a whole bag for $9 at supermarket if and when available.
Not good on the pricing point as a consumer. BlackPeter will be disappointed, he loves his KFC lol. I joke. It’s not good for you, but is delicious.
I thought RBD would perform well during this inflationary environment. Like people would swap the $200 restaurant bill for a $40 KFC bucket bill.
At least sales increased. RBD margins will return to long run avg in time. Good company ay
the almighty domino's just announced results why good they say the new yr has started with a slowdown in sales.
must be the $5 pizza's now $7 pizza's.
people cant afford them anymore
Restaurant Brands Half Year Financial Results 2022 - NZX, New Zealand’s Exchange
Key Highlights
($NZm) 1H 2022 1H 2021 Change ($) Change (%)
Total Group sales 584.9 540.6 +44.3 +8.2
Group NPAT (reported) 15.3 34.5 -19.2 -55.7
• Total Group sales for the six months to 30 June 2022 (1H 2022) were $584.9 million, up $44.3 million on the previous half year (1H 2021). Total sales growth was assisted by the inclusion of 17 additional stores and a stronger US dollar.
• Net Profit after Tax for 1H 2022 was $15.3 million (12.25 cents per share), down $19.2 million on 1H 2021. Worldwide inflationary pressures resulted in significant cost increases across all regions. Also, the prior period result included recognition of $11.4 million of loan forgiveness under the US Paycheck Protection Program (PPP).
• Brand EBITDA before G&A was down $3.7 million to $84.3 million. This is a reflection of the significant inflationary pressures facing the company in all markets. This was partially offset by the strong sales and, in particular, a very good overall result for the Hawaii division.
Group Operating Results
Restaurant Brands New Zealand Limited (RBD) has earned a Group Net Profit after Tax (NPAT) of $15.3 million for the six months ended 30 June 2022 (1H 2022). This is down $19.2 million on the last half-year’s reported result. The company continues to face cost inflation pressures across all markets but is mitigating the impact of these by implementing cost savings and taking price increases where possible. However the extent of cost inflation has meant that the opportunity to pass input costs on in the short term has been limited, with consequent short term adverse profit impacts.
RBD continues to face challenges from COVID-19 with resultant staff shortages hampering operations across all divisions and in some cases forcing reduced operating hours during the period.
Comparisons at a reported profit level are distorted by the recognition of $11.4 million ($US8.1 million) in the PPP loan that was forgiven during 1H 2021. After adjusting for the PPP loan, the underlying NPAT for 1H 2021 would be $23.1 million. This underlying decrease for 1H 2022 of $7.8 million reflects the effect of inflation as well as continued trading disruptions relating to COVID-19.
Total store sales hit a new high of $584.9 million, up $44.3 million or 8.2% on 1H 2021. Sales across all regions were up on 1H 2021 due to 17 additional stores and the strengthened US dollar.
Combined brand EBITDA at $84.3 million was down $3.7 million (4.2%) on 1H 2021, with the impact of cost inflation pressures only being partially off-set by strong sales growth over the current period.
Restaurant Brands’ store numbers now total 367, up 17 from 1H 2021. This is primarily driven by new store builds, including 11 new Taco Bell stores across NZ and Australia. There are now 138 RBD-owned stores in New Zealand, 81 stores in Australia, 74 in Hawaii, and 74 in California.
New Zealand Operations
New Zealand store sales were $251.8 million, up $12.5 million or 5.2% on 1H 2021. KFC sales remain strong and Taco Bell sales have grown $6.9 million from 1H 2021. Whilst down from historic highs of 1H 2021, same store sales were up 1.4% for 1H 2022, despite the adverse impact of COVID-19 related staff shortages which required many stores to reduce operating hours and/or operate with reduced capacity. The second quarter of 1H 2022 saw same store sales increase by 3.2%.
EBITDA was $40.6 million, a $2.5 million or 5.7% decrease on 1H 2021 with significant cost pressures, partially off-set by the strong store sales performance. EBITDA margin at 16.1% was down on prior year reflecting the effect of the cost pressures and the mix of less profitable Taco Bell brand sales as this business continues to build.
1H2022 1H2021 Change ($) Change (%)
Store sales ($NZm) 251.8 239.3 +12.5 +5.2
EBITDA ($NZm) 40.6 43.1 -2.5 -5.7
EBITDA as a % of Sales 16.1 18.0
Store Numbers 138 132
1H 2022 saw the successful introduction of a number of new products into the market, with Hot & Crispy Boneless Chicken (KFC) and Detroit Pizza (Pizza Hut) delivering sales growth. Carl’s Jr. continues to perform well. An e-commerce web site has been launched for Taco Bell as the focus on building a digital offering and improving delivery service continues.
The Pizza Hut business in New Zealand continues to grow strongly, not only from RBD’s own stores, but also from the 101 stores operated by independent franchisees under a Master Franchise Agreement with the company. Two new stores were opened in the first half with a similar number anticipated by the end of the year.
Operating profit for the NZ division (excluding the effect of NZ IFRS 16) was $22.7 million (down 20.8%). Inflation has had a significant impact on ingredient and input costs and continues to do so. In addition, labour shortages relating to the COVID-19 pandemic have significantly impacted the hospitality industry in New Zealand. This has disrupted the ability to operate at full trading hours across all stores and channels. The situation was particularly challenging during the first quarter of 2022 and, despite improvement during the second quarter, staff shortages remain an ongoing issue with high numbers of unfilled vacancies.
Whilst restricted availability of building materials and store equipment have slowed store development, new store builds continued with one KFC outlet in Whangarei and one Taco Bell outlet at Cuba Mall, Wellington opened during 1H 2022. Despite continued development challenges an additional three Taco Bell stores and two KFC stores are expected to open before the end of the year.
Australia Operations
In $A terms total sales in Australia were $A122.8 million, up $A8.0 million (or 7.0%) on last year, primarily due to the full effect of five additional KFC stores purchased during 1H 2021, the effect of additional store openings, and solid same store sales growth (up 3.4% for the half year).
In $NZ terms the Australian business contributed total sales of $NZ133.5 million (up 8.5%), a store EBITDA of $NZ14.2 million (down 13.3%) and operating profit (excluding the effect of NZ IFRS 16) of $NZ1.4 million (down 74.5%).
1H2022 1H2021 Change ($) Change (%)
Sales ($Am) 122.8 114.8 +8.0 +7.0
Store EBITDA ($Am) 13.0 15.2 -2.2 -14.5
EBITDA as a % of Sales 10.6 13.3
Store Numbers 81 76
Sales results in the second quarter have continued to see year on year improvement, with strongest recovery in both the CBD and mall stores. These had experienced the greatest adverse impact from
COVID-19 in 2020 and 2021. The launch of Uber Eats delivery service throughout the KFC network in June is expected to contribute to further sales growth into 2H 2022.
Store EBITDA margins of $A13.0 million (10.6% of sales) were down $A2.2 million or 14.5% on last year. The Australian business was negatively impacted during the early stages of the year with the escalation of COVID-19 cases impacting both restaurant staff availability and all major chicken suppliers. This contributed to reduced operating hours and store closures due to lack of staff availability and temporary chicken supply shortages.
The business continues to experience major cost pressures with escalating inflation levels driven by ongoing supply chain disruptions and increased freight and other input costs. The floods in northern and some western parts of New South Wales resulted in the temporary closure of a number of stores and has significantly impacted the agricultural sector further impacting supply availability.
The Australian business has continued to invest in the growth of Taco Bell, with the opening of two new stores in 1H 2022.
Hawaii Operations
Total sales in Hawaii for the period were $US76.0 million with store level EBITDA of $US13.7 million (18.0% of sales).
In $NZ terms the Hawaiian operations contributed $NZ115.1 million in revenues, $NZ20.8 million in EBITDA and an operating profit (excluding the effect of NZ IFRS 16) of $NZ11.2 million for the period, down $8.2 million on 1H 2021.
However the 1H 2021 result included other revenue of $11.4 million ($US8.1 million) in relation to the PPP loan drawn down at the onset of the COVID-19 pandemic in 2020, that was forgiven in June 2021. When normalised for the PPP loan forgiveness, operating profit (excluding the effect of NZ IFRS 16) for 1H 2022 was $3.3 million up on 1H 2021.
1H2022 1H2021 Change ($) Change (%)
Sales ($USm) 76.0 72.7 +3.3 +4.5
Store EBITDA ($USm) 13.7 11.6 +2.1 +17.6
EBITDA as a % of Sales 18.0 15.8
Store Numbers 74 73
Reported sales are up $US3.3 million with same store sales up 2.9%. Taco Bell sales increased significantly over 1H 2021 as the brand returned to pre-COVID-19 trading levels.
The Taco Bell Mexican Pizza was so successful that ingredients ran out across the US and required the promotion to finish ahead of schedule. It will be repeated during 2H 2022 and is expected to again drive strong sales for Taco Bell. Pizza Hut is also looking to roll out a new “Melts” product range which is expected to have a positive impact on the lunch time sales segment.
EBITDA margin as a % of sales is up from 15.8% to 18.0% (largely as a result of increased levels of Taco Bell sales in the overall sales mix) Store staffing challenges arising from COVID-19 continue to impact the business with stores having to operate to reduced trading hours on some occasions. The division also continues to face significant cost pressures, including a further increase in the minimum wage to take effect from October 2022.
Overall store numbers in Hawaii are up by one from 1H 2021 with the opening of one new Taco Bell store in April 2022 which is performing above expectations. A further Taco Bell store is expected to open in January 2023.
California Operations
Total sales in California were $US55.8million, up $US0.6m on last year off the back of three new store openings and the acquisition of three additional KFC stores, offset by a same store sales decrease of 3.0%.
In $NZ terms the Californian operations contributed $NZ84.5 million in revenues, $NZ8.8 million in EBITDA and an operating profit (excluding the effect of NZ IFRS 16) of $NZ0.4 million for the period.
1H2022 1H2021 Change ($) Change (%)
Sales ($USm) 55.8 55.2 +0.6 +1.0
Store EBITDA ($USm) 5.8 9.1 -3.3 -36.3
EBITDA as a % of Sales 10.4 16.5
Store Numbers 74 69
The division rolled over high sales in 2021, driven by strong Government stimulus payments. Consequently same store sales fell by 3.0%. A steep rise in the cost of ingredients has affected the business and price increases have been implemented in response. However, as with all divisions these need to be balanced against competitive pressures and the contraction of consumer purchasing power. Additionally, the cost of labour increased during 1H 2022 with staff shortages and increased overtime as teams stretched to cover COVID-19 related absences.
As a result, store EBITDA of $US5.8 million was down $US3.3 million on last year with EBITDA as % of sales of 10.4% vs 16.5% in 2021.
California store numbers grew by five through new builds and acquisition to 74 total stores, up from 69 stores in 1H 2021. Three new KFC stores were opened in 2022 over the span of six weeks in San Bernardino, Perris and Barstow. The opening day at KFC Barstow was one of the largest opening days for a KFC outlet in the United States. Perris and Barstow were among the first innovative ‘Next Generation’ KFC stores to open in the US market. The three new stores mark the first new store openings for the California division post-acquisition with more new stores scheduled to open later this year. One acquisition was completed in Desert Hot Springs consolidating our strong presence in the greater Palm Springs area.
Corporate & Other
General and administration (G&A) costs were $27.5 million, an increase of $3.1 million on 1H 2021. G&A as a % of total revenue was 4.5%, slightly up on 1H 2021 (4.3%). As with much of the business, this was primarily driven by cost inflation over the period along with the filling of vacancies that had remained open during the COVID-19 pandemic.
Depreciation charges of $21.5 million for the half year were $2.8 million higher than the prior year. The increase is due to the continued high level of new store builds and store refurbishments. Depreciation of leased assets is also up $1.2 million to $19.9 million with new leases increasing the associated right of use asset depreciation.
Financing costs of $19.8 million were up $2.2 million on prior year primarily due to an increase in lease interest of $1.8 million due to both new leases and existing leases being extended. Bank interest costs were $3.7 million, $0.3 million higher than prior year due to increased debt levels.
Tax expense was $5.3 million, down $4.2 million due to the lower earnings. The effective tax rate is 25.6%, up from 21.5% last year due to the higher relative level of assessable income in the Hawaii division.
Other Income / Expenses
Other income / expenses for the half year totalled $2.7 million, an increase of $0.8 million versus 1H 2021. This year’s costs included the initial one-off costs associated with the implementation of new company-wide financial systems ($3.4 million), partially off-set by an acquisition gain of $0.9 million. This gain is as a result of the net assets included in the acquisition of a California store being higher than the net consideration paid.
NZ IFRS 16
The impact of NZ IFRS 16 on the Group accounts for the half year is a reduction of $4.8 million on after-tax operating earnings (1H 2021 impact: $4.5 million).
The Consolidated Statement of Financial Position has right of use lease assets of $623.8 million, up $47.3 million since December 2021 due to the inclusion of the newly acquired store in California, various other new stores being opened and lease renewals. Lease liabilities of $725.3 million are also up by $56.5 million reflecting the increase in future lease commitments.
Statements of Cash Flow and Financial Position
Bank debt at the end of the half year was $290.6 million compared to $246.9 million at the previous year end. As at 30 June 2022, the Group had bank debt facilities totalling $NZ381.8 million available. Cash and cash equivalents decreased by $12.0 million during the period with net debt increasing by $55.7 million to $257.5 million over the half year. This is due to continued commitment to a strong capital investment programme and the payment of a $39.9 million dividend.
The company remains comfortably within all banking covenants with a Net Debt:EBITDA ratio of 2.1:1.
Operating cash flows were $48.4 million, down $14.0 million on 1H 2021. This is a direct reflection of the inflationary impact on trading margins combined with $2.0 million additional interest paid versus the prior half year.
Net investing cash outflows at $34.0 million, were $19.2 million lower than the $53.2 million in 1H 2021. 1H 2021 included the acquisition of stores in Australia for $25.3 million. The underlying spend on new stores as well as refurbishing stores throughout the network was up by $6.1 million.
A dividend of $39.9 million (32 cents per share) was paid to shareholders in April.
Outlook
Store numbers are expected to continue to grow in the second half despite continued building constraints. New store roll outs for both the KFC and Taco Bell brands will continue in New Zealand and Australia. The Hawaiian market will see another new Taco Bell completed in early 2023. The new store development programme is well under way in California, with up to three new KFC stores targeted for opening before year end.
The overall business continues to remain solid across all geographic markets as reflected in the strong sales performance, which is expected to carry over into the second half of the year. Trading results in recent months have also improved due to various actions taken to lessen the inflationary effect on the business.
The current results have been adversely affected by worldwide inflationary and COVID-19 pressures, the company continues work to mitigate their impact and improve profitability over 2H 2022. It is expected that cost inflation and margins will stabilise over the second half – however, it is not anticipated that the impact of a challenging 1H 2022 will be fully reversed by year end.
The continued impact of inflation as well as the rolling issues with COVID-19 makes it difficult to provide firm profit guidance; however the reported net profit after taxation for the 2022 year is expected to be in the range of $32-37 million.
What ? .. No Dividend this time Boss ? ;)
Probably a darn price hike instead .. :)
Well, what can one say?
Fatty food supplier with below average results and uncertain outlook ...
doubt this announcment will be a trend changer.
Oof - even after its large share price fall this year, still pretty meager returns for a company with currently a $1 Billion+ market cap.
But still one of the handful which hasn't been caned in today's sea of red :)
see inghams said in there results they are going to be raising chicken prices to help off set there cost increases. :scared: higher kfc prices coming .... i dont like it like that
Potential bad news for Restaurant brands California operations:
https://www.axios.com/2022/09/01/cal...w-wage-workers
Minimum wage for fast food workers in California may rise from $15.61 to as much as $22 per hour.
getting out before the carnage to come ?
Restaurant Brands announces retirement of its CEO And CFO
https://www.nzx.com/announcements/398364
Hey Snoops me old mate - our Russel and Grant both 'retiring' soon
Bit shocking eh - the end of an era (or more than an era)
Hope they've not decided that now is not 'peak performance' for the group and time to get out.
But you never know ... some young spark (maybe from Yum) could come in and make RBD even greater
Wow that’s a surprise! Not good news.
California just passed the fast food minimum wage fair pay act. Only thing to be decided now is how high the fast food minimum wage will be set at.
https://www.axios.com/2022/09/05/new...w-wage-workers
trying to save costs eh
Disgusting’: Kiwis concerned after change to KFC potato and gravy leaves ‘plastic’ taste
https://www.nzherald.co.nz/lifestyle...D3UOPNKE5QAGU/
https://www.nzx.com/announcements/401123
Restaurant Brands Sales up 32.3% with Roll Over of COVID-19 Lockdowns
Restaurant Brands’ total sales for the third quarter to 30 September 2022 increased to $322.2 million (up 32.3% over the equivalent period last year), as sales recovered from the impacts of the 2021 COVID-19 restrictions in New Zealand and Australia.
Worldwide inflationary pressures have continued from last quarter, with the company still experiencing significant cost inflation across all regions. The company continues to implement price increases where possible in response to these increased costs.
Total year to date sales reached $907.1 million (an increase of 15.7% on the prior year). Total sales were supported by the inclusion of 20 new stores (to 372 stores in total), lower levels of COVID-19 disruption and the strengthening US and Australian dollars over the prior year.
New Zealand
Third quarter sales for New Zealand were $137.6 million, up 43.9% in total and 2.2% on a same store basis.
Prior year trading was impacted by Government-mandated trading restrictions. Adjusting the prior year sales to account for an estimated $26 million of sales lost due to COVID-19 restrictions, sales increased by 13.1% during the quarter.
All brands showed sales growth, with staff isolation requirements reducing as COVID-19 restrictions continue to be eased and overall case numbers drop.
Total year to date sales were $389.4 million, an increase of 16.3% on the prior year and 1.6% on a same store basis.
Store numbers increased by two during the quarter to 140 stores, following the opening of new Taco Bell stores in Botany, Auckland and near Christchurch Airport.
Australia
Australia’s sales for the third quarter were $A65.5 million ($NZ73.1 million), an increase of 23.6% in total (local currency). Total sales growth over the prior year is distorted by the impact of COVID-19 Government restrictions imposed during 2021.
Same store sales were up 10.4% (local currency). Mall and in-line inner city store sales continued to recover towards pre-COVID-19 sales levels.
Total year to date sales were $A188.4 million ($NZ206.5 million). This is an increase of 12.3% on a total basis on the prior year and 5.6% on a same store basis.
Store numbers increased by one during the quarter to 82 following the opening of a new Taco Bell store in Chatswood, Sydney.
Hawaii
Sales for the third quarter in Hawaii were $US39.9 million ($NZ65.1 million), showing growth of 7.7% in total and 2.6% on a same store basis (local currency).
Hawaii trading continues to be strong, with sales growing past pre-pandemic levels. The full reintroduction of the Taco Bell Mexican Pizza Taco has exceeded sales expectations and is driving sales growth into the fourth quarter.
Total year to date sales were $US115.9 million ($NZ180.3 million), an increase of 5.7% on a total basis on the prior year and 2.8% on a same store basis.
Store numbers increased by one to 75 stores during the quarter with the opening of a new Taco Bell store in Kilauea.
California
California’s sales in the third quarter were $US28.5 million ($NZ46.4 million), an increase of 3.0% on a total basis but a decrease of 3.3% on a same store basis (local currency).
Same store sales have reduced on the prior year in the absence of Government stimulus payments and with Californian consumer spending falling in the face of high inflation levels.
Total year to date sales were $US84.3 million ($NZ130.9 million), an increase of 1.7% 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 75 stores following the opening of a new KFC store in Ridgecrest.
No mention of margins?
At half year margins were under pressure
What's causing the downtrend? 5yr lows.
Yep exactly - cost pressures will be chewing into Margins and bottom line
to the extent they aren't recoverable or offset by margins on recovered turnover levels
Was the last period's Dividend a one off flash in the pan as new economic factors
impact results going forward ?
collins kfc australia had there results yesterday
The rising cost of food such as the chicken, lettuce and oil needed for KFC’s products has eaten into the company’s revenue, with the difference in costs not expected to be covered until 2025.
https://www.news.com.au/lifestyle/fo...7049091951267f
Yeah a bucket of chicken with sides for the family is like $60 these days.
Its getting up there. Pizza, burgers or fish n chips cheaper option
A good SP fall yesterday, with further today
SP graph for past year shows a steady slide from north of $15 a year ago ( - 50% +)
Offset by what could be a one off dividend in April 2022 along the way
A potential candidate for minorities to be taken out by the South American controlling interests at these levels ?
Lets face it - with inflationary issues, bottom line may well be evaporating into each order that goes out the doors ;)
As KFC gets more expensive one has to consider who's the biggest customers of KFC , is KFC like smoking cigerette's you will buy it no matter what ?
we already hear stories of watered down potato and gravy will chicken become more fake going forward ? in the burgers
'Algae marinated in brackish seawater' sounds quite healthy compared with usual KFC fare BP. The boiled and roasted cabbage you can get by sticking the regular KFC coleslaw in the microwave, so you are almost there. With our Russel on the way out, a new CEO is needed. I reckon you are angling for that top job BP, and doing your 'dipping your toe in the water test' for your prospective menu changes on our Sharetrader members. That's what I think....
Good luck with your job application BTW.
SNOOPY
Imagine life without KFC. Sounds like hell
Hell? ... I like the way this discussion is going ...
Attachment 14361
https://www.nzx.com/announcements/403351
Restaurant Brands New Zealand Limited (RBD) announced today that Chief Executive Officer (CEO) for the New Zealand Business, Arif Khan, will take on the position of Global Chief Operating Officer (COO), effective today. After Russel Creedy retires, Mr Khan will be appointed Acting Group CEO.
In addition CPA Julio Valdés has been appointed Group Chief Financial Officer, effective June 1st, 2023, taking over for Grant Ellis whose retirement is scheduled for May 31st, 2023.
Arif Khan looks the goods. Internal promotion always good, even if its only acting after the retirement.
Phone just pinged - RBD has just hit the (very arbitrary) price alert I set of $6.50. :scared:
Down 57% in the last year!! :scared::scared:
Its in a wicked downtrend. You'd be brave to buy in now during this downtrend and with the margin pressures RBD face.
What is the market pointing to with RBD - an ongoing large hit to the bottom line
that takes out any possibility of further dividend and further major supply
pricing pressures / staffing pressures in play ? :)
What is likely with further inflationary pressure on discretionary loot on the loose ?
Has anyone any insight into why Finaccess went to a 75% holding instead of going to 90% and de-listing RBD....?
Tax or OIC issue?
Some might have assumed they were intending on using the listed shares as a currency for further market consolidation or retaining the listing to amalgamate a larger entity.
With the severe price decline one wonders if the minorities could be taken out shortly.... if the strategy was to use the shares as a currency, and is no longer as attractive, due to the recent market malaise.....?
Retail disposal income issues ahead ?
Labour issues ?
Supply chain issues ?
Multiple market issues exposures.
Don't know I would be that brave with the approaching treacherous economic conditions
some sectors of Retail are already experiencing in the local goldfish bowl :)
Does anyone else think RBD is still overvalued in light of the year long decline. Going off the previous acquisition and making some adjustments I don't feel current share price is reflective what their true value is.
I have always thought about that. If that is the case I am guessing buyout offer will about 20% premium on market price. Good luck picking the bottom imo I still think it is overvalued even with the year long decline.
DMP down ~20% at open this morning on a poor result; wonder if similar impacts for RBD...
As inflation, through increases in labour costs, food input costs, and energy, rapidly affected the Group’s uniteconomics, management moved quickly to adjust customer-facing pricing to protect franchisee profitability andsustainability. Initially Domino’s intent was to ‘earn’ additional pricing from customers through a ‘More for More’strategy, whereby customers would be encouraged to trade into additional, or higher ticket, items that would delivervalue for customers and additional earnings for stores.This resonated well with customers, but as cost increases continued unabated, Domino’s took additional steps topass through these costs to consumers. It was anticipated that pricing changes implemented at the end of Q1 woulddeliver an improvement of earnings in Q2. However, while the initial customer response was pleasing, some of thismargin improvement unwound in November as repeat purchases were affected, particularly in markets where orderfrequency is not as high (for example Japan and Germany).
In 2011 RBD sales were $325m and NPAT was $24m
Eleven years on for 2022 sales are $1,239m and NPAT is $32m
So $900m more sales and only $8m more profit
Something wrong somewhere
did they have borrow up to bolt on the new whole country franchises elsewhere ?
Rising interest rates wont help going forwards
then to find the readies for a dividend or two :)
Supply issues / costs, rising employment costs & issues etc coming through in latest results
impacting bottom line
Covid has got nothing to do with it. If anything they benefited from it.
From what I can gather, they took a gamble with debt funded expansion(more than normal). It backfired as in short their margins are being squeezed for many reasons and the company needs to be repriced due to int rates. Leverage only works when there are favourable factors.
https://www.nzherald.co.nz/business/...K6Y2WGWRS54HU/
Stock Takes: What’s behind Restaurant Brand’s billion-dollar valuation slump?
(Premium Content)
cabbage not lettuce ?
Something else that won't help their shareprice:
http://nzx-prod-s7fsd7f98s.s3-websit...811/390079.pdf
NZTX do you have access to the article. I would be interested to read it.
Anyway I thought I would give myself a exercise to figure out the current fair value. I was going through the previous reports, I noted the following.
"KFC New Zealand acquisition
In September 2020 the Group acquired a KFC store in New Zealand for $3.2 million. The store contributed sales of $0.9 millionand net profit after tax of $0.1 million in the consolidated statement of comprehensive income. The acquisition gives rise to$2.7 million of goodwill."
I accept interest rates have gone up significantly since. But they paid $3.2mill for npat of $100K. Seems abit excessive even back in that period. Am I missing something here??.
I don't know whether it was intentional or not to structure it with $2.7mill of goodwill (amortise large sums down the line).
SP seems to be turning a corner . ? 50 might cross the 200......
Meeting didn’t go well today?…
Be interesting to hear thoughts of anyone who attended or tuned in for meeting
Tough trading. Rev up 12% but margins are down… no surprise?
RBD had profit margin expansion AND SP multiple expansion during the last bull market cycle taking the SP up to $15-$16 was it??
Now profit margin AND multiple contraction happening. Ouch.
Anyways probably a good opportunity around here somewhere
Thinking Finaccess capital will come and buy the rest of 35m share? Representing their 25% float on the market.
They bought 75% holding years ago.
Fast food restaurants are busy all the time. Notice that the prices are all up...so...margin could be maintained up
Latest guidance bit of a disaster …..all those pizzas, chickens etc sales and only $12m to $16m NPAT
Heck they were making $20m plus years ago before they went global …..and sometimes we though that wasn’t too good
http://nzx-prod-s7fsd7f98s.s3-websit...852/399797.pdf
NPAT F21 $52m
Then F22 was $32m
This year $12m to $16m
Sales growing profits disintegrating …….blame costs etc etc
I say bring back our Russel ….you say so Snoopy
The longtime CEO and CFO saw the writing on the wall and bailed at the peak.
It not just a margin issue in California.. something wrong there when sales go backwards. Did they buy a bunch of duds?
How low can this go before major shareholder buys the rest of the company.
A couple of months ago CEO told shareholders that F23 profit would be ‘in the vicinity of last years result’
Lots happen …not even going to be half of last years result
SP is down half since fy 2022 update..so the market expected this ?
I reckon Finaccess will come n buy the rest of 25% shares..
When the Finaccess 'takeover' happened, they made it clear that they liked having the discipline that being partially listed brings (they do this with other listed entities they control as well). I see no reason why that opinion might have changed in the interim period. So I would be very surprised if they make a bid for 100% ownership of RBD now.
They already control the company. Today's quarterly sales announcement makes it clear they have a 'path to profitability plan'. So why get involved in a pointless 'mop up' exercise that offers Finaccess no benefit, and takes away their previously announced reason for leaving the company partly listed in the first place?
SNOOPY
Because it is cheap....
Look at RAZ 's post above. The share may be trading at a half the price it was a few years ago. But it is not cheap by any FA measure I can see. Just because the price has gone down, does not mean it is cheap! If the share price dropped to under $3, then you might have an argument.
SNOOPY
No more scallops and chips, this year kfc quarter packs and big buckets
Aus is doing well though, up 13 perct revenue
Edit: have clocked 1000 posts, time to celebrate with KFC for everyone
Never got any scallops on my quarter pack. Which store did U go?
Wonder I should buy some.
Based on Winner's serko formula....SP high was $15...now it is $6....
Winner...what do U think?