Restaurant Brands Q1 Sales Announcement

Thursday 28th April 2022

Restaurant Brands’ total sales for the first quarter to 31 March 2022 were $275.4 million, an increase of 6.0% over the equivalent quarter last year.

The increase in sales of $15.7 million for the quarter was across all four regions the business operates in.

COVID-19 continues to adversely impact the business, with the high case numbers from the Omicron variant causing disruptions to staffing levels and dine-in transactions.

Company owned store numbers were up by 11 on the equivalent period last year to 364, primarily due to new store construction.

New Zealand

First quarter sales for New Zealand were $118.5 million, an increase of 2.9% in total and a decrease of 0.5% on a same store basis.

KFC same store sales growth was reduced by shorter trading hours for some stores due to staff isolation requirements and the lack of dine-in traffic due to the ongoing COVID-19 outbreak, particularly within the Auckland region.

Pizza Hut and Carl’s Jr. showed solid same store growth, whilst the newly opened Taco Bell stores continue to trade at expected levels.

Store numbers increased by one during the quarter to 138, with the opening of two new stores (KFC – Whangarei South and Taco Bell – Cuba Street, Wellington), partly offset by the closure of the Queen Street Carl’s Jr. store in Auckland’s CBD.

Australia

First quarter sales for Australia were $A58.8 million ($NZ63.1 million), an increase of 8.7% in total (local currency), due to new store openings late last year and store acquisition activity.

Same store sales were up 1.6% (local currency). The high COVID-19 case numbers in New South Wales were reflected in a higher drive-through sales mix, with mall and in-line inner city store sales still to recover to pre-COVID-19 levels.

Store numbers increased by one during the quarter to 75, following the opening of the new Taco Bell store in Broadway, Sydney.

Hawaii

First quarter sales in Hawaii were $US35.6 million ($NZ53.0 million), an increase of 0.4% in total and 2.1% on a same store basis (local currency).

With the easing of dine-in restrictions in Hawaii, the market saw a shift back to dine-in rather than delivery sales. This resulted in a strong lift in sales for Taco Bell, partly offset by a partial pulling back in the previous large Pizza Hut delivery growth.

Store numbers remain unchanged at 73 stores during the quarter.

California

First quarter sales in California were $US27.4 million ($NZ40.7 million), an increase of 3.4% on a total basis and 0.3% on a same store basis (local currency).

The sales growth of the prior year has been maintained, despite rolling over two large Federal stimulus payments made in January and March 2021, which resulted in strong KFC sales growth during the first quarter of 2021.

Store numbers increased by three during the quarter to 73 stores, following the opening of two KFC stores (Waterman Ave (San Bernardino) and Perris), coupled with the acquisition of a KFC store in Desert Hot Springs from an independent franchisee.

Annual Shareholders’ Meeting

The Annual Shareholders’ Meeting of the company will be held on Thursday 26 May 2022, commencing at 10.00 am.

Restaurant Brands Q1 Sales Announcement

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