Restaurant Brands’ total sales up $308 million on last year

Fast food operator Restaurant Brands’ total sales for the first quarter of the year are up 12 percent to $308.6 million.

The group, which operates in four regions, with KFC, Taco Bell, Carl’s Jr and Pizza Hut brands, said sales have recovered from the Omicron Covid-19 outbreak and price increases across all markets took effect.

“Worldwide inflationary pressures continue, albeit at a lower rate,” the company said in an update to the NZX.

“While the company continues to implement price increases in response to these increased costs, margins remain under pressure.”

Among the group’s New Zealand stores, first quarter sales were up 9.2 percent on the same time last year, and up 7.4 percent on a same store basis, to a total of $129.4m.

“Sales grew across all brands, largely driven by price increases and the easing of pandemic-related trading constraints,” the company said.

Meanwhile, sales at Restaurant Brands’ Australian stores increased 15.5 percent in the first quarter on the same period last year, to $A67.9m.

Same store sales were up 11.2 percent, as mall and in-line inner city store sales recovered to near pre-Covid-19 levels.

The company said its stores in California and Hawaii also saw an increase in sales compared to the same quarter least year.

California weaker than expected – analyst

Forsyth Barr equities analyst Margaret Bei said same store sales growth was positive across all regions, except California, where it decreased by 4 percent, which Restaurant Brands attributed to customers shifting to value-oriented menu and promotional items.

Bei said New Zealand sales were broadly in line with expectations, while the outperformance of stores in Australia in local currency and Hawaii were offset by a weaker-than-expected performance in its California stores.

Hawaii sales held steady at near record levels, supported by new store openings in the fourth quarter of 2022, she said.

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