Company says all three of its chains poised for bigger returns
Restaurant Brands NZ Ltd raised revenue by 9% in the year to 30 November but net profit fell 24.6%, which the company attributed to its expansion programme.
Looking forward, Restaurant Brands says the Pizza Hut chain is on a sustainable growth path and has new products to roll out in 2001, Starbucks Coffee is well placed to create shareholder value, and the company has a programme to revitalise the KFC brand.
Not that KFC was a poor performer: Restaurant Brands said KFC’s earnings before interest, tax, depreciation and amortisation (ebitda) rose 4.4% to a record $36.3 million, and ebitda margin was also a record at 20.6%.
The 2000 accounts are for a 53-week period, compared to the usual 52 weeks. The company wants to change its balance date to 28 February so year-end accounting can be done during the quieter post-holiday trading period. It will issue accounts next November, but its next audited balance date will be 28 February 2002.
Operating revenue rose 9% to $236.6 million in 2000, the operating surplus before unusuals and tax rose 2.1% to $18.8 million (a change which can almost be discounted through the extra week’s trading), the operating surplus before tax fell 21.6% to $14.6 million and the bottom line was a $9.8 million profit, down from $13 million.
Basic earnings per share fell 30.4% to 10.65c.
The fully imputed final dividend of 5.5c maintains the full-year total of 10c, but is after the 1:12 bonus issue, which means the year’s dividends are up 8%.
Excluding abnormals, the $12.6 million profit was only $400,000 short of the 1999 result. Restaurant Brands said the after-tax charge for costs associated with the Eagle Boys acquisition and rationalisation was $2.8 million. The four-month integration also cut Pizza Hut trading profit by $700,000 after tax.
The company said the integrated Pizza Hut’s share of the home delivery and takeaway pizza market was 65%. Pizza Hut will make beer and wine available for home delivery after successful testing last year, and will also offer a range of energy drinks, confectionery, snacks and icecream.
The group plans to open two new KFC stores and 13 Starbucks stores this year, lifting the total number of outlets to 201.