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Restaurant Brands Total Sales Impacted By COVID-19 During Second Quarter

Wednesday 29th July 2020

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Restaurant Brands’ second quarter sales were materially impacted by Government-mandated trading restrictions implemented in response to the COVID-19 crisis. All stores in New Zealand were closed between 25 March and 28 April, and then only open for delivery and drive through until 14 May. Australian stores operated without dine-in for the quarter and 10 mall stores were closed for half of the quarter. Hawaiian stores operated without dine-in for the entire quarter.

Restaurant Brands’ total sales for the second quarter of the financial year (three months to 30 June 2020) were $183.3 million, a decrease of $22.6 million or 11.0% on the equivalent period last year primarily due to the full closure of the New Zealand stores for most of April.

Total year to date sales were $383.4 million, a decrease of 3.2% on the prior year; however on a same store basis (removing the impact of stores closed because of the COVID-19 crisis) all divisions recorded growth despite these disruptions.

Company store numbers were up by three on the equivalent period last year to 290.

New Zealand

Second quarter total sales for New Zealand were $76.6 million, a decrease of 28.8% on the equivalent period last year as a result of the Government-mandated full store closures during April.

However on a same store basis sales were up 3.0% for the quarter, despite nearly three weeks of delivery and drive through trading only, with KFC and Carl’s Jr. continuing to trade strongly once COVID- 19 restrictions were lifted.

Year to date sales for New Zealand were $174.6 million, a decrease of 15.7% in total; but up 2.7% on  a same store basis.

Store numbers increased by two during the quarter to 150, with openings of a KFC in Christchurch CBD and a Taco Bell in Auckland CBD.

Australia

Second quarter sales for Australia were $A45.7 million ($NZ48.8 million), a decrease of 0.6% arising from the ongoing unavailability of instore dining due to local COVID-19 restrictions. On a same store basis sales were down 1.3% (local currency).

Year to date sales for Australia were $A94.4 million ($NZ99.1 million), an increase of 6.1% on a total basis due to new store openings late last year and up 0.3% on a same store basis (local currency).

Store numbers remained steady at 65 during the quarter.

United States

Second quarter sales in the United States were $US35.6 million ($NZ57.9 million). This was an increase of 8.0% on a total basis and 8.1% on a same store basis (local currency). A small downturn in Taco Bell sales arising from the ongoing unavailability of instore dining (due to local COVID-19 restrictions) was more than offset by strong Pizza Hut sales which benefitted from newly enhanced web order and delivery functions.

Year to date sales were $US68.7 million ($NZ109.7 million), an increase of 7.2% on a total basis and 8.0% on a same store basis (local currency).

Store numbers remained constant at 75 during the quarter.

Half Year Results

The company expects to release its half year trading results on 8 September 2020.

Source: Restaurant Brands New Zealand Limited


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