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.
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.
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.
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
Comments from our readers
No comments yet
Add your comment:
Further Contract Win Strengthens Scott Technology’s Position In Mining Sector
China’s Assertiveness Is Becoming a Problem for Its Friends, Too
New Talisman - Chairman’s Address to AGM 2020 August 6, 2020
T&G reports its 2020 Interim Results
Gold price hits $2,000 for first time on Covid
TruScreen strengthens its market presence in central and eastern Europe
Refining NZ announces non-cash impairment
Ryman Healthcare COVID-19 update Victoria
Talisman Quarterly Activities Report to 30 June 2020
General Capital gives notice of Annual Meeting