Join our daily newsletter At The Bell to receive exclusive market insights
- Fast food retailer Restaurant Brands (RBD) expects to report more than a 50 per cent year-on-year decrease in net profits after tax (NPAT) for the half-year to June 30
- The company says COVID-19 and worldwide inflationary pressures continue to affect its operations, forcing it to increase prices where it can
- As a result, the NZ-based company expects NPAT to land between $14 and $16 million, down from the $34.5 million reported for the first half of 2021
- Meanwhile, Restaurant Brands has experienced an increase in total sales for the June quarter to $309.5 million which contributed to year-to-date sales reaching $584.9 million
- RBD shares last traded at $12.47 on Monday, July 25
Restaurant Brands (RBD) expects to report more than a 50 per cent year-on-year decrease in net profits after tax (NPAT) for the half year to June 30, 2022.
The fast food giant said COVID-19 had continued to affect its operations, with high case numbers resulting in staff issues, subsequently impacting day-to-day operations as well as its contractors and suppliers.
The New Zealand-based company said it had also felt the heat of inflationary pressures around the world, causing it to experience “significant” cost inflation across all regions in which it operates. In response to this, Restaurant Brands has had to increase prices where possible.
As such, Restaurant Brands expects NPAT for the six months to June 30 to land between $14 million and $16 million — a significant decline on the $34.5 million reported for the prior corresponding period (pcp). The company noted, however, that NPAT for the first half of 2021 included a one-off income of $11.4 million from a forgiven loan.
Nevertheless, the consumer discretionary stock increased total sales by 10.2 per cent in the June quarter to $309.5 million. This year-on-year increase contributed to total year-to-date sales of $584.9 million — an 8.2 per cent rise on the pcp.
The company said the sales result reflected the inclusion of 17 new stores (taking total stores to 367) and the strengthening US dollar.
Restaurant Brands has operations in New Zealand, Australia, Hawaii, and California. New Zealand led the charge with $133.3 million in second-quarter sales and $251.8 million in year-to-date sales.
All regions experienced an increase in total year-to-date sales as well as for the June quarter with the exception of California, which experienced a slight 1.2 per cent decrease in quarterly sales to US$28.4 million (A$40.9 million).
The company plans to release its final half-year trading results on August 29, 2022.
RBD shares last traded at $12.47 on Monday, July 25.
