Restaurant Brands's 2025 full-year result has revealed a 62.6% jump in profit. Graphic / NZME
Restaurant Brands's 2025 full-year result has revealed a 62.6% jump in profit. Graphic / NZME
The New Zealand and Hawaiian arms of Restaurant Brands' KFC, Taco Bell and Pizza Hut stores have helped deliver significant growth in profit, as well as the group’s highest total group store sales.
However, the Australian and Californian divisions have been hit by cost-of-living pressures impacting their results.
In the12 months ending December 31, 2024, Restaurant Brands’ total group store sales grew 5.4% to $1.39 billion, an increase of $71.4 million.
Throughout the year, Restaurant Brands prioritised several strategic initiatives, including effective revenue management programmes, cost control measures, and operational efficiencies.
According to the business, those initiatives have led the group to report a net profit after tax (npat) of $26.5m for FY24, a 62.6% improvement from the prior year. Last year the group’s net profit fell by $15.8 million.
Restaurant Brand’s group store earnings before interest, tax and depreciation (ebitda) grew by 8.9% to $194.3m.
Restaurant Brands chairman José Parés Gutiérrez said the strategy has delivered gradual margin recovery.
Chairman José Parés said the group’s strategy has delivered gradual margin recovery while maintaining value for customers.
“These initiatives are strengthening customer loyalty, brand health, and our competitive position, while partially offsetting rising labour costs and consumer pressures,” Parés said.
“The performance of these two markets continues to offset a slower recovery in Australia and California. The group remains on track to regain FY22 group store ebitda margin levels, which serve as the baseline for future growth,” Parés said.
In the other regions, Australia’s same-store sales were down by 3.3% to $309.9 million, with a net loss after tax of $6.99m.
The business said the Australian operation “continues to face headwinds from high interest rates, inflation, and rising occupancy costs, which are straining consumer spending”.
Hawaii’s same-store sales grew by 4.2% to $280.3m, with a net profit of $19m.
California has continued its decline, with same-store sales declining by 3.9% to $177.4m, although Californian store ebitda may be of more concern, dropping 50.5% in FY24.
The California division reported a net loss after tax of $24.6m .
Restaurant Brands said that shifts in customer behaviour and the elevated cost of living reduced the average spend in California, but higher minimum wage costs also impacted results.
In total, the company has 521 stores (381 owned and 140 franchised).
Parés said he was optimistic about the group’s outlook moving into FY25.
“While the QSR (quick-service restaurant) sector continues to face challenges, our strategic investments and region-specific measures are supporting margin recovery, strengthening our brands, and positioning the group and its investors for sustainable growth.”
The directors deemed it not appropriate to declare a final dividend payment for FY24 despite the record performance, instead choosing to retain cash to support growth and maintain funding flexibility.
No guidance was provided for the group’s performance in the first weeks of FY25.
Tom Raynel is a multimedia business journalist for the Herald, covering small business and retail.
