Covid bounceback: Restaurant Brands sales up 32pc in Q3

Restaurant Brands sales bounced back strongly in the third quarter. Graphic / NZME, Dean Purcell, Getty

NZX-listed Restaurant Brands' sales for the third quarter shot up by 32 per cent over the same period last year as the business recovered from Covid-19 restrictions.

Total sales for the quarter came to $322 million.

The company said worldwide inflationary pressures continued from the last quarter, and it was still experiencing significant cost inflation across all regions.

Restaurant Brands, about three quarters-owned by Mexican investor Finaccess Capital SA de C, said it continued to implement price increases where possible in response to increased costs.

The company, which has 372 KFC Taco Bell Hawaii, Pizza Hut New Zealand and Carl's Jr stores, said its total year-to-date sales reached $907.1m, up 15.7 per cent on the prior year.

Total sales were supported by the inclusion of 20 new stores, lower levels of Covid-19 disruption and the strengthening US and Australian dollars over the prior year.

Third quarter sales for New Zealand were $137.6m, up 43.9 per cent in total and 2.2 per cent on a same-store basis.

Prior year trading was impacted by Government-mandated trading restrictions.

Adjusting the prior year sales to account for an estimated $26m of sales lost due to Covid-19 restrictions, sales increased by 13.1 per cent during the quarter.

All brands showed sales growth, with staff isolation requirements reducing as Covid-19 restrictions continue to be eased and overall case numbers drop.

Total year-to-date sales were $389.4m, an increase of 16.3 per cent on the prior year and 1.6 per cent on a same store basis.

Store numbers increased by two during the quarter to 140 stores, following the opening of new Taco Bell stores in Botany, Auckland and near Christchurch Airport.

Australia's sales for the third quarter were $A65.5m ($73.1m), an increase of 23.6 per cent in total.

Total sales growth over the prior year is distorted by the impact of Covid-19 Government restrictions imposed during 2021.

Same-store sales were up 10.4 per cent (local currency). Mall and in-line inner city store sales continued to recover towards pre-Covid-19 sales levels.

Sales for the third quarter in Hawaii were US$39.9m ($65.1m), up 7.7 per cent.

California's Q3 sales were US$28.5m ($46.4m), up 3.0 per cent in total but down 3.3 per cent on a same store basis.