"While some of this store development and acquisition growth can be funded from increased borrowings, directors believe that it is in the best interests of the group to retain cash in order to provide funding flexibility," it said. "Directors have therefore resolved not to pay a final dividend for the FY19 year."
Over the next five years, Restaurant Brands plans to open 30 new KFC stores, 60 Taco Bell stores and refurbish 50-60 KFC stores across Australasia, build and rebuild 10-12 Taco Bells in Hawaii, buy 10-40 KFC stores in Australia, and pursue 2-3 KFC or Taco Bell acquisitions on the US mainland.
While the bulk of Restaurant Brands shareholders will have pocketed $9.45 a share in the scaled takeover bid, today's decision by the board means investors won't receive any dividends this year after directors put off paying an interim dividend due to Finaccess Capital's offer.
It paid 28 cents per share for the 2018 financial year and, while chair Ted van Arkel told shareholders at last year's annual meeting that the board will lift dividends in line with higher earnings, those returns will always be subject to capital spending plans.
The Mexican firm would prefer to use equity funding as a last resort for that capital programme.
Restaurant Brands spent $36.9m buying intangibles, property, plant and equipment in the year, and raised $10.2m from the sale of assets.
The company's KFC New Zealand unit lifted earnings before interest, tax, depreciation and amortisation 5.9 per cent to $70.4m, maintaining strong margins despite cost pressures, while its Pizza Hut earnings dropped 38 per cent to $2m as rising ingredients and labour costs squeezed margins, and it owned fewer stores - it now owns 30, down from 36 a year ago.
Carl's Jr earnings slumped 53 per cent to $900,000 on falling sales, and rising labour and ingredients costs, and Restaurant Brands booked a $3.5m impairment charge on the value of the burger chain.
Its Australian KFC stores lifted earnings 34 per cent to A$27m ($28.6m), while its Hawaiian Taco Bell unit lifted earnings 2.9 per cent to US$14.3m ($21.1m) and its Hawaiian Pizza Hut ebitda shrank 44 per cent to US$1.9m, reflecting marketing costs and higher ingredients and wages costs. lt has 44 Pizza Hut stores in Hawaii.