Restaurant Brands NZ, the fast food franchise operator, posted a 24 per cent gain in full-year profit as demand at its KFC stores continued to underpin earnings.
The Auckland-based company reported a net profit of $24.3 million, or 24.89 cents a share, in the 12 months ended Feb. 28, comparedto $19.5 million, or 20.09 cents, a year earlier.
The result was within the firm's forecast $24 million to $26 million range. The shares rose 1.3 per cent to a month-high $2.40.
Still, the company warned the tough retail environment will make future gains hard-going.
"Restaurant Brands has demonstrated resilience in the recent tough economic environment, however the current trends mean taking a more cautious approach in looking at the year ahead," the company said in a statement.
"Any further increase in profitability will be very challenging."
Last month, the fast food company flagged softer fourth-quarter sales as growth in the flagship KFC brand slowed after three years of rapid gains.
Still, KFC was the stellar performer again, lifting earnings before interest, tax, depreciation and amortisation 13 per cent to $52.1 million, while perennial underperformer Pizza Hut increased EBITDA 4.6 per cent to $5.6 million amid declining sales.
Starbucks Coffee earnings jumped 27 per cent to $4.1 million, as it clamped down on costs amid a 3.8 per cent fall in sales.
The company will pay a dividend of 10 cents a share for the half, taking the full-year return to 17 cents, up 4.5 cents from a year earlier.
Restaurant Brands said growth in the KFC brand will probably slow this year to stabilise the operation, while Pizza Hut faces softer sales in the first half. Starbucks is expected to maintain steady sales growth, though margins may be squeezed by rising input costs.
