Restaurant Brands has posted an almost 20% improvement in full-year profit to $23.8 million, but costs associated with the establishment of Carl's Jr have been problematic.
Restaurant Brands operates KFC (91), Pizza Hut (46), coffee chain Starbucks (26) and Carl's Jr (18), the latter including three new stores and the purchase of seven others for $10.3 million during the 53 weeks to March reporting period.
Total revenue from the 181 outlets rose 9.2% to $359.5 million, earnings before interest, tax, depreciation and amortisation was up 15% to $61.5 million, while after-tax profit was up 19.4% to $23.8 million.
Chief executive Russel Creedy said in a statement that while the profit was the company's second-best year, margins across all brands had been ''hard won'', given pressure from competitors.
While KFC, the company's largest brand, continued a strong run with its sales up 23.5% to $265 million, the ''major focus'' for the new financial year was building momentum and profitability of Carl's Jr, more local food sourcing, amd opening outlets in ''unpenetrated markets'', he said.
Forsyth Barr broker Suzanne Kinnaird said the overall Restaurant Brands result was in line with expectations, with ''strong'' cashflows up 14% at $36.6 million.
Its anchor chain, KFC, was a strong result, but the Carl's result of $20.1 million revenue was ''disappointing'', Ms Kinnaird said, noting delays in local sourcing and supply chain disruptions.
Gains from the ongoing sales of Pizza Hut outlets, to five independent franchisees during the past year, were offset by the $10.3 million Carl's Jr acquisition and costs to build three new Carl's.
Restaurant Brands' dividend rose from 16.5c a share a year earlier to 19c. Its shares were up 3c to $4.11 following the announcement.
