New Zealand company, Restaurant Brands, is forecasting large sales as it expands into Australia and Hawaii. The fast food retailer also seeks dual-listing in the Australian Stock Exchange.
With such a large foothold in New Zealand, it is no wonder that Restaurant Brands is forecasting sales above $700 million in the 2018 financial year.
The expansion included operations in Australia and Hawaii, adding another 129 the brands to the group’s total ownership of 212.
Sales for the year ended Feb. 27, 2017 were $497.2 million, including $400 million in New Zealand sales and 10 months' trading from the Australian business.
Now, the group have announced it will seek foreign-exempt listing on the Australian Stock Exchange (ASX) this month following the three-way spilt of its corporate structure.
The company now reports to shareholders from three geographically separate operating divisions: New Zealand, where it runs KFC, Pizza Hut, Carl’s Jr and Starbucks Coffee; Hawaii, where it operates 82 Taco Bell and Pizza Hut stores; and Australia where it operates 42 KFC outlets in New South Wales.
Russel Creedy, CEO, says the group are well on their way to a billion-dollar revenue target.
"The impact of sales from the Hawaiian acquisition will only be felt in the current financial year. With the benefit of virtually a full year’s trading for the Hawaiian and Australian operations, together with sound growth in New Zealand, we expect total sales for the current financial year to be comfortably more than $700 million."
The company’s biggest revenue comes from its KFC stores, earning up to $61.4 million in the last finical year.
Restaurant Brands is in negotiations to renew its franchise agreements for Starbucks, which begin to expire next year, while Carl's Jr margins continued to improve, Creedy said.
Creedy said the company is "coming to grips" with the Hawaiian business but sales and earnings in the past three months had been sound, and it plans to build, relocate or renovate five stores over the next 12 months.
The shares rose 0.7 percent to $6, and have gained 17 percent over the past year.
Restaurant Brands also reported its fourth quarter sales in March. They rose 37 percent to $121.6 million, bolstered by gains from its Australian KFC stores. The quarterly gain lifted annual sales 28 percent to $497.2 million.