By David Winning
SYDNEY–Restaurant Brands NZ said its annual net profit is likely to halve this fiscal year as it battles inflationary pressures including higher ingredient and wage costs.
Updating guidance for the 12 months through December, Restaurant Brands NZ said it now expects a net profit of between 12 million New Zealand dollars (US$7.3 million) and NZ$16 million. That would represent a sharp fall on the NZ$32.1 million achieved in the 2022 fiscal year.
Restaurant Brands NZ said its performance continues to be hurt by “continued input cost increases in the New Zealand business which have exceeded earlier expectations of scope and quantum.” It also cited lower-than-expected sales growth in California and Hawaii.
“Given these factors will continue for some time, at a level far greater than anticipated, it has become apparent that recovery in the second half is also going to be weaker than expected,” Restaurant Brands NZ said.
Compounding matters, Restaurant Brands NZ said it hasn’t been able to raise prices to fully offset cost increases.
In its fiscal second quarter through June, Restaurant Brands NZ reported total sales of NZ$331.6 million. That was up 7.1% on a year earlier and reflected its post-pandemic recovery and price increases implemented across all markets, the company said.
Write to David Winning at [email protected]
Read the full article here
