Restaurant Brands Posts $1.4 Billion Sales and 62.6% Profit Surge in FY24
Restaurant Brands posted a record $1.4 billion in sales for FY24, alongside a 62.6% surge in net profit, despite ongoing inflation and economic uncertainty. The company remains cautious on FY25 guidance but is focused on margin improvement and strategic growth.
- Record FY24 sales of $1.4 billion, up 5.4%
- Net profit after tax surged 62.6% to $26.5 million
- Group Store EBITDA rose 8.9% with margin improvement to 13.9%
- 27 new stores opened and 40 refurbished across key markets
- No FY25 guidance amid persistent inflation and economic uncertainty
Strong Sales Growth Despite Challenging Conditions
Restaurant Brands has reported a standout financial performance for the fiscal year 2024, achieving record group sales of $1.4 billion, a 5.4% increase compared to the previous year. This growth comes despite a backdrop of persistent inflation, rising living costs, and complex global trade tensions that have put pressure on consumer spending across its key markets.
New Zealand and Hawaii emerged as the strongest performers, delivering positive same-store sales and solid topline growth. These gains helped offset more constrained conditions in Australia and California, where economic headwinds remain pronounced.
Margin Recovery and Profit Surge
The company’s focus on margin recovery initiatives has paid dividends, with Group Store EBITDA increasing by 8.9% to $194 million and margins improving to 13.9% of sales, up from 13.5% in FY23. This improvement reflects strategic investments in digital channels, product innovation, and targeted brand marketing, which have enhanced customer engagement and operational efficiency.
Net profit after tax (NPAT) surged by an impressive 62.6% to $26.5 million, driven by effective revenue optimisation, cost control measures, and disciplined working capital management. General and administrative expenses were also reduced as a percentage of revenue, underscoring the company’s commitment to operational discipline.
Network Expansion and Capital Efficiency
Restaurant Brands expanded its footprint with 27 new store openings and 40 refurbishments during FY24, reinforcing its brand presence across New Zealand, Hawaii, Australia, and California. The company operates 521 stores in total, with a mix of company-owned and franchised locations, highlighting the strength of its franchise partnerships, particularly for Pizza Hut in New Zealand.
Capital efficiency was a key theme, with net investing cash outflows reduced by $31 million to $53 million. This prudent capital deployment enabled the payment of a special dividend of $22 million to shareholders in December 2024, reflecting confidence in the company’s financial position.
Cautious Outlook Amid Uncertainty
Looking ahead, Restaurant Brands is navigating a slower-than-expected recovery, with inflation and economic volatility continuing to cloud the near-term outlook. The Board has elected not to provide formal guidance for FY25, emphasizing the unpredictability of consumer spending patterns and broader market conditions.
Despite these challenges, the company remains focused on improving margins, deploying capital carefully, and reinforcing brand strength. With a seasoned leadership team at the helm, Restaurant Brands is investing in network expansion, digital innovation, marketing, and operational excellence to sustain momentum and drive long-term growth.
Bottom Line?
Restaurant Brands’ robust FY24 results set a strong foundation, but cautious eyes remain on how inflation and consumer trends will shape FY25.
Questions in the middle?
- How will ongoing inflation and economic pressures impact consumer spending in key markets?
- What specific strategies will Restaurant Brands deploy to sustain margin improvements in FY25?
- Will the company accelerate or moderate its store expansion plans amid economic uncertainty?
