Restaurant Brands Posts 9% Store EBITDA Growth with 40% Digital Sales Share
Restaurant Brands posted record FY24 sales and margin improvements, powered by strong growth in New Zealand and digital innovation, while facing ongoing challenges in Australia and California.
- Record group sales serving over 61 million customers
- New Zealand sales up 9.5% with 29% EBITDA growth
- Digital sales hit 40% of transactions, growing 23%
- Australia and California markets faced sales and margin declines
- Group Store EBITDA improved by 9% despite inflationary pressures
FY24 Highlights and Strategic Progress
Restaurant Brands has delivered a robust FY24 performance, marked by record sales and operational improvements despite a challenging economic backdrop. Serving more than 61 million customers across New Zealand, Australia, Hawaii, and California, the group expanded its store network by 5% and accelerated digital adoption, with digital sales now accounting for 40% of all transactions.
The company’s focus on modernising its business through digital-first store formats, enhanced customer experiences, and streamlined operations has begun to pay dividends. Store EBITDA rose 9% overall, reflecting successful margin management and cost control efforts amid inflationary pressures.
Market-by-Market Performance
New Zealand emerged as the standout market, with total sales increasing 9.5% to $626 million and Store EBITDA surging 29% to $104 million. This growth was driven by strong same-store sales, effective marketing, and product innovation, with KFC and Pizza Hut leading the charge and Taco Bell gaining traction in the quick service sector.
Conversely, Australia faced a tougher environment. Sales dipped slightly by 0.8% to A$284 million, and Store EBITDA declined from A$35 million to A$32 million, pressured by high inflation, energy costs, and subdued consumer spending. Despite these headwinds, the company remains confident in its strategy to revive momentum, particularly for Taco Bell.
Hawaii continued its steady growth trajectory, with sales up 6.3% to US$170 million and Store EBITDA rising to US$29 million. Inflationary pressures slightly compressed margins, but ongoing marketing and menu enhancements underpin optimism for sustained recovery.
California remains the most challenging market, with sales down 3.2% and Store EBITDA halving to US$5 million. The impact of a 29% minimum wage increase and high operating costs weighed heavily on profitability. The group is focusing on store optimisation, marketing initiatives, and cost efficiencies to navigate this difficult environment.
Innovation and Community Engagement
Beyond financials, Restaurant Brands is pushing creative boundaries to deepen customer connections. Notable initiatives include KFC’s Fish & Chip Shop Pop-Up supporting Surf Life Saving NZ, Pizza Hut’s nostalgic 50th Anniversary Pop-Up Hut, and the innovative KFC Gravy Train activation. These efforts highlight the group’s commitment to brand relevance and community engagement.
Looking Ahead
While cautious about macroeconomic uncertainties and a slower-than-expected recovery, Restaurant Brands is optimistic about its path forward. The refreshed group strategy prioritises profitable growth, customer-centric innovation, operational excellence, and team development. The ambitious target of $2 billion in group sales underscores confidence in the company’s ability to adapt and thrive.
Bottom Line?
Restaurant Brands’ FY24 momentum sets a solid foundation, but navigating economic headwinds will test its resilience in FY25.
Questions in the middle?
- How will Restaurant Brands accelerate recovery in Australia and California amid ongoing cost pressures?
- What impact will further digital innovation have on customer loyalty and sales growth?
- Can the group sustain margin improvements while expanding its store network and investing in brand activations?
