How Did Restaurant Brands NZ Achieve Record Sales Amid Rising Costs?

Record Sales Growth Despite Challenging Conditions

Restaurant Brands New Zealand Limited (RBD) has reported a new milestone with total group store sales reaching NZD 703.2 million for the six months ended 30 June 2025, marking a 2.3% increase over the same period last year. This growth was largely driven by a robust performance in Hawaii, where Taco Bell’s strong marketing and pricing strategies helped boost same-store sales by 5.5%, as well as new store openings in New Zealand.

Despite this top-line success, the company faced persistent macroeconomic headwinds including inflationary pressures, elevated labour and energy costs, and increased aggregator fees. These factors contributed to a 5.6% decline in net profit after tax (NPAT), which fell to NZD 11.9 million, and a 4.1% drop in Group Store EBITDA to NZD 90.7 million.

Segment Performance Highlights

In New Zealand, store sales remained flat at NZD 309.7 million, supported by six new KFC store openings since the second half of 2024. However, same-store sales declined by 3.1%, reflecting ongoing consumer spending restraint in key urban centres like Auckland and Wellington. Store EBITDA in New Zealand decreased by 4.7%, impacted by higher labour and aggregator costs despite cost-saving initiatives.

Australia’s operations saw a slight dip in store sales by 1.5% to AUD 137.5 million, with same-store sales down 1.0%. The division experienced margin pressure from rising operational costs but benefited from early signs of recovery following interest rate cuts and successful KFC brand campaigns.

Hawaii delivered the strongest growth, with store sales up 5.3% to USD 88.8 million, driven by Taco Bell’s continued momentum. California faced a 2.1% decline in store sales to USD 52.5 million, partly due to store closures and cost-of-living pressures, although same-store sales rose 1.9% thanks to targeted marketing and pricing strategies.

Strategic Focus and Outlook

Chairman José Parés highlighted the resilience of RBD’s brands and the agility of its teams in navigating a tough economic environment. The company is prioritising margin recovery through operational efficiencies, pricing programmes, and digital enhancements. CEO Arif Khan emphasised the importance of affordability and value-for-money in consumer decisions, noting ongoing menu evolution, digital channel expansion, and store format upgrades.

RBD’s balance sheet remains strong, with bank debt reduced to NZD 238.1 million and a comfortable net debt to EBITDA ratio of 1.6, 1. The Group continues to invest selectively in store development, with 16 net new stores added since 1H 2024, bringing the total to 522 globally.

Looking ahead, management expects momentum to build through 2025 as inflation stabilises and monetary policy potentially eases. While cost pressures persist, the company remains confident in its pathway to achieve its $2 billion store sales target and deliver long-term value to shareholders.