Retail Food Group Posts $254.6M Sales with 0.2% Same-Store Growth

Resilient Sales Amidst Challenging Conditions

Retail Food Group Limited (ASX: RFG) has reported a steady performance in the first half of FY26, with domestic network sales reaching $254.6 million. Despite a slight 1% decline compared to the prior corresponding period, the company recorded a modest 0.2% growth in same-store sales, highlighting the resilience of its core brands such as Crust and Beefy’s. This performance comes against a backdrop of difficult trading conditions, including the closure of non-core brand outlets and a strategic reset of company-owned stores.

Profitability Pressures and Underlying EBITDA

Underlying EBITDA fell by 43.1% to $9.2 million, reflecting a combination of factors including slower-than-expected contributions from new Beefy’s outlets, the absence of one-off insurance proceeds received in the prior year, and lower coffee margins due to supply chain delays. Despite this decline, the result remained within the company’s guidance range, signalling management’s cautious but confident outlook. Statutory net profit after tax also declined sharply by 72.9% to $2.0 million.

Strategic Transformation and Store Reset

RFG is actively pursuing a transformation program aimed at reducing costs, improving franchise partner earnings, and increasing store retention. A key element of this strategy is the company store reset, with 70% of targeted transitions, exits, or closures either completed or agreed upon. This initiative is expected to deliver over $5 million in cash flow improvements in the medium term. Operational improvements, enhanced procurement, and a back-to-basics marketing approach are also central to driving future network sales growth and profitability.

Balance Sheet Strengthened Through Refinancing

In February 2026, RFG successfully refinanced its senior debt facility, securing a new $41.2 million facility with major shareholder Washington H Soul Pattinson. This refinancing not only replaces existing debt but also provides an additional $7.5 million in drawdown capacity, offering the company balance sheet stability and funding certainty to support its strategic priorities, including the planned launch of Firehouse Subs in FY26.

Outlook and Market Challenges

Early trading in 2026 has shown some softness, with core brand network sales down 5.5% in the first seven weeks, largely due to outlet closures. However, same-store sales remained relatively stable, declining only 0.1%, underscoring the underlying strength of RFG’s brands. The company maintains its full-year underlying EBITDA guidance of $20.0 to $24.0 million, anticipating improvements in the second half driven by cost savings and operational enhancements.