RBD - Restaurant Brands

[Rawz]

RBD down again today.

10% off its 52 week high.

Thought RBD would be a fairly good stock to hold during inflationary times or hard times? Bucket of KFC at home instead of taking the family to a restaurant

[BlackPeter]

RBD down again today.

10% off its 52 week high.

Thought RBD would be a fairly good stock to hold during inflationary times or hard times? Bucket of KFC at home instead of taking the family to a restaurant

Sure - some people will always pay money to eat lots of unhealthy fatty food, but then - did you check what growth rates are already baked into the current SP?

Maybe markets realizing that the pool for new customers might getting smaller? Existing customer pool might shrink as well - if you look at their target market - that's the people most likely to be severely impacted by Covid (overweight, unfit, unhealthy). Lower growth rates equal lower SP for a "growth" company. Easy as that.

[LaserEyeKiwi]

RBD does have a rather high P/E ratio, sort of odd for the fundamentals. I like the company and it’s direction, but seems a tad overvalued.

[winner69]

RBD does have a rather high P/E ratio, sort of odd for the fundamentals. I like the company and it’s direction, but seems a tad overvalued.

RBD has always been ‘a tad overvalued’ ……even when I bought heaps sub $1 some 12 or so years ago ……still haven’t closed that trade out yet

But never topped up because it was ‘a tad overvalued’ when I thought I might do so.

Percentage wise I’ve made more out of greasy chicken than retirement villages …always laughs at that when I remember that

[BlackPeter]

...

Percentage wise I’ve made more out of greasy chicken than retirement villages …always laughs at that when I remember that

Sure, but possibly reflects more on the qualities of the trader rather than the qualities of the respective stock or the qualities of the product they are selling?

One of my best returns came from Wynyard shares ... but I would not draw any particular conclusions from that on the quality of the company or its products ;

[LaserEyeKiwi]

RBD has always been ‘a tad overvalued’ ……even when I bought heaps sub $1 some 12 or so years ago ……still haven’t closed that trade out yet

But never topped up because it was ‘a tad overvalued’ when I thought I might do so.

Percentage wise I’ve made more out of greasy chicken than retirement villages …always laughs at that when I remember that

Well I guess with a well run company and a solid growth history, an argument can indeed be made that its worth paying a premium for.

[Sideshow Bob]

Restaurant Brands Q4 Sales Announcement - NZX, New Zealand’s Exchange

Restaurant Brands’ total sales for the year ended 31 December 2021 were $1,068.2 million, an increase of $175.9 million (19.7%) from 2020. Approximately $100 million of the increase arose from an additional eight months trading this year from the California acquisition. Same store sales were strong despite the adverse impact of the continued COVID-19 crisis.

Restaurant Brands responded strongly to COVID-19’s continuing impact on the business in all markets, despite the challenging trading environment, government-mandated restrictions and changes in consumer behaviour. As a result the company achieved its long-standing goal of $1 billion in annual sales, with solid foundations for further sales growth in all four regions in place.

For the fourth quarter of the financial year (three months to 31 December 2021) total sales were $284.0 million, an increase of $14.9 million (5.5%) on the equivalent period last year. All regions had positive same store growth despite the ongoing impact of COVID-19.

Company owned store numbers were up by 11 on the equivalent period last year to 359, primarily from the acquisition of five KFC stores in Sydney earlier in the year and the ongoing builds of new Taco Bell stores in Australia and New Zealand. This was partly offset by the sale of several New Zealand Pizza Hut stores to independent franchisees.

New Zealand
Full year sales for New Zealand were $461.1 million, an increase of 12.4%, primarily from strong same store sales growth of 9.1%. It is estimated that the Government-mandated full store closures resulted in lost sales of $26 million in 2021 and $40 million in 2020.
Fourth quarter total sales for New Zealand were $126.2 million, an increase of 5.3% on the equivalent period last year, with Carl’s Jr. and Pizza Hut performing very strongly.

Store numbers increased by four during the quarter to 137, with the opening of three new Taco Bell stores (Dunedin, Rotorua and Sylvia Park – Auckland) and a new KFC store also in Sylvia Park. In addition two Carl’s Jr. stores were converted to a KFC (Avondale) and a Taco Bell (Auckland Airport).

Australia
Full year sales for Australia were $A230.0 million ($NZ244.1 million), an increase of 13.6% in total, primarily due to new stores and an increase of 1.4% on a same store basis (local currency).

Fourth quarter sales for Australia were $A62.2 million ($NZ65.5 million), an increase of 12.9%. On a same store basis sales were up 1.3% (local currency), with mall and in-line city stores continuing to be adversely impacted by COVID-19.

Store numbers increased by two during the quarter to 79, with the opening of two Taco Bell stores in Dee Why and Orange.
 
Hawaii
Full year sales in Hawaii were $US146.3 million ($NZ206.5 million), an increase of 5.0% on a total basis and 9.1% on a same store basis (local currency). Sales in $NZ terms are lower due to the appreciation of the New Zealand dollar against the US dollar.

Fourth quarter sales were $US36.6 million ($NZ52.7 million). This was an increase of 7.9% on a same store basis (local currency). Taco Bell showed strong growth from the ongoing removal of COVID-19 restrictions and Pizza Hut continues to respond well to the increased demand for home delivery.
Store numbers remained unchanged during the quarter at 73.

California
California full year sales were $US110.3 million ($NZ156.5 million) which were above expectations at acquisition. Prior year to date comparisons are for four months of trading following the acquisition of the California business in September 2020.

Fourth quarter sales were $US27.4 million ($NZ39.5 million), an increase of 2.5% on the on the equivalent period last year in total and up 2.2% on a same store basis (local currency).

Store numbers during the quarter increased by one to 70 with the acquisition of a KFC store in central Los Angeles from an independent franchisee.

Annual Trading Results
The company will release its annual trading results for the year ended 31 December 2021 on 28 February 2022.

[winner69]

Cool graphic in BusinessDesk showing how badly NZX50 stocks have done in January ... plots each stock

Restuarant Brands is only one that's UP .... isn't that cool .... greasy chicken wins again

https://businessdesk.co.nz/article/m...22-performance

[Sideshow Bob]

Still going strong.....


Restaurant Brands Announces Annual Profit Result - NZX, New Zealand’s Exchange

$NZm Dec 2021 Dec 2020 Change ($) Change (%)

Total Sales 1,068.2 892.4 +175.8 +19.7

Net Profit After Tax 51.9 30.6 +21.3 +69.3

Key Points
• Our billion dollar sales target has been achieved with total sales for the year of $1,068.2 million, up against the previous year, with full year positive same store sales growth across all four of our operating divisions.
• Reported net profit after tax of $51.9 million for the year was up $21.3 million on the last year, despite the ongoing adverse impact of COVID-19.
• Combined store EBITDA (pre NZ IFRS 16) for the period was $172.7 million, up 17.2% on the previous year.
• Total store numbers increased by 11 to 359 including the acquisition of five stores in Australia and two stores in California.
• The Taco Bell brand, launched in New Zealand and Australia (New South Wales) in late 2019, has continued to grow with 18 stores now successfully operating in these markets.
• Directors have declared a dividend of 32.0 cents per share, payable on 22 April to all shareholders on the register as at 8 April. The dividend will be paid fully imputed to NZ tax resident holders.

[LaserEyeKiwi]

Would love to invest in this company, but the valuation multiple is just too damn high. Congrats to anyone who managed to buy on the 2020 Dip!