Record sales for Restaurant Brands

28th February 2025 By Bridget O'Connell | bridget@propertyticker.co.nz | @propertyticker

Restaurant Brands has reported record sales for the second year running, but this time it managed to protect its bottom line with a string of strategic initiatives.

The quick service restaurant group posted total group store sales of $1.4bn in the year to 31 December 2024, up 5.4%, and a new company record across its KFC, Taco Bell, Pizza Hut, and Carl’s Jr stores in New Zealand, Australia, California and Hawaii.

Where it made more ground was net profit after tax, posting a 62.6% uplift to $26.5m, which it said was driven by the implementation of strategic initiatives, including effective revenue management programmes, cost control measures, and operational efficiencies.

Chair José Parés said the group’s strategy continued to deliver gradual margin recovery while maintaining value for customers through both pricing and experience, reinforcing its platform for long-term growth.

“These initiatives are strengthening customer loyalty, brand health, and our competitive position, while partially offsetting rising labour costs and consumer pressures,” Parés said. 

Group store EBITDA reached $194.3m, an 8.9% increase on the prior year. Margins improved to 13.9% of sales, up from 13.5% in FY23, driven by the group’s margin recovery programme. 

Parés noted that New Zealand and Hawaii delivered solid growth in 2024. 

“The performance of these two markets continues to offset a slower recovery in Australia and California. The group remains on track to regain FY22 group store EBITDA margin levels, which serve as the baseline for future growth.” 

In New Zealand, same store sales were up 4.6%, with strong transaction growth year-on-year. Store EBITDA was $104m, a 29.2% increase on FY23, and store EBITDA margin was 16.6%, an increase on the 14.1% in FY23. 

KFC achieved record sales, driven by innovative new products and viral marketing, while Taco Bell saw growth in same store sales, transactions, and new store openings. 

Digital sales continued to rise across all brands. 

The New Zealand division added eight new stores in FY24, reaching 155 Restaurant Brands-owned locations, while the franchise network also grew, with 18 new stores opened by independent operators.

At the year end, Restaurant Brands had 521 stores (381 owned and 140 franchised) including 85 stores in Australia, 70 in Hawaii, and 71 in California. The store portfolio includes 141 Pizza Hut stores in New Zealand, of which 135 are owned and operated by independent franchisees.

Restaurant Brands chief executive Arif Khan said during the period significant advances were made against the group’s growth strategy, alongside ongoing margin and profit recovery.

“Investments in technology and digital channels are increasing digital sales and customer access points. We’re delivering enhanced, value-led marketing programmes, product and menu innovations and new store models to align with evolving customer preferences.” 

Parés added that the company remained optimistic about its outlook.

“While the QSR sector continues to face challenges, our strategic investments and region-specific measures are supporting margin recovery, strengthening our brands, and positioning the group and its investors for sustainable growth.”