New Risk • Sep 30
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of New Zealander stocks, typically moving 18% a week. This is considered a major risk. Share price volatility increases the risk of potential losses in the short-term as the stock tends to have larger drops in price more frequently than other stocks. It may also indicate the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. Currently, the following risks have been identified for the company: Major Risks Interest payments are not well covered by earnings (1.7x net interest cover). Share price has been highly volatile over the past 3 months (18% average weekly change). Announcement • Sep 30
Finaccess Capital proposed to acquire remaining 24.98% stake in Restaurant Brands New Zealand Limited (NZSE:RBD) from Accident Compensation Corporation and others for approximately NZD 160 million. Finaccess Capital proposed to acquire remaining 24.98% stake in Restaurant Brands New Zealand Limited (NZSE:RBD) from Accident Compensation Corporation and others for approximately NZD 160 million on September 30, 2025. A cash consideration valued at NZD 5.05 per share will be paid by Finaccess Capital. The Offeror confirms that resources will be available to it sufficient to meet the consideration to be provided on full acceptance of the Offer and to pay any debts incurred in connection with the Offer. Computershare Investor Services Limited act as registrar and Bell Gully act as legal advisor for Restaurant Brands New Zealand Limited. Major Estimate Revision • Sep 02
Consensus EPS estimates fall by 21% The consensus outlook for fiscal year 2025 has been updated. 2025 EPS estimate fell from NZ$0.296 to NZ$0.234 per share. Revenue forecast steady at NZ$1.52b. Net income forecast to grow 28% next year vs 39% growth forecast for Hospitality industry in New Zealand. Consensus price target down from NZ$4.50 to NZ$3.93. Share price was steady at NZ$2.85 over the past week. Price Target Changed • Aug 29
Price target decreased by 13% to NZ$3.93 Down from NZ$4.50, the current price target is an average from 2 analysts. New target price is 37% above last closing price of NZ$2.87. Stock is down 17% over the past year. The company is forecast to post earnings per share of NZ$0.23 for next year compared to NZ$0.21 last year. Reported Earnings • Aug 27
First half 2025 earnings released: EPS: NZ$0.096 (vs NZ$0.10 in 1H 2024) First half 2025 results: EPS: NZ$0.096 (down from NZ$0.10 in 1H 2024). Revenue: NZ$743.3m (up 2.5% from 1H 2024). Net income: NZ$11.9m (down 5.3% from 1H 2024). Profit margin: 1.6% (down from 1.7% in 1H 2024). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 3.9% p.a. on average during the next 3 years, compared to a 4.6% growth forecast for the Hospitality industry in Oceania. Over the last 3 years on average, earnings per share has fallen by 6% per year but the company’s share price has fallen by 29% per year, which means it is performing significantly worse than earnings. Announcement • Mar 24
Restaurant Brands New Zealand Limited, Annual General Meeting, May 23, 2025 Restaurant Brands New Zealand Limited, Annual General Meeting, May 23, 2025. Reported Earnings • Feb 28
Full year 2024 earnings: EPS exceeds analyst expectations while revenues lag behind Full year 2024 results: EPS: NZ$0.21 (up from NZ$0.13 in FY 2023). Revenue: NZ$1.47b (up 5.7% from FY 2023). Net income: NZ$26.5m (up 63% from FY 2023). Profit margin: 1.8% (up from 1.2% in FY 2023). The increase in margin was driven by higher revenue. Revenue missed analyst estimates by 3.9%. Earnings per share (EPS) exceeded analyst estimates by 3.2%. Revenue is forecast to grow 5.1% p.a. on average during the next 3 years, compared to a 5.2% growth forecast for the Hospitality industry in Oceania. Over the last 3 years on average, earnings per share has fallen by 25% per year but the company’s share price has fallen by 37% per year, which means it is performing significantly worse than earnings. Valuation Update With 7 Day Price Move • Dec 10
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to NZ$3.95, the stock trades at a forward P/E ratio of 17x. Average forward P/E is 18x in the Hospitality industry in Oceania. Total loss to shareholders of 73% over the past three years. Price Target Changed • Sep 11
Price target decreased by 27% to NZ$4.18 Down from NZ$5.72, the current price target is an average from 2 analysts. New target price is 10% above last closing price of NZ$3.78. Stock is down 11% over the past year. The company is forecast to post earnings per share of NZ$0.21 for next year compared to NZ$0.13 last year. Valuation Update With 7 Day Price Move • Sep 04
Investor sentiment improves as stock rises 20% After last week's 20% share price gain to NZ$3.70, the stock trades at a forward P/E ratio of 16x. Average forward P/E is 17x in the Hospitality industry in Oceania. Total loss to shareholders of 75% over the past three years. Reported Earnings • Aug 31
First half 2024 earnings released: EPS: NZ$0.10 (vs NZ$0.017 in 1H 2023) First half 2024 results: EPS: NZ$0.10 (up from NZ$0.017 in 1H 2023). Revenue: NZ$724.9m (up 7.7% from 1H 2023). Net income: NZ$12.6m (up 476% from 1H 2023). Profit margin: 1.7% (up from 0.3% in 1H 2023). The increase in margin was driven by higher revenue. Revenue is forecast to grow 2.3% p.a. on average during the next 3 years, compared to a 6.2% growth forecast for the Hospitality industry in Oceania. Over the last 3 years on average, earnings per share has fallen by 38% per year whereas the company’s share price has fallen by 39% per year. Valuation Update With 7 Day Price Move • Jul 19
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to NZ$3.00, the stock trades at a forward P/E ratio of 15x. Average forward P/E is 14x in the Hospitality industry in Oceania. Total loss to shareholders of 80% over the past three years. Major Estimate Revision • May 03
Consensus EPS estimates increase by 30% The consensus outlook for fiscal year 2024 has been updated. 2024 EPS estimate increased from NZ$0.158 to NZ$0.206. Revenue forecast steady at NZ$1.44b. Net income forecast to grow 58% next year vs 70% growth forecast for Hospitality industry in New Zealand. Consensus price target of NZ$5.72 unchanged from last update. Share price was steady at NZ$3.50 over the past week. New Risk • May 01
New major risk - Revenue and earnings growth Earnings have declined by 9.8% per year over the past 5 years. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risks Interest payments are not well covered by earnings (1.5x net interest cover). Earnings have declined by 9.8% per year over the past 5 years. Minor Risks Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (1.2% net profit margin). New Risk • Feb 29
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 22% of the size of the rest of the company's trailing 12-month earnings before tax. This is considered a minor risk. One-off items are incomes or expenses that the company does not expect to repeat in future periods. Examples include profits from the sale of a business or expenses from a restructuring or legal settlements. If the company's reported statutory earnings include a large proportion of one-off items it means they may be an unreliable indicator of its true business performance as the earnings were skewed by these incomes or expenses. Currently, the following risks have been identified for the company: Major Risk Interest payments are not well covered by earnings (1.5x net interest cover). Minor Risks Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (1.2% net profit margin). Reported Earnings • Feb 29
Full year 2023 earnings: EPS exceeds analyst expectations while revenues lag behind Full year 2023 results: EPS: NZ$0.13 (down from NZ$0.26 in FY 2022). Revenue: NZ$1.40b (up 7.5% from FY 2022). Net income: NZ$16.3m (down 49% from FY 2022). Profit margin: 1.2% (down from 2.5% in FY 2022). Revenue missed analyst estimates by 4.7%. Earnings per share (EPS) exceeded analyst estimates by 19%. Revenue is forecast to grow 4.1% p.a. on average during the next 3 years, compared to a 7.1% growth forecast for the Hospitality industry in Oceania. Over the last 3 years on average, earnings per share has fallen by 31% per year whereas the company’s share price has fallen by 35% per year. Price Target Changed • Feb 28
Price target decreased by 13% to NZ$5.72 Down from NZ$6.59, the current price target is an average from 2 analysts. New target price is 68% above last closing price of NZ$3.40. Stock is down 45% over the past year. The company is forecast to post earnings per share of NZ$0.11 for next year compared to NZ$0.26 last year. Announcement • Feb 26
Restaurant Brands New Zealand Limited, Annual General Meeting, May 24, 2024 Restaurant Brands New Zealand Limited, Annual General Meeting, May 24, 2024. Price Target Changed • Feb 14
Price target increased by 17% to NZ$6.59 Up from NZ$5.64, the current price target is an average from 2 analysts. New target price is 91% above last closing price of NZ$3.45. Stock is down 46% over the past year. The company is forecast to post earnings per share of NZ$0.11 for next year compared to NZ$0.26 last year. Major Estimate Revision • Jan 27
Consensus EPS estimates increase by 11% The consensus outlook for fiscal year 2023 has been updated. 2023 EPS estimate increased from NZ$0.091 to NZ$0.101. Revenue forecast unchanged at NZ$1.39b. Net income forecast to shrink 13% next year vs 82% growth forecast for Hospitality industry in New Zealand . Consensus price target up from NZ$5.64 to NZ$5.78. Share price rose 6.5% to NZ$4.10 over the past week. Announcement • Jan 25
Restaurant Brands New Zealand Limited Provides Earnings Guidance for the Year Ended December 31, 2023 Restaurant Brands New Zealand Limited provided earnings guidance for the year ended December 31, 2023. Despite the significant inflationary pressures faced by the Group in all markets, based on preliminary unaudited trading results, the company expects to report full year NPAT for the 2023 financial year within the provided guidance range of $12 million to $16 million. Major Estimate Revision • Sep 03
Consensus EPS estimates fall by 19% The consensus outlook for fiscal year 2023 has been updated. 2023 EPS estimate fell from NZ$0.104 to NZ$0.083 per share. Revenue forecast steady at NZ$1.38b. Net income forecast to shrink 26% next year vs 88% growth forecast for Hospitality industry in New Zealand . Consensus price target down from NZ$6.49 to NZ$5.93. Share price fell 2.4% to NZ$4.45 over the past week. Announcement • Sep 01
Restaurant Brands New Zealand Limited Announces Appointment of Arif Khan as Group Chief Executive Officer, Effective 1 September 2023 Restaurant Brands New Zealand Limited (RBD) has announced the permanent appointment of Arif Khan to the role of Group Chief Executive Officer (CEO), effective 1 September 2023. Arif has been Acting Group CEO since 1 April 2023. Arif brings extensive working knowledge of RBD's operations and strategy to the role, having spent several years at RBD in his early career in a management role. He returned to lead the RBD New Zealand business as CEO in 2018, and held the role of Global Chief Operating Officer from November 2022 until April 2023. His extensive career spans more than 25 years in the hospitality and Quick Service Restaurant (QSR) sectors across both Franchisor and Master Franchisee networks. Price Target Changed • Aug 31
Price target decreased by 8.6% to NZ$5.93 Down from NZ$6.49, the current price target is an average from 3 analysts. New target price is 33% above last closing price of NZ$4.47. Stock is down 45% over the past year. The company is forecast to post earnings per share of NZ$0.083 for next year compared to NZ$0.26 last year. Reported Earnings • Aug 30
First half 2023 earnings released: EPS: NZ$0.017 (vs NZ$0.12 in 1H 2022) First half 2023 results: EPS: NZ$0.017 (down from NZ$0.12 in 1H 2022). Revenue: NZ$673.2m (up 10.0% from 1H 2022). Net income: NZ$2.18m (down 86% from 1H 2022). Profit margin: 0.3% (down from 2.5% in 1H 2022). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 3.9% p.a. on average during the next 3 years, compared to a 8.0% growth forecast for the Hospitality industry in Oceania. Major Estimate Revision • Aug 13
Consensus EPS estimates fall by 62% The consensus outlook for fiscal year 2023 has been updated. 2023 EPS estimate fell from NZ$0.274 to NZ$0.104 per share. Revenue forecast steady at NZ$1.38b. Net income forecast to shrink 9.6% next year vs 123% growth forecast for Hospitality industry in New Zealand . Consensus price target down from NZ$7.66 to NZ$6.49. Share price fell 18% to NZ$5.26 over the past week. Price Target Changed • Aug 09
Price target decreased by 9.0% to NZ$6.97 Down from NZ$7.66, the current price target is an average from 3 analysts. New target price is 34% above last closing price of NZ$5.20. Stock is down 43% over the past year. The company is forecast to post earnings per share of NZ$0.27 for next year compared to NZ$0.26 last year. Valuation Update With 7 Day Price Move • Aug 08
Investor sentiment deteriorates as stock falls 20% After last week's 20% share price decline to NZ$5.20, the stock trades at a forward P/E ratio of 19x. Average forward P/E is 24x in the Hospitality industry in Oceania. Total loss to shareholders of 55% over the past three years. New Risk • Aug 07
New minor risk - Dividend sustainability The company has an unstable dividend paying track record. The dividend has had an annual drop of over 20% in the past. Dividend yield: 2.9% This is considered a minor risk. If the company has cut or reduced its dividend in the past, it may be a sign that the underlying business is too cyclical to consistently maintain or grow the dividend over the long-term. It may also indicate the company prioritizes other outcomes instead of maintaining the dividend. For dividend paying companies, any reduction in the dividend can significantly impact the share price. Currently, the following risks have been identified for the company: Major Risk Interest payments are not well covered by earnings (2.0x net interest cover). Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Profit margins are more than 30% lower than last year (2.5% net profit margin). Major Estimate Revision • May 21
Consensus EPS estimates fall by 22% The consensus outlook for fiscal year 2023 has been updated. 2023 EPS estimate fell from NZ$0.338 to NZ$0.263 per share. Revenue forecast steady at NZ$1.38b. Net income forecast to grow 2.4% next year vs 20% growth forecast for Hospitality industry in New Zealand. Consensus price target down from NZ$9.10 to NZ$7.66. Share price fell 10% to NZ$6.73 over the past week. Price Target Changed • May 19
Price target decreased by 12% to NZ$7.93 Down from NZ$8.98, the current price target is an average from 3 analysts. New target price is 18% above last closing price of NZ$6.73. Stock is down 43% over the past year. The company is forecast to post earnings per share of NZ$0.26 for next year compared to NZ$0.26 last year. Upcoming Dividend • Mar 29
Upcoming dividend of NZ$0.19 per share at 2.4% yield Eligible shareholders must have bought the stock before 05 April 2023. Payment date: 20 April 2023. Payout ratio is a comfortable 62% but the company is paying out more than the cash it is generating. Trailing yield: 2.4%. Lower than top quartile of New Zealander dividend payers (6.6%). In line with average of industry peers (2.2%). Recent Insider Transactions • Mar 13
Insider recently bought NZ$94k worth of stock On the 9th of March, Julie Ward bought around 15k shares on-market at roughly NZ$6.27 per share. This transaction increased Julie Ward's direct individual holding by 3x at the time of the trade. In the last 3 months, there was an even bigger purchase from another insider worth NZ$132k. Insiders have collectively bought NZ$226k more in shares than they have sold in the last 12 months. Reported Earnings • Mar 03
Full year 2022 earnings: Revenues exceed analysts expectations while EPS lags behind Full year 2022 results: EPS: NZ$0.26 (down from NZ$0.42 in FY 2021). Revenue: NZ$1.30b (up 17% from FY 2021). Net income: NZ$32.1m (down 38% from FY 2021). Profit margin: 2.5% (down from 4.7% in FY 2021). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 1.4%. Earnings per share (EPS) missed analyst estimates by 2.1%. Revenue is forecast to grow 4.3% p.a. on average during the next 3 years, compared to a 8.3% growth forecast for the Hospitality industry in Oceania. Over the last 3 years on average, earnings per share has fallen by 3% per year but the company’s share price has fallen by 19% per year, which means it is performing significantly worse than earnings. Price Target Changed • Jan 27
Price target decreased by 7.5% to NZ$9.71 Down from NZ$10.49, the current price target is an average from 3 analysts. New target price is 53% above last closing price of NZ$6.35. Stock is down 57% over the past year. The company is forecast to post earnings per share of NZ$0.26 for next year compared to NZ$0.42 last year. Announcement • Jan 25
Restaurant Brands New Zealand Limited (NZSE:RBD) acquired KFC inside the Auckland Airport International Terminal. Restaurant Brands New Zealand Limited (NZSE:RBD) acquired KFC inside the Auckland Airport International Terminal on January 25, 2023. Restaurant Brands New Zealand Limited (NZSE:RBD) Completed the acquisition of KFC inside the Auckland Airport International Terminal on January 25, 2023. Board Change • Nov 16
Insufficient new directors There is 1 new director who has joined the board in the last 3 years. The company's board is composed of: 1 new director. 6 experienced directors. No highly experienced directors. Independent Non-Executive Director Malena Pato-Castel was the last director to join the board, commencing their role in 2021. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Announcement • Sep 28
Restaurant Brands New Zealand Limited Provides Earnings Guidance for the Year 2022 Restaurant Brands New Zealand Limited provided earnings guidance for the year 2022. The company expects that the reported net profit after taxation for the 2022 year is expected to be in the range of $32 million to 37 million. Reported Earnings • Sep 01
First half 2022 earnings released: EPS: NZ$0.12 (vs NZ$0.28 in 1H 2021) First half 2022 results: EPS: NZ$0.12 (down from NZ$0.28 in 1H 2021). Revenue: NZ$611.9m (up 8.6% from 1H 2021). Net income: NZ$15.3m (down 56% from 1H 2021). Profit margin: 2.5% (down from 6.1% in 1H 2021). The decrease in margin was driven by higher expenses. Over the next year, revenue is forecast to grow 7.7%, compared to a 28% growth forecast for the Hospitality industry in New Zealand. Over the last 3 years on average, earnings per share has increased by 8% per year but the company’s share price has fallen by 8% per year, which means it is significantly lagging earnings. Price Target Changed • Jul 28
Price target decreased to NZ$11.82 Down from NZ$13.74, the current price target is an average from 3 analysts. New target price is 19% above last closing price of NZ$9.91. Stock is down 38% over the past year. The company is forecast to post earnings per share of NZ$0.27 for next year compared to NZ$0.42 last year. Major Estimate Revision • Jul 28
Consensus forecasts updated The consensus outlook for 2022 has been updated. 2022 EPS estimate fell from NZ$0.44 to NZ$0.35 per share. Revenue forecast steady at NZ$1.23b. Net income forecast to shrink 16% next year vs 14% growth forecast for Hospitality industry in New Zealand . Consensus price target down from NZ$13.74 to NZ$12.99. Share price fell 9.1% to NZ$9.91 over the past week. Announcement • Jul 28
Restaurant Brands New Zealand Limited Provides Earnings Guidance for the Half Year Ending 30 June 2022 Restaurant Brands New Zealand Limited announced that preliminary management financial results for the half year ending 30 June 2022 indicate that NPAT for the period will be between $14 million and $16 million (half year 2021 NPAT was $34.5 million). The half year for 2021 included one-off income of $11.4 million arising from the forgiveness of the Hawaiian PPP loan. Board Change • May 28
High number of new directors There are 5 new directors who have joined the board in the last 3 years. Independent Non-Executive Director Malena Pato-Castel was the last director to join the board, commencing their role in 2021. The company’s lack of board continuity is considered a risk according to the Simply Wall St Risk Model. Price Target Changed • Aug 30
Price target increased to NZ$14.89 Up from NZ$12.85, the current price target is an average from 3 analysts. New target price is 6.9% below last closing price of NZ$16.00. Stock is up 33% over the past year. Announcement • Apr 29
Restaurant Brands New Zealand Limited (NZSE:RBD) acquired Five KFC Stores In Northern Sydney. Restaurant Brands New Zealand Limited (NZSE:RBD) acquired Five KFC Stores In Northern Sydney in First Quarter 2021. Post this completion Restaurant brands will hold 75 stores.
Restaurant Brands New Zealand Limited (NZSE:RBD) completed the acquisition of Five KFC Stores In Northern Sydney in First Quarter 2021. Is New 90 Day High Low • Mar 01
New 90-day high: NZ$12.25 The company is up 1.0% from its price of NZ$12.10 on 01 December 2020. The New Zealander market is down 3.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Hospitality industry, which is flat over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is NZ$5.94 per share. Reported Earnings • Feb 27
Full year 2020 earnings released: EPS NZ$0.25 (vs NZ$0.29 in FY 2019) The company reported a soft full year result with weaker earnings and profit margins, although revenues improved. Full year 2020 results: Revenue: NZ$924.7m (up 5.0% from FY 2019). Net income: NZ$30.9m (down 14% from FY 2019). Profit margin: 3.3% (down from 4.1% in FY 2019). Over the last 3 years on average, earnings per share has fallen by 5% per year but the company’s share price has increased by 19% per year, which means it is well ahead of earnings. Announcement • Feb 11
Restaurant Brands New Zealand Limited Appoints Maria Elena Pato-Castel as Non-Executive Director, Effective from April 1, 2021 Restaurant Brands New Zealand Limited appointed Maria Elena Pato-Castel as non-executive director of the company with effect from April 1, 2021. Malena brings to the board of Restaurant Brands over 30 years of experience in the consumer goods and restaurant industries, most recently spending nine years at AmRest Holdings SE where she retired in 2020 as Chief Proprietary Brands Officer. Major Estimate Revision • Feb 04
Analysts increase EPS estimates to NZ$0.43 The 2020 consensus revenue estimate increased from NZ$881.7m to NZ$899.1m. The earnings per share estimate also received an upgrade from NZ$0.30 to NZ$0.43 for the same period. Net income is expected to grow by 46% next year compared to 18% growth forecast for the Hospitality industry in New Zealand. The consensus price target was lowered from NZ$13.08 to NZ$12.85. Share price is up 1.2% to NZ$11.67 over the past week. Is New 90 Day High Low • Jan 15
New 90-day low: NZ$11.21 The company is down 7.0% from its price of NZ$12.00 on 16 October 2020. The New Zealander market is up 8.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Hospitality industry, which is up 1.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is NZ$14.81 per share. Is New 90 Day High Low • Dec 30
New 90-day low: NZ$11.60 The company is down 3.0% from its price of NZ$11.91 on 01 October 2020. The New Zealander market is up 14% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Hospitality industry, which is up 7.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is NZ$15.10 per share. Is New 90 Day High Low • Oct 29
New 90-day low: NZ$11.70 The company is down 2.0% from its price of NZ$11.95 on 31 July 2020. The New Zealander market is up 6.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Hospitality industry, which is up 6.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is NZ$13.89 per share. Major Estimate Revision • Oct 23
Analysts increase EPS estimates to NZ$0.30 The 2020 consensus revenue estimate increased from NZ$869.2m to NZ$881.7m. The earnings per share estimate also received an upgrade from NZ$0.26 to NZ$0.30 for the same period. Net income is expected to grow by 43% next year compared to 13% growth forecast for the Hospitality industry in New Zealand. The consensus price target of NZ$13.08 was unchanged from the last update. Share price is up 2.1% to NZ$12.25 over the past week. Announcement • Sep 02
Restaurant Brands New Zealand Limited (NZSE:RBD) completed the acquisition of 58 KFC stores and 11 multi-brand KFC and Taco Bell stores, together with a head office facility in Southern California, USA from Great American Chicken Corp. for $80.7 million. Restaurant Brands New Zealand Limited (NZSE:RBD) entered into an asset purchase agreement to acquire 70 stores in Southern California, USA from Great American Chicken Corp. for $73 million on December 23, 2019. The transaction is for a purchase price of $73 million plus capital expenditure reimbursements for recent store refurbishment and customary working capital adjustments. The purchase comprises 59 KFC stores and 11 combined KFC and Taco Bell stores, together with a head office facility. It will be fully debt funded. Restaurant Brands New Zealand Limited has negotiated new bi-lateral committed bank debt facilities totaling approximately NZD 370 million ($235.2 million) with Westpac, JPMorgan, Rabobank and Bank of China. Restaurant Brands is currently completing a refinancing exercise to, amongst other things, add extra capacity to its borrowing facilities. Restaurant Brands will be offering continued employment to all 1,100 part time and 500 full time staff currently employed by the franchisee. The agreement is subject to the customary conditions for transactions of this nature, including Yum! approval and landlord approval for the assignment of store leases. For the year ended December 31, 2018, business generated turnover of $95 million and a 12 month trailing store EBITDA (pre- G&A) of in excess of $12 million. Settlement is expected by March 2020. Greenberg Traurig, LLP acted as legal advisor to Great American Chicken. James Hsu of Squire Patton Boggs (US) LLP acted as legal advisor to Restaurant Brands New Zealand.
As on August 31, 2020, the terms of the transaction have changed to 69 stores in total which include 58 KFC stores and 11 multi-brand KFC and Taco Bell stores, together with a head office facility. The deal has received consent from KFC and Taco Bell. Settlement is expected to occur by September 2, 2020.
Restaurant Brands New Zealand Limited (NZSE:RBD) completed the acquisition of 58 KFC stores and 11 multi-brand KFC and Taco Bell stores, together with a head office facility in Southern California, USA from Great American Chicken Corp. for $80.7 million on September 1, 2020. The consideration paid included capital expenditure reimbursements for store refurbishments carried out since the commencement of the transaction and customary working capital adjustments. The acquisition was fully funded from existing debt facilities. Announcement • Aug 25
Restaurant Brands New Zealand Limited to Report First Half, 2021 Results on Sep 08, 2020 Restaurant Brands New Zealand Limited announced that they will report first half, 2021 results on Sep 08, 2020 
