Restaurant Brands Announces Annual Profit Result

DIRECTORS’ REPORT
For the year ended 31 December 2022 (FY22)

$NZm
Dec 2022 Dec 2021 Change ($) Change (%)
Total Sales 1,239.0 1,068.2 +170.8 +16.0
Net Profit After Tax 32.1 51.9 -19.8 -38.2


Key Points

• A $170.8 million increase in total sales for the year to $ 1,239.0 million, 16.0% up against the previous
year, with all four operating divisions showing growth.

• Reported net profit after tax of $32.1 million for the year, which was down $ 19.8 million on the last
year, due to the ongoing adverse impact of inflation and the 2021 (FY21) result which included the
forgiveness of the $11.4 million US Government loan.

• Combined store EBITDA
1
(pre-NZ IFRS 16) for the period was $ 180.2 million, up 4.3% on the
previous year.

• Total store numbers increased by 17 to 376 including the acquisition of two KFC stores, one in
New Zealand and one in California.

• Directors have declared a fully imputed final dividend of 16.0 cents per ordinary share, payable on
20 April to all shareholders on the register on 6 April 2023.


Overview

After successfully riding out the COVID-19 challenges during the 2020 and 2021 years, Restaurant Brands
faced an even bigger challenge in 2022, that of sudden significant inflation pressures across all operating
divisions. Food inflation has been particularly high, being well above the overall consumer price index (CPI)
inflation rates in each of the company’s markets. Price increases have been taken to mitigate some of the
impact of rising costs where possible.

The result was once again adversely affected by COVID-19, particularly in the first quarter o f the year with
disruptions across all the company’s operations primarily due to staffing issues caused by isolation
requirements. Staffing shortages continue to be a challenge with high levels of vacancies across all
divisions.

In the FY21 year the company saw its federal PPP loan in Hawaii forgiven, resulting in an additional
$11.4 million in net income. This was a one-off gain which, when normalised, reduces the FY21 result to
$40.5 million.

The resulting FY22 reported NPAT of $32.1 million is down 38.2% or $19.8 million on the prior year.
Normalised for the gain on the PPP loan forgiveness the result is down $8.4 million or 2 0.7%.

Grou
p Operating Results

Directors wish to report that during these high inflationary times Restaurant Brands has produced a reported
net profit after tax (NPAT) for the year ended 31 December 2022 (FY22) of $32.1 million.

Direct comparisons between the FY21 and FY22 years remain difficult as both years have been affected by
COVID- 19. In addition this year’s result has been severely impacted by inflation whilst last year’s result
included the benefit of the $11.4 million US PPP loan forgiveness.

1
EBITDA is earnings before interest, tax, depreciation and amortisation. T he EBITDA amounts referred to throughout
this report are before G&A, NZ IFRS 1 6 and Other Items. EBITDA is a non-GAAP financial measure and is not in
accordance with NZ IFRS.
RESTAURANT BRANDS NEW ZEALAND LIMITED

Total brand sales for the Company w ere $1,239.0 million, up $170.8 million on the previous year. This is due
to the reduced sales levels in 2021 arising from the extended lock down in New Zealand (with an estimated
$26 million of lost sales) and the inclusion of 17 new stores opened between December 2021 and
December 2 022. All four divisions produced positive total sales growth over the year. Same store sales were
also positive for all divisions except California which saw reduced consumer spending in the face of high
inflation levels and the withdrawal of government stimulus payments to households.

Combined store EBITDA (pre-NZ IFRS 16 and Other Items) of $180.2 million was up $7.5 million or +4.3%
on the prior year. Sales growth was assisted by a significant turnaround in the New Zealand business (with
store closures signific antly impacting 2021 performance) and a strong result in the Hawaii division. EBITDA
margins (as a % of sales) reduced from 16.2% to 14.5% due to continued cost pressures across all divisions.

Restaurant Brands’ store numbers at the end of December 2022 totalled 376, comprising 143 i n
New Zealand, 83 stores in Australia, 75 in Hawaii and 75 stores in California.

New Zealand Operations

Total store sales in New Zealand were $529.2 million, up $68.1 million or +14.8% on the December 2021
year. This was largely from strong sales in the KFC brand, along with growing store numbers in the KFC and
Taco Bell networks. The favourable prior year comparison was also partly because the 2021 result was
adversely affected by major COVID-r elated store closures across the country ( including an extended
lockdown in the major Auckland region which resulted in lost sales of approximately $26 million).


31 December
2022

31 December
2021

Change ($)

Change (%)
Store sales ($m) 529.2 461.1 +68.1 +14.8%
EBITDA ($m) 89.5 83.3 +6.2 +7.4%
EBITDA as a % of Sales 16.9 18.1
Store Numbers 143 137


The New Zealand KFC a nd Pizza Hut businesses both delivered some of the strongest sales in their
respective brands’ histories. With price increases and the continued introduction of great new products
including Hot & Crispy Boneless Chicken (KFC) and Detroit Pizza (Pizza Hut) weekly sales reached new
highs for both brands.

Carl’s Jr. continues to perform well w ith sales up on last year, even with reduced store numbers.

Although Taco Bell remains a small portion of the New Zealand business, with three stores opened during
the year, overall sales more than doubled during 2022. An e-commerce website has been launched for
Taco Bell which allows customers to order online.

Store EBITDA for NZ operations was $89.5 million, up $6.2 million with some leverage from the higher sales.
This was despite the underlying EBITDA as a percentage of sales reducing to 16.9% from 18.1%. Inflation
had a substantial impact on margins with ingredient and labour input costs rising significantly and well above
the level of CPI.

COVID-19 isolation requirements for staff and ongoing tightness in the New Zealand labour market
adversely impacted th e result, particularly in the first half of FY22. This consequently restric ted the ability to
operate full trading hours across all stores and channels. However, the situation is slowly being remedied
with some growth in staff numbers.

Whilst plant and equipment constraints have slowed development, the NZ division continued to build and
develop new stores with three KFC outlets opening at Whangarei South, Richmond and Ruakura. The
business also acquired the KFC in the Auckland Airport International Terminal. Three Taco Bells were
opened at Cuba Mall, Wellington, Botany Downs, Auckland and Christchurch Airport.

The Pizza Hut store network has also continued to grow with nine new independently franchised stores
opening over the year. This brought the total number of Pizza Hut stores to 115, of which 109 are operated
by independent franchisees under a master franchise agreement with Restaurant Brands.

Australian Operations

In NZ$ terms the Australian business contributed total sales of $NZ283.4 million (up 16.1%) and a store
EBITDA of $NZ31.2 million (down 1.3%).


31 December
2022

31 December
2021

Change ($)

Change (%)
Sales ($Am) 259.0 230.0 +29.0 +12.6%
Store EBITDA ($Am) 28.6 29.8 -1.2 -4.0%
EBITDA as a % of Sales 11.0 13.0
Store Numbers 83 79

Total sales in Australia were $A259.0 million, up $A29.0 million (or +12.6%) on last year, due to same store
sales growth of +7.4% along with additional store openings and the full annualised effect of stores opened
throughout FY21.

St ore EBITDA of $A28.6 million (11.0% of sales) was down $A1.2 million or - 4.0% on last year. This was
because of a number of challenges during the year, including further COVID-19 outbreaks, extreme weather
events, major supply chain disruptions, and significant inflationary pressures. With the lower EBITDA, the %
margin dropped from 13.0% to 11.0%.

Despite these challenges the business has continued to grow with four new Taco Bell stores and one new
KFC store opening during the year and ongoing upgrades to existing facilities including further i nvestment in
digital technology (kiosks & digital drive thru menu boards) improving customer experience. There has also
been further expansion of the delivery channels with the launch of Uber Eats as a deliver y partner.

Hawaiian Operations

In $NZ terms, Hawaiian operations contributed $NZ247.5 million in sales and $NZ42.3 million in store
EBITDA for the year. This was significantly higher than FY21 with sales up $NZ41.0 million and EBITDA up
$NZ8.4 million, partly h elped by a favourable NZD/USD exchange rate.


31 December
2022

31 December
2021

Change ($)

Change (%)
Sales ($USm) 156.4 146.3 +10.1 +6.9%
Store EBITDA ($USm) 26.8 24.4 +2.4 +9.8%
EBITDA as a % of Sales 17.1 16.4
Store Numbers 75 73

Total sales i n Hawaii in USD terms for the period were $US156.4 million, up 5.4%. Store level EBITDA was
$US26.8 million ( 17.1% as a percentage of sales vs 16.4% in the prior period). Taco Bell sales topped
$US100 million for the first t ime in the division’s history.

The strong sales growth (up $US10.1 million) was primarily due to the continued outstanding recovery by
Taco Bell after it was severely affected by COVID- 19. Same store sales growth for Hawaii was 2.9% for the
year, following on from an increase of 9.1% in same store sales growth in FY21.

Taco Bell’s strong performance was underpinned by strong promotional activities and product innovation.
Sales for the Mexican Pizza were particularly strong, with the initial promotion selling out of product in less
than a week. A relaunch later in the year proved equally successful. Delivery aggregators also continue to
grow in volume.

Taco Bell also opened two new restaurants at Kilauea (on the island of Hawaii) and Ho’okele (on Maui).

Although Pizza Hut achieved more moderate growth, innovative product offers such as Pizza Melts, which
targeted lunchtime diners were very successful. During the year DoorDash also rolled out a delivery service
in the State. This allowed Pizza Hut t o still deliver orders generated from the Pizza Hut proprietary systems
despite facing delivery driver staffing shortages.

Californian Operations

In $NZ terms California operations contributed $NZ179.0 million (up $22.5 million) in revenue. However,
store EBITDA was down $6.7 million to $NZ17.1 million. The reported revenue increase in $NZ terms is
largely due to a strong $US exchange rate.


31 December
2022
31 December
2021
Change ($) Change (%)
Sales ($USm) 113.2 110.3 +2.9 +2.6%
Store EBITDA ($USm) 10.9 16.8 -5.9 -35.1%
EBITDA as a % of Sales 9.6 15.2
Store Numbers 75 70

Total sales were up $2.9 million to $113.2 million primarily due to store growth from four new KFC stores
opened during the year and the acquisition of an existing KFC store in the Palm Valley area. Same store
sales were down 2.9% for the year due to reduced California consumer spending in the face of high inflation
levels and the withdrawal of government stimulus payments that were made to households in 2020 and
2021.

Store EBITDA was $US10.9 million (9 .6% as a percentage of sales). T he reduction in % EBITDA margin was
the result of significant cost pressures which continue to impact the business into 2023.

There were four new KFC store openings during the FY22 year with the first three new stores since
acquisition of the California business in September 2020 opening over an intensive period of six weeks.
KFC San Bernardino opened in February 2022. KFC Perris (opened March 2022) and KFC Barstow (opened
April 2022) were both new format ‘American Showman N ext Generation’ store formats.

The sales from these stores continue to track above expectations. A fourth new store at Ridgecrest opened
in August 2022. Opening day trading in both the Ridgecrest and Barstow stores were in the top 10 opening
days ever for any US KFC outlet.

Overall, store numbers grew by five with the four new store openings, and one acquired store. The store,
acquired in January 2022, has tracked to expectation and is being remodelled in early 2023 to improve back
of house operations and present a more contemporary customer offering consistent with our existing stores.

Corporate & Other

General and administration (G&A) costs were $61.4million, up $11.4 million from last year reflecting the
effect of inflation on salary costs as well as the continued expansion of the business, parti cularly the growth
of Taco Bell in New Zealand and Australia. G&A as a % of total revenue was 4.7% which is up from 4.5% for
FY21.

Depreciation charges of $85.2 million for the year ended 31 December 2022 were $10.1 million higher than
the prior year primarily due to the impact of continued high capital expenditure on new stores and
refurbishments of existing s tores. Of the $85.2 million, $41.3 million related to right of use asset depreciation
incurred under NZ IFRS 16.

Financing costs of $44.5 million were up $8.2 million on prior year, reflecting the impact of both increased
debt levels and higher interest rates. Interest on bank debt for the period ended 31 December 2022 was
$11.1 million, up $4.3 million on last year. The additional debt arose from continued heavy reinvestment in
pr operty, plant and equipment and the payment of the fir st dividend since 2018.

Tax expense was $10.1 million, $3.8 million lower t han the prior year reflecting the lower level of profitability
for the year. The effective tax rate was 23.9% (21.1% for FY21 ) due to the higher level of non-assessable
income in FY21 which included the forgiveness of the US PPP Loan.

Other I tems

Other net expenses of $2.9 million are down from a net income of $7.2 million for the prior year. The prior
year positive income arose primarily due to the forgiveness of the US PPP loan of $11.4 million. This year’s
expenditure primarily was a further $4.0 million in systems develo pment costs (FY21 $4.2 million) which
were incurred as part of a major overhaul of the company’s financial systems. Other items in other income
and expenses in FY22 were $1.2 million in store closure and asset impairment costs, insurance recovery on

a flo od damaged store under a full replacement insurance policy and a gain on acquisition relating to a store
in California acquired for a value lower than its net assets.
Cash Flow & Balance Sheet
Tot
al assets were $1, 417.3 million, up $87.4 million on FY21 primarily because of new store acquisitions and
store builds which increased the value of both property, plant and equipment as well as lease assets.
Equally, there has been an increase of $84 .0 million in liabilities, primarily reflecti ng the futu re discounted
lease liability on leases acquired and an increase in debt.
Operating cash flows (adjusted by $ 27.0 million for NZ IFRS 16) were down $7.3 million to $94.6 million,
reflecting the lower margins from the effects of inflation.
Net inv
esting cash outflows were $91.6 million (vs $109.6 million in FY21). FY21 was higher than the current
year because of the acquisition of seven stores (for a total of $28.0 million). Payments for property, plant and
equipment were $90.5 million, compared with $82.6 million in the prior year. Much of the expenditure was on
new stores with four new KFC and seven new Taco Bell stores in New Zealand and Australia (together with
significant KFC refurbishment expenditure in both those markets). There were also four new KFC stores
opened in California and two Taco Bell stores opened in Hawaii.
Debt Refinancing
Over the year the company renewed its bank lending facilities with Westpac, JPMorgan, Rabobank and
Bank of China - the majority of which were due to expire in April 2023.
The refinancing was with bi-lateral committed bank debt facilities under the existing global negative pledge
arrangement, totalling approximately $370 million (NZD equivalent). The facilities are split between NZD,
USD and AUD tranches with a mix of fo ur and five-year tenors.
The lending facilities are on similar t erms to RBD’s previous banking arrangements and were activated in
December 2022.
Dividend
Directors have assessed at balance date the current and projected financial position of the company and in
particular its cash flows
, capital expenditure demands and debt levels.
A final dividend has been declared for 16.0 cents p er ordinary share, payable on 20 April 2023 to all
shareholders on the register on 6 April 2023. The dividend will be paid as fully imputed to all New Zealand
resident shareholders. In addition, a supplementary dividend of 2.8235 cents per share will be paid to all
overseas shareholders at the same time.
There is no dividend reinvestment plan in place for this dividend.
Annual Shareholders’ Meeting
The Annual Shareholders’ Meeting of the company will be held in Auckla nd on Thursday 18 May 2023.
Authorised by:
José Parés
Chairman of the Board
Russel Creedy
Group CEO

Cons olidate d Income State me nt
For the year ended 31 December 2022
31 December 2022vs Prior31 December 2021
$NZ000's%
Sale s
New Zealand529,158 14.8461,121
A
us tralia283,397 16.1244,104
Hawaii247,459 19.8206,506
California179,035 14.4156,516
Total sales1,239,048 16.01,068,247
O ther revenue59,170 28.146,195
Total operating revenue1,298,218 16.51,114,441
Cost of goods sold(1,077,075)(18.1)(912,359)
Gross margin221,143 9.4202,082
Distribution expenses (8,244)3.6(8,555)
Marketing expenses(61,849)(10.8)(55,840)
General and administration expenses(61,444)(23.0)(49,974)
Government grants- n/a7,165
Loan forgiven- n/a11,419
O the r ite ms(2,900)31.3(4,219)
Ope rating profit 86,705 (15.1)102,077
Financing expenses(44,528)(22.7)(36,284)
Ne t profit be fore taxation42,177 (35.9)65,793
Taxation expense (10,094)27.4(13,912)
Total profit afte r taxation (NPAT)32,083 (38.2)51,881
% sales% sales
Conce pt EB ITD A be fore G&A including Gove rnme nt grants
New Zealand89,545 16.97.583,319 18.1
Aus tralia31,205 11.0(1.3)31,614 13.0
Hawaii42,322 17.124.733,932 16.4
California17,147 9.6(28.1)23,849 15.2
Total conce pt EBITDA be fore G&A180,219 14.54.3172,713 16.2
Ratios
N e t tangible as s e ts pe r s e curity (ne t tangible as s e ts divide d by
numbe r of s hare s ) in ce nts
11.9 8.4
Cost of goods sold are direct costs of operating stores: food, paper, freight, labour and store overheads.
Distribution expenses are costs of distributing product from store.
Marketing expenses are order centre, advertising and local store marketing expenses.
General and administration expenses (G&A) are non-store related overheads.
Sales and concept EBITDA for each of the concepts may not aggregate to the total due to rounding.

N on-GAAP Financial M e as ure s
For the year ended 31 December 2022
The Group results are prepared in accordance with New Zealand Generally Accepted Accounting Practice (“NZ GAAP”) and comply
with New Zealand International Financial Reporting Standards (“NZ IFRS”). These financial statements include non-NZ GAAP
financial measures that are not prepared in accordance with NZ IFRS. The non-NZ GAAP financial measures used in this presentation
are as follows:
1. EB ITD A including Gove rnme nt grants , G&A and othe r ite ms. The Group calculates Earnings Before Interest, Tax, Depreciation
and Amortisation (“EBITDA”) before G&A (general and administration expenses) and other items by taking net profit before taxation
and adding back (or deducting) financing expenses, other items, depreciation, amortisation and G&A. The Group also refers to this
measure as Store EBITDA be fore G&A and othe r ite ms. This measure provides the results of the Group’s core operating business
and excludes those costs not directly attributable to stores. This is believed to be a useful measure to assist in the understanding of the
financial performance of the Group.
The term S tore refers to the Group’s 10 operating divisions comprising the New Zealand brands (KFC, Pizza Hut, Taco Bell and
Carl’s Jr.), the two Australia brands (KFC and Taco Bell), the two Hawaii brands (Taco Bell and Pizza Hut), and the two California
brands (KFC and Taco Bell). The term G&A represents non-store related overheads.
2. Total NPAT excluding the impact of NZ IFRS 16. Total Net Profit After Taxation (“NPAT”) excluding the impact of NZ IFRS
16 is calculated by taking profit after taxation attributable to shareholders and adding back (or deducting) lease items whilst also
allowing for any tax impact of those items. This measure reflects the performance of the business, excluding costs associated with the
adoption of NZ IFRS 16 and is considered a useful measure to assist with understanding the financial performance of the Group.
The Group believes that these non- N Z GAAP measures provide useful information to readers to assist in the understanding of the
financial performance and position of the Group but that they should not be viewed in isolation, nor considered as a substitute for
measures reported in accordance with IFRS. Non-NZ GAAP measures as reported by the Group may not be comparable to similarly
titled amounts reported by other companies.
The following is a reconciliation between these non-NZ GAAP measures and net profit after taxation:
$NZ000's
Note*
EB ITD A including Gove rnme nt grants , be fore G&A and othe r ite ms1180,016 172,713
Depreciation(43,935)(36,944)
Net loss on sale of property, plant and equipment (included in depreciation)(952)(3,619)
Lease depreciation(41,282)(38,129)
Lease costs60,473 53,993
Amo rtis a tio n (inc lud e d in c o s t o f s a le s )(10,119)(9,231)
General and administration costs - area managers, general managers and support centre(54,596)(43,906)
Loan forgiven- 11,419
O the r ite ms(2,900)(4,219)
Ope rating profit86,705 102,077
Financing expenses(44,528)(36,284)
Ne t profit be fore taxation 42,177 65,793
Taxation expense (10,094)(13,912)
Ne t profit afte r taxation32,083 51,881
Add back NZ IFRS 16 impact14,208 13,586
Income tax on NZ IFRS 16 impact(3,934)(3,986)
Total NPAT excluding the impact of NZ IFRS 16
242,357 61,482
* Refers to the list of non-NZ GAAP measures as listed above.
31 Dec 202231 Dec 2021

---

Results announcement
(for Equity Security issuer/Equity and Debt Security issuer)


Results for announcement to the market
Name of issuer Restaurant Brands New Zealand Limited
Reporting Period Year ended 31 December 2022
Previous Reporting Period Year ended 31 December 2021
Currency NZD
Amount (000s) Percentage change
Revenue from continuing
operations
$1,298,218 16.5%
Total Revenue $1,298,218 16.5%
Net profit/(loss) from
continuing operations
$32,083 -38.2%
Total net profit/(loss) $32,083 -38.2%
Interim/Final Dividend
Amount per Quoted Equity
Security
$ 0.16
Imputed amount per Quoted
Equity Security
$0.0622
Record Date 06/04/2023
Dividend Payment Date 20/04/2023
Current period Prior comparable period
Net tangible assets per
Quoted Equity Security
$0.12 $0.08
A brief explanation of any of
the figures above necessary
to enable the figures to be
understood
Refer announcement for Restaurant Brands released to the
market on 28 February 2023
Authority for this announcement
Name of person

authorised
to make this announcement
Grant Ellis
Contact person for this
announcement
Grant Ellis
Contact phone number +64 9 525 8710
Contact email address Grant.ellis@rbd.co.nz
Date of release through MAP

28/02/2023

Audited financial statements accompany this announcement.

---

Russel Creedy - Group CEOGrant Ellis - Group CFO28 February 2023
Restaurant Brands
New Zealand Limited
Annual Results to 31 December 2022
(FY22)

•
The New Team
•
Key Points
•
Results Overview
•
New Zealand Operations
•
Australian Operations
•
Hawaiian Operations
•
Californian Operations
•
Questions
Presentation Outline
2

The New Team
3
Arif Khan – Acting Group Chief Executive Officer• Previously CEO for Restaurant Brands NZ division since 2018.• 25 years international QSR and hospitality experience.• New role effective 1 April 2023.Julio Valdés – Group Chief Financial Officer• Currently serves as CFO for Grupo Finaccess – the 75%
shareholder of Restaurant Brands.
• Prior to joining Grupo Finaccess, Julio worked for 29 years at PwC
as Market Team Leader of the largest auditing team in Mexico.
• New role effective 1 June 2023.

Key Points
4
FY
 
20
FY
 
21
FY
 
22
FY
 
22
 
vs.
 
FY
 
21
•
   
Group
 
Sales
$892.4m
$1,068.2m
$1,239.0m
+16.0%
•
   
Reported
 
NPAT
$30.6m
$51.9m
$32.1m
‐
38.2%
•
   
Brand
 
EBITDA
 
*
$146.0m
$172.7m
$180.0m
+4.2%
•
   
Group
 
sales
 
grow
 
on
 
strong
 
post
 
COVID
 
trading
 
and
 
additional
 
new
 
stores.
•
   
FY21
 
result
 
includes
 
$11.4m
 
of
 
PPP
 
loan
 
forgiven
 
in
 
Hawaii.
•
   
NPAT
 
impacted
 
by
 
inflation
 
pressures
 
and
 
higher
 
financing
 
costs.
•
   
Dividend
 
of
 
16.0
 
cents
 
per
 
share
 
declared,
 
payable
 
on
 
20
 
April
 
2023.
* - Brand EBITDA includes Government Grants - FY21 $7.2m (FY20 $22.0m)

5
Results Overview

6
NPAT decreases on inflation pressures and higher financing costs
* - Pre G&A, NZ IFRS 16 and Other (Income)/Expenses
$NZm
FY
 
21
FY
 
22
Brand
 
EBITDA
 
*
165
 
180
 
15
 
9%
 
G&A
 
Expenses
44
 
55
 
(11) (25%)
121
 
125
 
4
 
3%
 
Government
 
Grants
(7)
‐
(7) (100%)
PPP
 
Loan
 
Forgiven
(11)
‐
(11) (100%)
Other
 
Expenses
4
 
3
 
1
 
25%
 
Depreciation
 
&
 
Amortisation
49
 
55
 
(6)
(12%)
Operating
 
Profit
 
Pre
 
IFRS
 
16
86
 
67
 
(19) (22%)
IFRS
 
16
 
Adjustment
16
 
19
 
3
 
19%
 
Operating
 
Profit
102
 
86
 
(16) (16%)
Financing
 
Expenses
36
 
44
 
(8)
(22%)
Net
 
Profit
 
Before
 
Tax
66
 
42
 
(24) (36%)
Taxation
14
 
10
 
4
 
29%
 
Net
 
Profit
 
After
 
Tax
52
 
32
 
(20) (38%)
Change
 
B/(W)

7
Inflation – A significant and continuing impact on the business•
All divisions experienced ingredient inflation, with
California stores suffering the most. Shortages of supplies now having minimal impact.
•
Wage costs increasing with minimum wage increases,
general inflationary pressures and low unemployment.
•
Building costs under pressure; however starting to
settle down as construction sector experiences demand downturn.
•
Mitigation strategies include:
• Menu re-engineering• Price increases• Cost reductions / store efficiencies• Promotional activity

8
Quarterly Trendsures in excess of $26m. All staff were paid full wages over this time. •
Q1 impacted by COVID-19 outbreak.
•
Q2 recovered as COVID-19 restrictions and case
numbers decreased.
•
Q3 high inflation impacts margins.
•
Q4 price increases and other initiatives begin to
impact.
16.2%
13.6%
15.2%
13.9%
15.4%
14.5%
FY21
Q1
Q2
Q3
Q4
FY22
FY22
 
Brand
 
EBITDA

9
Taco Bell – New Zealand & Australia•
At year end 13 stores trading in NSW and 11 stores in
New Zealand.
•
Particularly hard-hit by COVID-19 flow on effects,
especially labour.
•
Ability to pass on cost increases more limited than with
established brands.
•
Roll out of further stores paused (once under
construction stores completed) until margins and trading conditions stabilise.
•
Dee Why store closed.

10
Sales lift on rolling over prior year COVID-19 store closures and new stores.Margins under inflationary pressures
410
 
461
 
529
 
215
 
244
 
283
 
215
 
207
 
247
 
52
 
157
 
179
 
892
 
1,068
 
1,239
 
FY
 
20
FY
 
21
FY
 
22
Divisional
 
Sales
$NZm
New
 
Zealand
Australia
Hawaii
California
75
 
83
 
90
 
29
 
32
 
31
 
34
 
34
 
42
 
9
 
24
 
17
 
146
 
173
 
180
 
FY
 
20
FY
 
21
FY
 
22
Brand
 
EBITDA
$NZm
New
 
Zealand
Australia
Hawaii
California

11
% of Revenue
4.5%
4.5%
G&A costs stable at 4.7% of revenues, but
up in $ terms with inflationary pressures
4.7%
18.9
 
19.4
 
23.0
 
9.1
 
11.1
 
14.5
 
10.3
 
9.0
 
10.9
 
2.5
 
8.1
 
9.1
 
5.1
 
2.4
 
3.9
 
FY
 
20
FY
 
21
FY
 
22
G&A
$NZm
New
 
Zealand
Australia
Hawaii
California
Corporate
50.0
61.4
45.9

12
Other Income and Expenses mainly ERP implementation costs for completed SAP system
$NZm
 
Pre
‐
tax
 
(Income)/Expenses
FY
 
21
FY
 
22
Loan
 
Forgiveness
(11.4)
‐
Gain
 
on
 
sale
 
Pizza
 
Hut
 
stores
(0.9)
‐
Insurance
 
recovery
‐
(1.6)
Gain
 
on
 
acquisition
‐
(0.8)
Acquisition
 
costs
0.7
 
0.1
 
Store
 
impairment
 
&
 
closure
‐
1.2
 
Sundry
 
other
 
income
 
&
 
expenses
0.2
 
‐
ERP
 
Implementation
4.2
 
4.0
 
Net
 
Other
 
(Income)
 
&
 
Expenses
(7.2)
2.9
 

13
Operating cash flows down on prior year with softer margins.Investing cash flows higher on catch up of
prior year’s COVID-19 related delays.
$NZm
FY
 
20
FY
 
21
FY
 
22
Operating
 
Cashflow
 
(
 
NZ
 
IFRS
 
16
 
adjusted)
90
 
*
102
 
*
95
 
*
Investing
 
Cashflow
 
(adjusted)
(58)
**
(82)
***
(92)
Free
 
Cashflow
32
 
20
 
3
 
*
 
Adjusted
 
for
 
lease
 
principal
 
payments
 
of
 
$27.0m
 
(FY21
 
$24.5m,
 
FY20
 
$21.2m)
 
classified
 
as
 
financing
 
activities
 
under
 
NZ
 
IFRS
 
16
**
 
Adjusted
 
for
 
$119.2m
 
($US80.7m)
 
69
 
store
 
California
 
acquisition
 
in
 
FY20
***
 
Adjusted
 
for
 
$27.5m
 
($A23.3m)
 
5
 
store
 
Australia
 
acquisition
 
in
 
FY21

14
Net borrowings increase on increased investment in stores and $40m dividend paid.Bank facilities renewed for 4 to 5 year tenors
FY 20 FY 21 FY 22
Facility (4-5 years)
Ratios
Net
 
Debt:
 
EBITDA*
1.9:1
1.6:1
2.0:1
Gearing (ND:ND+E)
47%
41%
46%
Net Bank Debt $NZm
*
EBITDA excluding right of use asset lease costs (pre-NZ IFRS 16)
201
202
251
 
375

15
New Zealand Operations

16
NZ sales grow on rolling over prior year COVID-19 closures and new stores.Margins impacted by inflation and higher mix of Taco Bell stores
410
 
461
 
529
 
5.3%
9.1%
2.4%
FY
 
20
FY
 
21
FY
 
22
NZ
 
Sales
Total
 
Sales
 
$m
Same
 
Store
 
Sales
 
%
76
 
83
 
90
 
18.5%
18.1%
16.9%
FY
 
20
FY
 
21
FY
 
22
NZ
 
Store
 
EBITDA
EBITDA
 
$m
EBITDA
 
%
 
of
 
Sales

17
Australian Operations

18
Australian sales increase as mall and CBD stores recover strongly from COVID-19 downturn. Margins under pressure from inflation
202
 
230
 
259
 
2.0%
1.4%
6.1%
FY
 
20
FY
 
21
FY
 
22
Australia
 
Sales
Total
 
Sales
 
$Am
Same
 
Store
 
Sales
 
%
28
 
30
 
29
 
13.7%
13.0%
11.0%
FY
 
20
FY
 
21
FY
 
22
Australia
 
Store
 
EBITDA
EBITDA
 
$Am
EBITDA
 
%
 
of
 
Sales

19
Hawaiian Operations

20
Hawaii sales and margins continue to be
strong with recovery of economy as tourism
returns
139
 
146
 
157
 
7.7%
9.1%
2.9%
FY
 
20
FY
 
21
FY
 
22
Hawaii
 
Sales
Total
 
Sales
 
$USm
Same
 
Store
 
Sales
 
%
22
 
24
 
27
 
15.6%
16.4%
17.1%
FY
 
20
FY
 
21
FY
 
22
Hawaii
 
Store
 
EBITDA
EBITDA
 
$USm
EBITDA
 
%
 
of
 
Sales

21
Californian Operations

22
California adversely impacted by high inflation and rolling over prior year sales assisted by government stimulus payments
36
 
110
 
113
 
2.3%
‐
2.9%
 
FY
 
20
 
FY
 
21
 
FY
 
22
California
 
Sales
Total
 
Sales
 
$USm
Same
 
Store
 
Sales
 
%
6
 
17
 
11
 
16.4%
15.2%
9.6%
FY
 
20
FY
 
21
FY
 
22
California
 
Store
 
EBITDA
EBITDA
 
$USm
EBITDA
 
%
 
of
 
Sales
Note: •
FY 20 = 4 months to 31 December 2020

Questions
DISCLAIMERThe information in this presentation: 
Is provided by Restaurant Brands New Zealand Limited (“
RBD
”) for general information purposes and does not constitute investm
ent advice or an offer of or invitation to purchase RBD secu
rities.

Includes forward-looking statements. These
statements are not guarantees or
predictions of future performance. They involve kno
wn and unknown risks, uncertainties
and other factors,
many of which
are beyond RBD’s control, and which may cause actual results to
differ materially from those contained in this presentation.

Includes statements relating to past performance which should not
be regarded as reliable indicators of future performance.

Is current at the date of this presentation, unless otherwise st
ated. Except as required by law
or the NZX Main Board and ASX li
sting rules, RBD is not under any obligation to update this presentation,
whether as a result of new information, future events or otherwise.

Should be read in conjunction with RBD’s audited consolidated
financial statements for the 12
months ending 31 December 2022 an
d NZX and ASX market releases.

Includes non-GAAP financial measures including "EBITDA”. These measures do not have a standardised meaning prescribed by GAAP a
nd therefore may not be com
parable to similar financial
information presented by other entities. However, they should not
be used in substitution for, or isolation of, RBD’s audited co
nsolidated financial statements. We
monitor EBITDA as a key performance
indicator, and we believe it assists investors in assessi
ng the performance of the core operations of our business.

Has been prepared with due care and attention. However, RBD and its directors and employees accept no liability for any errors
or omissions.
23

---

Distribution Notice





Please note: all cash amounts in this form should be provided to 8 decimal places

Section 1: Issuer information
Name of issuer Restaurant Brands New Zealand Limited
Financial product name/description Final dividend
NZX ticker code RBD
ISIN (If unknown, check on NZX
website)
NZRBDE0001S1
Type of distribution
(Please mark with an X in the
relevant box/es)
Full Year X Quarterly
Half Year Special
DRP applies
Record date 06/04/2023
Ex-Date (one business day before the
Record Date)
05/04/2023
Payment date (and allotment date for
DRP)
20/04/2023
Total monies associated with the
distribution
1

$19,961,364
Source of distribution (for example,
retained earnings)
Retained earnings
Currency NZ Dollars
Section 2: Distribution amounts per financial product
Gross distribution
2
$0.2222222
Gross taxable amount
3
$0.2222222
Total cash distribution
4
$0.16000000
Excluded amount (applicable to listed
PIEs)
$0.00000000
Supplementary distribution amount $0.02823529
Section 3: Imputation credits and Resident Withholding Tax
5

Is the distribution imputed Fully imputed X
Partial imputation
No imputation

1
Continuous issuers should indicate that this is based on the number of units on issue at the date of the form
2
“Gross distribution” is the total cash distribution plus the amount of imputation credits, per financial product, before the deduction of
Resident Withholding Tax (RWT).
3
“Gross taxable amount” is the gross distribution minus any excluded income.
4
“Total cash distribution” is the cash distribution excluding imputation credits, per financial product, before the deduction of RWT.
This should include any excluded amounts, where applicable to listed PIEs.
5
The imputation credits plus the RWT amount is 33% of the gross taxable amount for the purposes of this form. If the distribution is
fully imputed the imputation credits will be 28% of the gross taxable amount with remaining 5% being RWT. This does not constitute
advice as to whether or not RWT needs to be withheld.

If fully or partially imputed, please
state imputation rate as % applied
6

28%
Imputation tax credits per financial
product
$0.06222222
Resident Withholding Tax per
financial product
$0.01111111
Section 4: Distribution re-investment plan (if applicable)
DRP % discount (if any)
%
Start date and end date for
determining market price for DRP
[dd/mm/yyyy] [dd/mm/yyyy]
Date strike price to be announced (if
not available at this time)
[dd/mm/yyyy]
Specify source of financial products to
be issued under DRP programme
(new issue or to be bought on market)

DRP strike price per financial product
$
Last date to submit a participation
notice for this distribution in
accordance with DRP participation
terms
[dd/mm/yyyy]
Section 5: Authority for this announcement
Name of person

authorised to make
this announcement
Grant Ellis
Contact person for this
announcement
Grant Ellis
Contact phone number +64 9 525 8710
Contact email address Grant.ellis@rbd.co.nz
Date of release through MAP

28/02/2023





6
Calculated as (imputation credits/gross taxable amount) x 100. Fully imputed dividends will be 28% as a % rate applied.