Restaurant Brands New Zealand (ASX:RBD) has announced that shareholders will not receive dividends for the fiscal year 2023, following a significant downturn in earnings. Despite the company's initial optimism, reflected in an estimated profit of $NZ16.3 million disclosed in its December full-year sales report, the actual figure reported in late January matched this projection, disappointing investors.
RBNZ had boasted of achieving record-high sales totaling $1,322 million for the year, with positive same-store sales across all regions except California. However, the subsequent full-year report revealed a stark contrast, showing a nearly halved profit compared to the previous year.
José Parés, the Chair of Restaurant Brands New Zealand Limited, attributed this decline to inflationary pressures affecting ingredient costs and wages, compounded by underperformance in specific regions such as California and New Zealand. Despite these challenges, Parés emphasized that the company remains committed to delivering value to its shareholders over the long term.
In response to the margin pressures, RBNZ implemented a strategic program involving price increases and cost control measures, which proved successful in the latter half of the fiscal year. Parés highlighted the company's pricing strategy, which seeks to balance the need to mitigate inflation while preserving sales volume and brand integrity.
Despite the setbacks faced in FY23, Parés expressed confidence in RBNZ's strategic direction and its ability to navigate challenges effectively. The company remains steadfast in its commitment to providing continued long-term shareholder value, reaffirming its position in the market despite the hurdles encountered in the past year.
