Restaurant Brands Third Quarter Sales

16 December 2019 ASX/NZX Restaurant Brands Strong Sales Growth Continues in the Third Quarter Restaurant Brands' total sales for the third quarter of the financial year (12 weeks to 2 December 2019) were $192.0 million, an increase of $10.5 million or 5.8% on the equivalent period last year. Each of the operating divisions (New Zealand, Australia and Hawaii) maintained strong same store sales growth with sales increases of +5.6%, +3.9% and +8.8% respectively. New Zealand operations sales were $99.6 million, up 5.2% in total (despite the partial impact of the sale of the Starbucks Coffee business in October 2018), and up 5.6% on a same store basis. Australian KFC outlets produced sales of $NZ46.5 million, up 6.7% on a total basis and 3.9% on a same store basis (local currency). Hawaiian operations sales were $NZ45.8 million, up 2.7% on a total basis and 8.8% on a same store basis (local currency). Year to date sales were $634.5 million, an increase of 3.6% over the prior year on a total basis. Company store numbers were up by two on the equivalent period last year to 286. KFC New Zealand Third quarter sales for KFC New Zealand were $83.6 million, an increase of 8.3% on the equivalent period last year and up 5.5% on a same store basis for this quarter. Year to date sales for KFC New Zealand were $277.1 million, an increase of 8.0% on a total basis and 5.6% on a same store basis. Store numbers increased by two during the quarter with the opening of stores at WestCity and Newmarket, and increased by five on the prior year with stores opening during the first quarter at Bombay, Courtenay Place and Tauranga Crossing. Pizza Hut New Zealand Third quarter sales for Restaurant Brands-owned Pizza Hut stores were $7.6 million, an increase of 0.8% on the equivalent period last year. Same store sales for the quarter decreased by 3.2%. Year to date sales for Restaurant Brands-owned Pizza Hut stores were $25.9 million, a decrease of 7.4% in total, and down 4.1% on a same store basis. Restaurant Brands-owned store numbers decreased by one during the quarter to 29 stores, and constant with last year. There are now 73 Pizza Hut stores operated by independent franchisees of a network of 102 stores. Network total sales for the quarter were $23.4 million, an increase of 1.2%. Year to date network total sales were $77.0 million, a decrease of 2.5%. Carl's Jr. Total Carl's Jr. sales for the third quarter were $8.0 million, an increase of 15.5% on both a total and same stores basis on the equivalent period last year following the introduction of delivery via the UberEats platform. Year to date sales for Carl's Jr. were $27.0 million, an increase of 10.7% on a total basis and 11.4% on a same store basis. Store numbers remained steady at 18 during the quarter. Taco Bell New Zealand. The first New Zealand Taco Bell store opened in November with strong sales from three weeks of trading of $0.3 million. KFC Australia Third quarter sales for KFC Australia were $A43.7 million ($NZ46.5 million), an increase of 6.7% on a total basis and 3.9% on a same store basis (local currency). Year to date sales for KFC Australia were $A143.1 million ($NZ151.4 million), an increase of 4.9% on a total basis and 5.3% on a same store basis (local currency). Store numbers increased by one to 62 during the quarter with the opening of the Darlinghurst store. Taco Bell Australia Restaurant Brand's first Australian Taco Bell store recently opened in Newcastle during the first week of quarter four. Taco Bell Hawaii Total Taco Bell sales for the third quarter were up to $US17.6 million ($NZ27.7 million) on the back of several successful promotions. This was an increase of 5.4% on a total basis and 13.5% on a same store basis (local currency). Year to date sales for Taco Bell were $US60.1 million ($NZ91.7 million), an increase of 8.4% on a total basis and 13.6% on a same store basis (local currency). Store numbers remained steady at 36 during the quarter. Pizza Hut Hawaii Pizza Hut Hawaii sales for the third quarter were $US11.5 million ($NZ18.1 million), a decrease of 1.2% on a total basis and up 2.3% on a same store basis (local currency). Year to date Pizza Hut Hawaii sales were $US40.0 million ($NZ61.0 million), a decrease of 0.3% on a total basis but up 2.8% on a same store basis (local currency). Store numbers were down two during the quarter to 41 following the expiry of leases on the Hawaii Kai and Kapaa stores, and down four on last year. Full Year Results Following the change in balance date to 31 December the company expects to release its full year trading results in late February 2020. For further information please contact: Russel Creedy Grant Ellis CEO CFO/Company Secretary Phone: +64 9 525 8700 Phone: +64 9 525 8700 ENDS RESTAURANT BRANDS NEW ZEALAND LIMITED Quarterly Sales Report Summary of Results for the 3rd Quarter (Q3) (for the 12 weeks 10/09/19 to 02/12/19) 2019 ($000's) 2018/19 ($000's) Change Total Store Sales ($NZ) Q3 2019 vs Q3 2018/19 KFC New Zealand 83,631 77,213 8.3% Pizza Hut New Zealand 7,627 7,566 0.8% Starbucks Coffee - 2,973 n/a Carl's Jr. 8,034 6,958 15.5% Taco Bell New Zealand 317 - n/a New Zealand 99,609 94,710 5.2% KFC Australia * 46,531 44,270 5.1% Taco Bell Hawaii * 27,702 25,068 10.5% Pizza Hut Hawaii * 18,118 17,460 3.8% Hawaii * 45,820 42,528 7.7% Total Store Sales 191,960 181,508 5.8% YTD 2019 vs YTD 2018/19 KFC New Zealand 277,119 256,477 8.0% Pizza Hut New Zealand 25,936 28,018 (7.4%) Starbucks Coffee - 16,022 n/a Carl's Jr. 27,035 24,419 10.7% Taco Bell New Zealand 317 - n/a New Zealand 330,406 324,936 1.7% KFC Australia * 151,377 147,661 2.5% Taco Bell Hawaii * 91,700 81,183 13.0% Pizza Hut Hawaii * 61,039 58,716 4.0% Hawaii * 152,739 139,899 9.2% Total Store Sales 634,522 612,495 3.6% * - Converted at exchange rates on following page Same Store Sales (Local Currency) Q3 2019 vs Q3 2018/19 KFC New Zealand 80,873 76,671 5.5% Pizza Hut New Zealand 6,419 6,631 (3.2%) Carl's Jr. 8,033 6,957 15.5% New Zealand ($NZ) 95,325 90,259 5.6% KFC Australia ($A) 41,125 39,599 3.9% Taco Bell Hawaii 17,442 15,372 13.5% Pizza Hut Hawaii 11,380 11,120 2.3% Hawaii ($US) 28,822 26,492 8.8% YTD 2019 vs YTD 2018/19 KFC New Zealand 269,251 254,872 5.6% Pizza Hut New Zealand 23,584 24,594 (4.1%) Carl's Jr. 27,014 24,250 11.4% New Zealand ($NZ) 319,849 303,716 5.3% KFC Australia ($A) 137,612 130,703 5.3% Taco Bell Hawaii 59,334 52,213 13.6% Pizza Hut Hawaii 39,448 38,391 2.8% Hawaii ($US) 98,782 90,604 9.0% RESTAURANT BRANDS NEW ZEALAND LIMITED Quarterly Sales Report Summary of Results for the 3rd Quarter (Q3) (for the 12 weeks 10/09/19 to 02/12/19) 2019 ($000's) 2018/19 ($000's) Change Total Store Sales (Local Currency) Q3 2019 vs Q3 2018/19 KFC Australia ($A) 43,662 40,933 6.7% Taco Bell Hawaii 17,647 16,743 5.4% Pizza Hut Hawaii 11,526 11,670 (1.2%) Hawaii ($US) 29,173 28,412 2.7% YTD 2019 vs YTD 2018/19 KFC Australia ($A) 143,120 136,413 4.9% Taco Bell Hawaii 60,060 55,383 8.4% Pizza Hut Hawaii 39,986 40,113 (0.3%) Hawaii ($US) 100,045 95,496 4.8% 2019 2018/19 Change Number Of Stores Open At Quarter End KFC New Zealand 99 94 5 Pizza Hut New Zealand 29 29 - Starbucks Coffee - - - Carl's Jr. 18 18 - Taco Bell New Zealand 1 - 1 New Zealand 147 141 6 KFC Australia 62 62 - Taco Bell Hawaii 36 36 - Pizza Hut Hawaii 41 45 (4) Hawaii 77 81 (4) Total Stores 286 284 2 Exchange Rates - Blended $A:$NZ rate for Q3 0.938 0.925 0.014 - Blended $A:$NZ rate for YTD 0.945 0.924 0.022 - Blended $US:$NZ rate for Q3 0.637 0.668 (0.031) - Blended $US:$NZ rate for YTD 0.655 0.683 (0.028) Note: Some sales numbers for each of the concepts may not aggregate in total due to rounding. End CA:00346073 For:RBD Type:MKTUPDTE Time:2019-12-16 10:10:32