Solution - RestaurantBrand - Restaurant Brands New Zealand...

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Restaurant Brands New Zealand Ltd. Report on Report on Restaurant Restaurant Brands New Brands New Zealand Zealand Limited Limited 1
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Restaurant Brands New Zealand Ltd. Company Overview Introduction Restaurant Brands operates in New Zealand and operates the nation wide outlets of KFC, Starbucks Coffee and Pizza Hut. The company started its operations in 1997 and initially started with Pizza Hut and KFC. The company originally purchased 77 KFC stores and 43 Pizza Hut stores and since then the numbers are growing at a steady pace. In the year 1998, the company also included Starbucks in its franchisee. The company has come has come a long way ever since its major expansions in the year 2000. The company is listed on the New Zealand Stock Exchange and its ticker symbol is RBD. Here is the snapshot of the company: Company Name Restaurant Brands New Zealand Limited Ticket RBD Exchanges NZL 2009 Sales NZD 309.1 Million Major Industry Recreation Sub Industry Country New Zealand Employees 7000 Key Personnel 1. Russel Creedy – CEO 2. Danny Diab – Director 3. Grant Ellis – CFO 4. Ted Van Arkel – Independent Director 5. Suzanne Suckling – Independent Director 6. David Pilkington – Independent Director Fiscal Year Ends February Share Type Ordinary Shares Outstanding 97,273,060 Total Assets NZD 101.1 million Company Segmental Analysis The company has three main segments – Pizza Hut, Starbucks Coffee and KFC. The year 2009 has been a good year for Restaurant Brands and the company has been able to achieve the $300 million mark for the first time since its inception. Let us discuss the various segments of the company. KFC Kentucky Fried Chickens has been the start performer of the company and is also responsible for the approximately 70% of the total revenues of the company and about 90% of the total firm’s profits. Now, since the difficult times of recession are over, the company is anticipating the expansion its KFC business. The company is also planning to introduce a whole lot of new products in the KFC to retain and increase the customers. In the previous year ended 2009, the KFC has managed $211.5 million sales which is 6.2% higher than the last year sales and same Store Sales (SSS) has seen an improvement of 4.1% over the previous year. The EBITDA has also increased from $36 million in 2008 to $38 million in 2009, there by registering an increase of 5.8%. The company in the KFC operations has spent 2
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Restaurant Brands New Zealand Ltd. less than the previous years due to the constraints on the economic conditions. In the year 2009, the company had spent $4.6 million which is decreasing ever since 2007. The company has been able to sustain the percentage of EBITDA in relation to sales at 18%. On a whole this section of the company looks good and the company is quite optimistic about the same as well and plans to invest some more money in this section by opening new outlets. The company has the following projected policies for the future operations in respect of KFC:
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This note was uploaded on 05/13/2010 for the course MECH 17657 taught by Professor Ravikant during the Spring '10 term at Indian Institute of Technology, Delhi.

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Solution - RestaurantBrand - Restaurant Brands New Zealand...

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