New Zealand Professional Investment Services Firm

Forsyth Barr

We are proud to be a New Zealand owned firm, with 21 offices throughout the country and over 300 employees. We assist personal, institutional and corporate clients providing a full range of investment services.

Forsyth Barr is a foundation New Zealand Exchange firm (NZX) and accredited market participant. We have been confirmed by the Financial Markets Authority as a Qualifying Financial Entity (QFE).

Research is the cornerstone of our advice. We have one of New Zealand's leading teams of analysts. Our global affiliations ensure comprehensive research coverage of all major investment markets.

New Zealand Professional Investment Services Firm, Forsyth Barr

Equity Bottom-Up

<ul><li>Restaurant Brands (RBD) has released a disappointing 1H23 result which was below our and consensus expectations. Key negatives included (1) significant ingredient cost inflation impacting EBITDA margins, particularly in the core NZ market, (2) difficulty raising prices without impacting sales volume as consumers appear to be more price-sensitive across all markets, and (3) higher expenses across non-operating items including depreciation and interest.</li><li>RBD reiterated its FY23 NPAT guidance range of NZ$12m to NZ$16m, implying a significant uplift in 2H23 profitability is required to meet guidance.</li><li>Our FY23 NPAT forecast is ~NZ$10m. This reflects our view that challenging macro-economic conditions and cost pressures are likely to persist over the next six months. </li></ul>

Restaurant Brands (RBD) has released a disappointing 1H23 result which was below our and consensus expectations. Key negatives included (1) significant ingredient cost inflation impacting EBITDA margins, particularly in the core NZ market, (2) difficulty raising prices without impacting sales volume as consumers appear to be more price-sensitive across all markets, and (3) higher expenses across non-operating items including depreciation and interest.RBD reiterated its FY23 NPAT guidance range of NZ$12m to NZ$16m, implying a significant uplift in 2H23 profitability is required to meet guidance.Our FY23 NPAT forecast is ~NZ$10m. This reflects our view that challenging macro-economic conditions and cost pressures are likely to persist over the next six months. 

Restaurant Brands NZ - 1H23 Result — From Sizzle to Fizzle