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>We upgrade Restaurant Brands (RBD) to NEUTRAL from UNDERPERFORM. </li><li>RBD's 4Q23 trading update reiterated FY23 NPAT guidance of NZ$12m to NZ$16m, suggesting a strong recovery in 2H23 margins and providing some reassurance that input cost pressures may be past their peak.</li><li>While near-term risks remain elevated, including signs of weakening Australian consumer demand, minimum wage increases in California (from April), and the two KFC class action lawsuits in Australia, these are somewhat mitigated by improving gross margins and consumer sentiment in RBD's core New Zealand market. </li></ul>

We upgrade Restaurant Brands (RBD) to NEUTRAL from UNDERPERFORM. RBD's 4Q23 trading update reiterated FY23 NPAT guidance of NZ$12m to NZ$16m, suggesting a strong recovery in 2H23 margins and providing some reassurance that input cost pressures may be past their peak.While near-term risks remain elevated, including signs of weakening Australian consumer demand, minimum wage increases in California (from April), and the two KFC class action lawsuits in Australia, these are somewhat mitigated by improving gross margins and consumer sentiment in RBD's core New Zealand market. 

Restaurant Brands NZ - Back in the Kitchen — Upgrade to NEUTRAL