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Highlights

  • The company focuses on margin recovery and profitability via innovation and digital transformation by launching new products, revamping menus, and increasing digital sales.
  • RBD targets NZD 2 billion in group store sales as part of its growth plan.
  • RBD’s share price has increased by nearly 44% in the last six months.

Restaurant Brands New Zealand Limited (NZX: RBD) is a corporate franchise with specialisation in management of multi-site branded food retail chains. The company is engaged in the operation of quick service and takeaway restaurant concept.

The company demonstrated resilience by advancing its growth strategy despite tough market conditions. It is focused on margin recovery and driving profitability through innovation and digital transformation.

RBD is actively launching new products, revamping menus, and investing in digital channels, all while increasing digital sales and enhancing its marketing efforts. Through technological advancement, network expansion, and delivering cutting-edge, digital-first QSR (Quick Service Restaurant) brands, the company intends to position itself for the next phase of growth.

RBD is targeting NZD 2 billion in group store sales as part of its ambitious growth plans.

Food Prices on the Rise: Impact and Implications

Stats NZ reports that food prices increased by 1.5% in the 12 months ending December 2024, following a 1.3% rise in November 2024. This rise was driven by higher prices in grocery food as well as restaurant meals and ready-to-eat foods, which climbed by 2.7% and 3.1%, respectively. Key contributors to the grocery price increase included staples like butter, 2L milk, and olive oil.

Despite the general increase in food costs, fruit and vegetable prices saw a significant decline, falling 8.0% in the same period. This reduction was attributed to lower prices for items such as kūmara, potatoes, and onions, providing some relief for consumers amidst overall food price inflation.

Economic Outlook: New Zealand’s GDP Performance

New Zealand’s GDP saw a 1.0% decline in the September 2024 quarter, following a revised 1.1% drop in the June 2024 quarter, according to Stats NZ. The decline in GDP was largely driven by a downturn in 11 of the 16 industries comprising the production measure of GDP. Notably, sectors such as manufacturing, business services, and construction experienced the largest decreases.

However, some industries showed resilience, particularly primary industries like agriculture, as well as sectors such as rental, hiring, and real estate services. This divergence signals that while certain industries are struggling, others are performing well, contributing to a mixed economic outlook.

RBD’s Strategic Position in a Shifting Economic Landscape

As New Zealand faces economic challenges, Restaurant Brands continues to position itself for future growth. Despite rising food prices and a challenging GDP performance, RBD’s focus on innovation, digital transformation, and network expansion is setting it up for long-term success.

Share performance of RBD

RBD shares closed at NZD 4.21 per share on 16 January 2024. Over the past year, RBD’s share price has increased by almost 10%and in the past six months, it has increased by nearly 44%.

52-week high of RBD is NZD 4.32, recorded on 14 January 2025 and 52-week low is NZD 2.43, recorded on 12 July 2024.

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is January 16, 2025. The reference data in this report has been partly sourced from EODHD/Others.