Restaurant Brands buys Hawaiian business

Restauraunt Brands is buying a Hawaiian business for $US105 million ($NZ146.5 million) to be funded through a combination of US dollar debt and new equity.

Pacific Island Restaurants was the franchisee of Taco Bell and Pizza Hut in Hawaii.

Forsyth Barr broker Suzanne Kinnaird said Restaurant Brands was once again acquiring a well-performing business. However, it was much further afield than its New Zealand business, and recent Australian acquisition, and brought considerable risk.

Suzanne Kinnaird.
Suzanne Kinnaird.

''We see limited synergy opportunities, with Restaurant Brands referring to the acquisition as the 'next stage of RBD's growth platform'. There is potential for other bolt-on acquisitions and a plan to progressively refresh the existing store base.''

The company had been looking at Taco Bell for some time, she said. The acquisition was ''very surprising'' given the geographic location and proximity - or lack of it - to current operations.

Restaurant Brands chief executive Russel Creedy said Pacific Island Restaurants was the largest quick-service restaurant operator in the state, with 82 stores.

The company operated all of the Taco Bell and Pizza Hut restaurants in Hawaii, Guam and Saipan. It had a turnover of $US102 million ($NZ142.5 million) and a store level operating profit of more than $US19 million.

Restaurant Brands, which operated the KFC, Pizza Hut, Starbucks Coffee and Carl's Jr stores in New Zealand, reported an operating profit of $45.3 million for the 28 weeks ending September 12, up 26% on the previous corresponding period.

The reported profit of $13.5 million was up 0.7% on the pcp. Group sales of $256.2 million were up 22%. Sales were up 22% to $256 million.

The interim dividend of 9.5c per share was up 1cps or 11.8%.

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