Fast food operator Restaurant Brands (RBD) expects to report a lower-half year profit due to global inflation pressures and Covid-19 absenteeism.
The company put down the low profits to worldwide inflation and staffing issues due to Covid-19. Photo: 123rf
The company, which operates the KFC, Pizza Hutt, Taco Bell and Carl's Jr brands, said in a trading update that its net profit for the six months ended June would be between $14 million and $16m, compared with a $35.4m profit a year ago.
Last year's result included a $11.4m one-off gain associated with wage subsidies it received in Hawaii.
RBD said it had had to raise prices in response to increased costs.
"Worldwide inflationary pressures have resulted in the company experiencing significant cost inflation across all regions.
"Covid-19 continues to affect Restaurant Brands' business operations, with high case numbers resulting in staffing issues for the business as well as its contractors and suppliers."
The company managed to lift its revenue amid the price pressures.
Total sales for the year to date increased by 8.2 percent on a year ago to $584.9m, which was supported by the opening of 17 new stores and a strengthening US dollar.
The firmer greenback meant that the company's US sales were higher when they were converted back into New Zealand dollars.
RBD saw broad-based sales growth across its New Zealand, Australia, California and Hawaii markets.
