Compare equities side by side
Stocks breaking to new annual highs
S&P 500 oversold value screener
Relative strength momentum leaders
Upcoming earnings dates & reports
Filter and sort all 500 stocks
Today's biggest gainers and losers
Visual sector performance
Restaurant Brands New Zealand operates quick-service restaurant franchises across New Zealand, Australia, and Hawaii, primarily under the KFC, Pizza Hut, Carl's Jr., and Taco Bell brands. The company manages approximately 300+ stores with a mix of company-owned and franchised locations, generating revenue through retail sales and franchise fees. Recent 76% six-month stock surge reflects operational turnaround efforts despite flat revenue growth and elevated leverage (3.04x D/E).
Operates as a master franchisee for Yum! Brands and CKE Restaurants, earning margins on retail sales at company-owned stores and collecting royalties from sub-franchisees. The 12.1% gross margin reflects high food and labor costs typical of QSR operations. Profitability depends on same-store sales growth, labor efficiency, and real estate optimization. Limited pricing power due to value-focused positioning in competitive markets, though brand strength (particularly KFC in New Zealand/Australia) provides customer loyalty. Scale advantages in purchasing and marketing across 300+ locations.
Same-store sales growth across KFC and Pizza Hut networks - primary indicator of operational health
Store rationalization and closure announcements - impacts profitability trajectory given negative operating margins
NZD/AUD exchange rate movements - affects cross-border earnings translation and purchasing costs
Labor cost inflation in New Zealand and Australia - minimum wage increases directly impact store economics
Franchise agreement renewals and territory expansion - signals long-term growth potential
Digital delivery disruption - third-party platforms (Uber Eats, DoorDash) capture 25-30% commissions, pressuring already-thin margins while becoming essential for traffic
Minimum wage escalation in New Zealand and Australia - both countries have aggressive wage floor increases (NZ minimum wage NZ$23.15 as of 2026), with labor representing 25-30% of sales
Master franchise agreement dependency - termination or unfavorable renegotiation of Yum! Brands agreements would be existential
Intense QSR competition from McDonald's, Subway, and local chains in small New Zealand market (5M population) limits pricing power
Shift to fast-casual dining - consumers trading up to Chipotle-style concepts or down to grocery meal solutions, hollowing out traditional QSR
Brand fatigue for legacy Pizza Hut concept - declining relevance versus Domino's digital-first model
High leverage (3.04x D/E) with negative operating margins creates refinancing risk if turnaround stalls
Weak current ratio (0.46x) indicates potential liquidity stress - may need to draw revolvers or raise equity
Store lease obligations represent significant off-balance-sheet commitments, likely 5-7x annual rent expense
Deferred maintenance or underinvestment risk given capital constraints - could accelerate comp sales decline
high - QSR traffic highly correlated with consumer discretionary spending and employment levels. While positioned as value dining, NZ$15-20 average tickets still compress during recessions. Tourism flows to New Zealand (pre-COVID representing 15-20% of some store traffic) amplify cyclicality. 63% net income growth suggests recovery from prior weakness, but flat revenue indicates volume challenges persist.
Elevated 3.04x debt-to-equity makes the company sensitive to refinancing costs and covenant compliance. Rising rates increase interest expense on what appears to be variable-rate debt (common for regional franchisees). Additionally, higher rates reduce consumer discretionary spending and housing wealth effects in New Zealand/Australia markets. The 0.46x current ratio suggests limited liquidity buffer.
Moderate - relies on trade credit from suppliers and needs access to working capital facilities for inventory and payroll. Tight liquidity (0.46x current ratio) means credit conditions affect operational flexibility. Franchise agreements likely require maintaining certain financial covenants.
value/turnaround - 76% six-month rally suggests special situations investors betting on operational restructuring. 21.5% FCF yield and 0.6x P/S indicate deep value, but negative operating margins deter quality-focused buyers. High leverage (3.04x) and 0.46x current ratio create binary outcome profile attractive to distressed/activist investors. Not suitable for income investors despite consumer staples characteristics.
high - Small-cap ($400M market cap) with illiquid trading, elevated leverage, and turnaround uncertainty creates 30-40% annual volatility. Recent 76% six-month move demonstrates momentum characteristics. Currency exposure (NZD/AUD) adds 10-15% volatility. Operational leverage to comp sales means 2-3% sales swings translate to 15-20% earnings moves.
