Restaurant Brands' first-half underlying profit has risen 14.4 per cent to $NZ25 million ($A20.3 million), helped by a jump in sales from the fast food franchisor's New Zealand KFC stores.
Sales from Restaurant Brands' 61 Australian KFC outlets rose 4.2 per cent to $A99.5 million, which the company says was in part due to store upgrades and digital channels.
Sales for the 28 weeks to September 9 at its 103 New Zealand KFC stores were up 7.9 per cent to $NZ193.5 million ($A180.5m), as the company opened three more stores and further rolled out food delivery.
The firm was hit by a downturn at its NZ Pizza Hut restaurants due to competition from other stores and food delivery services but, once one-off items and the effect of changed accounting standards have been stripped out, Restaurant Brands said it had performed strongly and expected that to continue through the remainder of FY20.
Restaurant Brands said it would open two Taco Bells stores in NSW this calendar year, in Blacktown and the Newcastle suburb of Jesmond, the first of more than new 60 Taco Bell stores it plans to open in Australia and New Zealand over the next five years.
"This combined with potential further acquisitions and the refurbishment programme in Hawaii now picking up place, is beginning to place significant demands on the capital resources of the company," Restaurant Brands said.
"Therefore the directors have resolved there will be no interim dividend for FY20."
At 1219 AEDT, Restaurant Brand ASX-listed shares were flat at $8.80.
RESTAURANT BRANDS' H1 PERFORMANCE
* Revenue up 2.9pct to $NZ485.7m
* Net profit down 2.0pct to $NZ20m
* Underlying profit up 14.4pct to $NZ25m
* No interim dividend