Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


McDonald’s NZ annual sales rise 5.8%

McDonald’s NZ lifts annual sales by 5.8% in year of Georgie Pie relaunch

By Jonathan Underhill

April 22 (BusinessDesk) – McDonald’s Restaurants (New Zealand), the local arm of the world’s largest fast food chain, had a 5.8 percent gain in sales in 2013, the year it relaunched the Georgie Pie brand after a decade-long hiatus.

Sales were $216.6 million in calendar 2013, up from $204.7 million a year earlier, according to the local unit’s annual report. Profit for the year barely budged at $30.7 million as the company opened new stores, spent more on raw materials and wages, and paid more tax.

McDonald’s has 163 restaurants in New Zealand, of which about 80 percent are owned and operated by franchisees. As well as sales from its own outlets, the company garners monthly service and franchise fees, a contribution to advertising and rental payments, all based on a percentage of gross sales, from franchisees.

“McDonald’s and our 53 New Zealand franchisees largely enjoyed a positive 2013, buoyed by the launch and roll out of Georgie Pie,’ Patrick Wilson, McDonald’s New Zealand managing director, told BusinessDesk.

McDonald's bought the Georgie Pie chain from Progressive Enterprises in 1996 before closing it in 1999. In the relaunch it is rolling out sales of pies in its existing restaurants.

The parent company today posted a 5.5 percent decline in net profit to US$1.2 billion in the three months ended March 31 as sales climbed 0.5 percent to US$6.7 million. Its NYSE-listed shares last traded at US$99.32, valuing the company at US$98 billion, and have gained 83 percent in the past five years, lagging behind the Standard & Poor’s 500 Index’s 123 percent increase.

The first McDonald’s restaurant in New Zealand was opened in Porirua in 1976. Currently more than 9,000 people work for McDonald’s in New Zealand and the business spent $170 million with local suppliers. Worldwide, McDonald’s restaurants bough $465 million of food products from New Zealand producers in 2013, the company said.

The restaurants buy their supplies from the local arm of US distribution firm Martin Brower, which has been supplying the chain for 50 years.

For McDonald’s NZ itself, the cost of raw materials and consumables rose to $43.5 million in 2013, from $40.3 million a year earlier. Wage costs rose to $46.6 million from $42.4 million.

According to its website, would-be franchisees need to have about $650,000 of cash to invest and must commit to a full-time, unpaid training programme of up to 12 months as part of a registration process. The minimum equity investment in a new restaurant is 40 percent of the “total equipment/décor package”.

In addition, McDonald’s requires an upfront franchise fee of $75,000 with a $25,000 security deposit. The approximate cost of kitchen equipment, signage, seating, décor, air conditioning and landscaping, paid to suppliers is about $1.5 million. The franchise term is 20 years.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Inequality: Top 10% Of Housholds Have Half Of Total Net Worth

The average New Zealand household was worth $289,000 in the year to June 2015, Statistics New Zealand said today. However wealth was not evenly distributed, with the top 10 percent accounting for around half of total wealth. In contrast, the bottom 40 percent held 3 percent of total wealth. More>>

ALSO:

What Winter? Temperature Records Set For June 20-22

The days around the winter soltice produced a number of notably warm tempertaures. More>>

Conservation Deal: New Kākāpō Recovery Partnership Welcomed

Conservation Minister Maggie Barry says the new kakapo recovery partnership between DOC and Meridian Energy is great news for efforts to save one of New Zealand’s most beloved birds. More>>

ALSO:

Tech Sector Report: Joyce Warns Asian Tech Investors View NZ As Hobbits And Food

Speaking in Wellington at the launch of a report showcasing the value of the technology sector to the New Zealand economy, Joyce said more had to be done to tell the country's technology stories overseas. More>>

ALSO:

Mediaglommeration: APN Gets OIO Approval For Demerger Plan

APN News & Media has received Overseas Investment Office approval for its plan to split out its NZME unit ahead of a potential merger with rival Fairfax Media's New Zealand operations. More>>

New Paper: Ninety-Day Trial Period Has No Impact On Firms' Hiring

The introduction of a 90-day trial period has had no impact on hiring by New Zealand companies although they are now in widespread use, according to researchers at Motu Economic and Public Policy Research. More>>

ALSO:

Corrections: Serco Exits Equity Stake, Remains As Operator

Serco has sold its equity stake in the company that holds the contract to design, build and run Wiri Prison in South Auckland but continues as sub-contractor to operate the facility. More>>

GDP: NZ Economy Grows Faster-Than-Forecast 0.7%

New Zealand's economy grew at a faster pace than expected in the first quarter of 2016 as construction expanded at the quickest rate in two years. The kiwi dollar jumped after the data was released. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news