Restaurant Brands completes sale of Starbucks Coffee

StarbucksRestaurant Brands New Zealand has completed the sale of its assets and stock of the Starbucks Coffee licence to Tahua Capital for $4.4 million after opting to not renew its licence agreement in early September.

During the business’s recently reported first half results, Starbucks Coffee saw a 2.8 per cent decline in sales compared to the prior corresponding period, as well as a 7.5 per cent drop in earnings.

“As Restaurant Brands has increasingly pursued a growth strategy with a much stronger emphasis on its core quick service restaurant brands, the Starbucks Coffee business has less relevance to its core activities,” the half yearly report said.

The sale is expected to have a minor adverse impact of approximately $1.3 million on the group’s earnings for the second half of the year, which will have a slight impact on the forecasted NPAT of $43-45 million for the 2019 financial year.

Restaurant Brands New Zealand announced it has received a proposal of up to 75 per cent of its shares by way of a partial takeover by Finaccess Capital.

The offer was revealed after Restaurant Brands posted a 7 per cent increase in group net profit after tax in the first half of FY19 to $20.4 million, up from $19.1 million in the prior corresponding period.

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