Fast food operator Restaurant Brands will not pay a final dividend for FY19. Instead, it is going to retain the money to fund its expansion plans.
The company said it is facing considerable demands on its funding resources, as its expansion strategy starts to accelerate.
The directors believe it is in the best interests of this group to retain cash to offer funding flexibility, Restaurant Brands said in a press release.
“They have therefore resolved not to pay a final dividend for the FY19 year.”
Part of the corporation’s expansion strategy is to roll out 60 Taco Bell stores in Australia and New Zealand within the next five decades, together with accelerated levels of KFC store setups in both markets.
That is just shy of the $43-45 million advice at last year’s annual meeting.
It posted a 5.4 per cent increase in joint brand EBITDA of $129.2 million, primarily driven by the full-year effect of the Australian shops acquired during FY18.
Restaurant Brands’ disposed of its Starbucks Coffee companies in October last year as part of a fresh portfolio rationalisation.
The company said the consistent performance of its current store network, the advantage of new-store structures and a stable financial environment would help deliver an increase in NPAT for the new year.