The share price for Restaurant Brands New Zealand Limited has surged by over 3% this morning. This comes on the back of an announcement that the Taco Bell chain is finally coming to the country.
Restaurant Brands owns the franchising rights to a variety of international fast-food brands in New Zealand, including KFC, Pizza Hut, and Carl’s Jr.
Restaurant Brands share price currently sits at $8.55, and the company has a market capitalisation of $1.05 billion.
Why the increase in performance?
This morning, following years of rumours, Restaurant Brands announced they were bringing Tex-Mex chain Taco Bell to New Zealand.
It was confirmed that they acquired the franchising rights in April.
Restaurant Brands plans to introduce 60 Taco Bell stores between January 2019 and June 2024.
What’s next for the [NZX:RBD] share price?
Taco Bell already has huge cultural awareness in New Zealand. So franchising Taco Bell appears to be a favourable move for Restaurant Brands.
This venture also comes with some earned confidence – internationally, Restaurant Brands already has experience operating the Taco Bell chain through their Hawaiian, Guam, and Saipan-based branches.
We anticipate that this new franchise rollout to be a buoyant factor for Restaurant Brands. Much like their earlier introduction of the Carl’s Jr. chain to the Kiwi market, this move has invigorated investor interest.
This buoyant sentiment could encourage an upward swing in the [NZX:RBD] share price for the immediate future.
Editor, Money Money New Zealand