Retail Food Group announces mixed results in investor update

Beefy’s and Gloria Jean's performed well, but other brands remained challenged.

Retail Food Group’s network sales remain flat as growth from the core of its cafe, coffee, and bakery brands is offset by the weakness in its quick-service restaurant segment.

From the 10 months to April 2024, network sales were flat at $417m, with an immaterially down of $1m or 0.7% on the Prior Comparative Period (PCP) improved from 1.7% at the end of December.

Average transaction value is up by 4.9% PCP to $12.78 at the end of April. Same-store sales also went up by 1.6% PCP.

RFG’s trading outlets are at 744, up 45 since 30 June 2023. According to RFG, it is delivering domestic net outlet growth for the first time in recent years.

Cafe, coffee, and bakery division performance

The Cafe, Coffee, and Bakery (CCB) brands of RFG saw domestic network sales increase by 1.7% to $297m on PCP whilst same-store sales went up by 3.4% to $276m for the 43 weeks ending 26 April 2024.

RFG said its customer count continues to be impacted by FY2023 outlet closures and lower foot traffic in malls in a tougher economic environment.

“Our brands have been resilient in the face of tough retail conditions and have taken advantage of seasonal improvements, e.g. school holidays and Easter with higher network sales,” RFG said.

QSR remains challenged

Meanwhile, domestic network sales for QSR brands such as Crust, Pizza Capers, and Rack’em Bones BBQ Ribs reached $120m, down by 6.3%. Same-store sales were at $114m, down by 3.1%.

The same Store Sales were down $8.2m in pizza brands, offset by $4.5m in sales through its virtual brand Rack’em Bones. RFG said the next phase of growth will come from the release of a direct-to-customer eComm site in H2 2024, expanding Rack’em Bones beyond UberEats.

Beefy’s strong performance

RFG saw strong performance from its recently acquired brand Beefy’s Pies.

Post-acquisition, domestic network sales increased by 7% to $6m PCP, with average weekly sales of $33.5k.

RFG said that Beefy’s contributed an unaudited EBITDA of approximately. $1m and is tracking in line with its acquisition case expectations.

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RFG expects its FY 2024 results to be within its guidance range.