Retail Food Group launches US fast food brand as profits soar
Australian food and beverage business Retail Food Group (ASX: RFG) has delivered a strong set of numbers in the first half of the 2025 financial year (H1 FY25), showcased by a significant jump in revenue and profit.
The company is also set to launch the Firehouse Subs premium sandwich brand in Australia with plans to open 165 outlets across our nation over the next decade.
Robust financial performance
In H1 FY25, underlying reven... moreRetail Food Group launches US fast food brand as profits soar
Australian food and beverage business Retail Food Group (ASX: RFG) has delivered a strong set of numbers in the first half of the 2025 financial year (H1 FY25), showcased by a significant jump in revenue and profit.
The company is also set to launch the Firehouse Subs premium sandwich brand in Australia with plans to open 165 outlets across our nation over the next decade.
Robust financial performance
In H1 FY25, underlying revenue of $66.5 million grew by 24.7 per cent from the previous corresponding period time as total network sales of $257.1 million ticked up by 3.2 percent. This was supported by a strong performance from the group’s core brands such as Gloria Jean’s, Donut King, Brumby’s, and Beefy’s.
In turn, underlying operating earnings (EBITDA) increased by 15.8 per cent from the previous half-year and were up 4.2 per cent from the same time last year.
Statutory net profit after tax (NPAT) surged by nearly 74 per cent year-on-year to reach $7.3 million in H1 FY25.
Operational optimisation
On an operational level, the company continued to optimise its store network with the opening of 25 new outlets and the closure of 17 underperforming stores. The acquisition of CIBO Espresso – which settled at the tail end of 2024 – contributed an additional 22 outlets in H1 FY25.
Management noted that new store openings outperformed closures by 35 per cent in average weekly sales. It expects further improvement to the group’s overall network quality in future reporting periods.
Firehouse Subs expansion
Notably, Retail Food Group is set to introduce the Firehouse Subs premium sandwich brand into Australia after entering a 20-year development agreement with Restaurant Brands International. The deal includes a commitment to open 165 restaurants over the next decade with the first location set to launch in the first half of FY26.
Management estimates the value of the sandwich category in Australia at more than $1.7 billion and growing, with only a single national chain competitor in the market. It believes such traits represent an attractive opportunity for expansion compared to other food categories.
To fund rapid growth of Firehouse Subs in Australia, the company has committed to investing US$4 million for each of the first three years of the agreement. It intends to boost this number to US$5 million in years four to six.
Retail Food Group chief executive officer, Matt Marshall, commented:
“Alongside an excellent set of interim results, we are excited to announce our agreement with Restaurant Brands International (RBI) to introduce their fast-growing sandwich brand Firehouse Subs into Australia. Firehouse Subs is a key pillar of our ambitious growth strategy and we are confident consumers will be excited by the brand’s high-quality sandwich product together with an excellent guest experience”.
Established brand
Firehouse Subs has spread its wings to more than 1,300 locations across North America since its founding in Florida more than three decades ago. In recent years, it has been expanding to overseas markets such as Switzerland, Mexico, the United Arab Emirates, Albania, and Brazil.
Management believes the Firehouse Subs network boasts industry leading products, coupled with an evolved brand concept which stands apart from the competition. This includes product and guest experience.
Growth initiatives
Looking ahead, Retail Food Group is focused on enhancing its core brands by prioritising retailing excellence and technology to grow to at least 200 domestic outlets for each brand.
It also aims to scale its network of core brands domestically including the introduction of Firehouse Subs into Australia. In addition, the company is pursuing international opportunities for its Gloria Jean’s and Donut King franchises.
