RFG delivers FY26 earnings within guidance as transformation drives 20.9% second-half EBITDA lift
In its FY26 results presentation dated 26 August 2026, Retail Food Group Limited detailed a full-year result that landed within guidance while pointing to accelerating momentum in the second half.
Management reported Underlying EBITDA of $20.3m, sitting inside the guidance range of $20.0–21.0m, with the standout being 2H26 Underlying EBITDA up 20.9% versus 1H26 as transformation benefits began to emerge.
RFG, described as Australia’s largest multi-brand retail food franchise manager, positioned FY26 as a completed transformation year set against challenging retail conditions, including cost-of-living pressures and historically low consumer confidence. Its brands span Gloria Jean’s, Donut King, Brumby’s Bakery, Crust Gourmet Pizza and Beefy’s Pies. The narrative outlined a reset year, with emerging momentum heading into FY27.
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FY26 financial results at a glance
The presentation framed FY26 as a year of full-year declines against the prior comparative period (PCP), offset by a clear recovery in the second half. Underlying EBITDA and NPAT fell as the transformation year and difficult trading weighed on results, yet Statutory NPAT swung to a profit.
The clearest turnaround signal was Statutory NPAT of $1.1m, up from a -$14.9m loss in the PCP, a swing of +107.5%.
| Metric | FY26 | Change vs PCP |
|---|---|---|
| Domestic Network Sales | $489.5m | -3.1% |
| Underlying Revenue | $99.6m | -3.0% |
| Underlying EBITDA | $20.3m | -31.4% |
| 2H26 Underlying EBITDA | $11.1m | +20.9% vs 1H26 |
| Underlying NPAT | $7.8m | -41.8% |
| 2H26 Underlying NPAT | $4.4m | +25.4% vs 1H26 |
| Statutory NPAT | $1.1m | +107.5% (from -$14.9m) |
| Domestic Outlets | 665 | -29 vs Dec 25 |
For investors, the combination of guidance being met plus accelerating half-on-half momentum supports a case for execution credibility, even as headline full-year comparisons reflect the reset.
RFG’s 1H26 results showed the transformation programme at an earlier stage, with same-store sales up 0.2% and the company store reset approximately 70% complete, providing the baseline from which the 20.9% second-half EBITDA lift was subsequently delivered.
Inside the transformation: how RFG reset its operating model
The transformation was built on three pillars: Cost Rationalisation, Operational Enhancement and Structural Alignment. Management detailed how each contributed to a simpler operating model designed to improve store economics and support network growth.
Key outcomes across the programme included:
- Business right-sized, with South East Queensland offices consolidated at Robina HQ
- Initial Transformation Program savings of $2.3m in FY26
- Company store reset with 74% of relevant outlets exited, closed, transitioned to a Franchise Partner, or agreed for sale, reducing recurring trading cash outflows by $1.5m
- A new brand-aligned operating model implemented at the end of Q4 FY26, with each core brand led by an Executive General Manager
The presentation noted the Board has resumed the process to appoint a CEO to lead RFG’s next phase of execution and growth. Peter George will continue as Executive Chairman while this process is undertaken.
Educational — what “franchise manager” economics mean for investors
RFG operates as a franchise manager rather than a direct store operator. It earns Franchise Related Income alongside coffee and pie manufacturing and distribution revenue. The core lever is Franchise Partner profitability: healthier partners drive network sales, lower churn and support network growth.
Three metrics help investors read performance. Same Store Sales (SSS) measures growth from outlets open across comparable periods, stripping out the effect of openings and closures. Average Weekly Sales (AWS) tracks the typical weekly revenue per outlet, a proxy for network health. Network Sales captures total sales across the entire franchise network.
RFG also holds the exclusive licence to grow Firehouse Subs restaurants in Australia. Improving Franchise Partner unit economics forms the foundation of the earnings recovery management is targeting.
Brand momentum: growth pockets emerging across the portfolio
Several brands showed signs of recovery through FY26 and into early FY27:
- Gloria Jean’s – the new ‘Glorange’ format had 10 outlets trading, with AWS +19% over the first 8 weeks post-refurbishment versus PCP; 5 further refreshes are agreed for 1H27.
- Crust – Network Sales rose +3.1% (versus -1.6% PCP), SSS +0.3%, and customer count +3.2%.
- Beefy’s – Network Sales grew +11.9% and Underlying Revenue reached $23.5m (+10.9%), though Underlying EBITDA of $2.9m was down 15.1% as newer stores in new geographies ramp up.
- Donut King posted early FY27 SSS of +0.3% (first 8 weeks), while Brumby’s delivered SSS of +0.9% (first 8 weeks, versus -0.8% PCP).
At a segment level, QSR SSS returned to growth at +0.7%, while CCB SSS was -1.3%, impacted by challenging retail trading conditions.
Firehouse Subs launch signals new growth engine
Management detailed the launch of Firehouse Subs as a forward growth driver. The first Australian store opened at Westfield Mount Gravatt, Brisbane, in 4Q26 (June FY26), with early trading described as very strong.
Firehouse Subs grand opening
Over 750 tickets were served on grand opening day, described as a record for any international Firehouse Subs store.
Two additional South East Queensland sites are in final lease negotiations, with the company targeting 4 stores by December 2026 and 15 by December 2027. RFG has committed to investing US$4m per year across the next two financial years, with scope to exit after year 3. Firehouse Subs is excluded from Underlying Revenue and EBITDA during its initial rollout phase, as RFG holds the exclusive licence to grow the brand in Australia.
Balance sheet and cash: refinance secures the runway
The presentation covered a stabilised financial position underpinned by a February 2026 refinancing.
- A new $41.2m debt facility with major shareholder WH Soul Pattinson was refinanced in February 2026, on a 19-month term extended to 31 August 2027, including a further $7.5m drawdown
- The Group remained in compliance with all covenants, with Net Debt at 26 June of $26.8m
- Cash at end of period was $24.2m, including $14.4m of unrestricted cash (versus $13.9m PCP)
- 2H26 operating cash flow was up 284% on 1H26 and 11% on the PCP
- FY26 full-year Operating Cash Flow was $9.3m, down from $18.4m and weighted to first-half headwinds
The refinanced facility replaced the Group’s existing senior debt arrangement, extending the funding runway to support strategic execution.
The debt refinancing with WHSP in February 2026 removed a material near-term capital risk, with the 19-month facility extension providing the runway for management to execute on its cost-out and brand recovery priorities without the distraction of imminent refinancing pressure.
FY27 outlook: positioned to build on 2H26 momentum
Management outlined an FY27 framework anchored to disclosed guidance and the momentum built during the second half.
- The first 8 weeks of FY27 saw Core Brand Network Sales down -2.6% (reflecting network rationalisation) and SSS down -0.4%, with select brands showing positive momentum
- Cost-out initiatives are targeted to deliver $5–7m in savings in FY27
- Gross margins are expected to benefit from the March 2026 wholesale coffee price rise and improved green bean input costs
- Firehouse Subs is targeting 3 additional stores by December 2026 and 15 by December 2027
- The Türkiye Hub, operational from February 2026, processed $1.6m in orders (68% via road freight), while the International network grew by 8 outlets in 2H26
The picture management presented was one of a transformation delivered, momentum building through the second half, and funding secured to execute against FY27 priorities.
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