Core Insights - Happy Belly Food Group Inc. has signed an area development agreement for Saskatchewan, aiming to establish a minimum of 10 new locations for Rosie's Burgers, enhancing its growth trajectory [1][3] - The company now has a total of 551 units under development agreements, indicating a strong path for organic growth [1][5] Expansion Strategy - The recent agreement allows Rosie's Burgers to expand into a territory covering 9 provinces, marking a significant step in the company's national expansion strategy [3][5] - Happy Belly is pursuing a dual-track growth approach, combining corporate store development with an asset-light franchise model, which is expected to drive continued momentum [5][6] Market Opportunity - Saskatchewan is identified as a prime market due to its strong community sense, growing urban centers, and a diversifying economy, making it suitable for fast-casual dining experiences [6] - The province's lower cost of doing business compared to major metropolitan areas is anticipated to improve margins and scalability for Rosie's Burgers [6] Brand Positioning - Rosie's Burgers is positioned to become the leading national smash burger brand in Canada, with 105 locations secured under area development agreements across various provinces [5][6] - The brand focuses on delivering high-quality, locally sourced food options, catering to a youthful, family-oriented demographic [6]

Summary of the Conference Call Company Overview - The conference call features Patrick Doyle, chairman of Restaurant Brands International (RBI), discussing the company's performance and strategies across its brands, including Tim Hortons, Burger King, Popeyes, and Firehouse Subs [1][2]. Key Points and Arguments Business Performance - **Tim Hortons**: Recognized as RBI's largest business, with strong leadership and significant improvements in food quality and service speed. The brand has been performing exceptionally well, with increasing confidence in its future [3][4]. - **International Business**: Outperforming peers, with notable growth expected from Popeyes, which is anticipated to match or exceed Burger King's growth [5]. - **Burger King North America**: Identified as a "fixer upper," with ongoing efforts to improve brand performance through remodels and better franchisee engagement. Recent performance shows relative outperformance in five out of the last six quarters [6][8][11]. - **Popeyes**: The brand is experiencing rapid growth, with EBITDA increasing fourfold since its acquisition in 2018. The focus is on enhancing operational efficiency and service quality [9][80]. Franchisee Profitability - RBI aims to enhance franchisee profitability by setting cash flow targets, with goals of over $300,000 for Tim Hortons, Popeyes, and Burger King. Tim Hortons is already achieving this, while Burger King is progressing towards it [12][14][16]. Consumer Insights - The health of the restaurant industry is closely tied to employment levels. As long as employment remains stable, consumers are willing to spend on dining out. Recent trends show some weakness in Canadian employment, but the U.S. market remains strong [18][19]. Development and Growth Strategy - RBI plans to achieve a net growth of 5% by 2028, with a focus on expanding Tim Hortons and stabilizing Burger King. The company aims for 400 new units in North America and 1,100 internationally, with a significant portion coming from Popeyes [21][30]. - The company is addressing challenges in Burger King China, having taken control to improve operations and find a suitable long-term partner [32][35]. International Expansion - RBI has successfully expanded its international presence, particularly in France, where it has grown to a $2 billion business since opening its first location in 2013. The company emphasizes the importance of strong local partnerships [67][70]. Future Outlook - RBI is focused on improving operational efficiency and achieving consistent growth in operating income, targeting an 8% growth rate. The company believes that achieving this target will enhance market confidence in its performance [86][89]. Additional Important Insights - The sentiment among franchisees has dramatically improved, with many expressing satisfaction with the company's direction and support [47]. - The company acknowledges the competitive landscape, particularly in the chicken segment, and is committed to enhancing service and execution at Popeyes to maintain its competitive edge [80][82]. - RBI is not currently looking to acquire new brands, focusing instead on maximizing the value of its existing portfolio [84]. This summary encapsulates the key discussions and insights from the conference call, highlighting RBI's strategic focus on improving brand performance, franchisee profitability, and international growth while navigating challenges in specific markets.

Core Insights - Happy Belly Food Group Inc. has opened its 23rd Heal Wellness location in Kingston, Ontario, marking significant expansion in the quick serve restaurant sector focused on health-conscious offerings [1][3] - The company has experienced substantial growth, with 56 restaurants now operating across corporate and franchise locations, and plans for further expansion throughout 2025 [3][5] - The new location is strategically positioned near Queen's University, targeting a demographic that prioritizes health and convenience, which is expected to drive foot traffic and sales [6][7] Company Expansion - The opening in Kingston represents the 13th Heal location in Ontario, with additional sites under construction and planned for the future [3] - Happy Belly has secured 130 units under development agreements across Canada, indicating a robust pipeline for continued growth [3][5] - The company aims to maintain momentum through both internal launches and targeted mergers and acquisitions, with 531 retail locations under contract [5] Market Positioning - Heal Wellness focuses on providing quick, fresh wellness foods, catering to a health-conscious consumer base, particularly in university towns like Kingston [6][7] - The company emphasizes the use of high-quality superfood ingredients in its menu, appealing to consumers seeking nutritious meal options [7] - The strategic location of the new restaurant is expected to capitalize on the vibrant community of students and professionals, enhancing brand visibility and customer engagement [6]

Financial Data and Key Metrics Changes - The company is on track to deliver over 8% adjusted operating income growth for the year, which is a fundamental part of its long-term algorithm [15][16] - Franchise profitability for Tim Hortons exceeded $300,000 annually per unit last year, increasing by $25,000 [70] Business Line Data and Key Metrics Changes - The acquisition of Carrols was a significant step for the Burger King brand, aimed at changing the franchise landscape to more local owner-operators [9] - The company has taken over its Burger King business in China, which had been struggling, and is now focused on improving operations and ramping up advertising [10][11] Market Data and Key Metrics Changes - In the U.S., stable employment levels are seen as a positive driver for QSR usage, while Canada has experienced a slight uptick in unemployment, presenting a tougher environment [30][31] - The company sees stabilization in consumer spending in China, with plans to open 300 restaurants there as part of its growth strategy [38][39] Company Strategy and Development Direction - The company aims to build compelling business models for franchise partners globally, focusing on sustainable unit economics [18] - The strategy includes refranchising Carol's restaurants and Burger King China to local operators, simplifying the business model over time [24][25] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about addressing fundamental challenges in the business, including turning around the Burger King brand and improving operations in China [16][17] - The management believes that the investments made will yield high returns and strengthen the business foundation by 2028-2029 [21] Other Important Information - The company has added a new segment called Restaurant Holdings, which includes Carol's, Popeyes China, and Firehouse Brazil, to provide clearer financial disclosure [20] - The company plans to maintain a high level of capital expenditures in 2025 and 2026, with expectations to stabilize around $300 million thereafter [25][27] Q&A Session Summary Question: What has changed in the past year for Restaurant Brands International? - Management highlighted the acquisition of Carrols and taking over Burger King in China as significant changes [9][10] Question: What are the top three takeaways for investors? - The company is on track for 8% adjusted operating income growth, addressing fundamental challenges, and building sustainable business models for franchisees [15][16][18] Question: What is the path to improve ROIC? - The focus is on refranchising Carol's and Burger King China, with a long-term view of simplifying the business model [24][25] Question: How is the macro environment affecting different markets? - The U.S. shows stable employment, while Canada faces challenges; China is stabilizing, and Western Europe has mixed performance [30][31][33] Question: How is Tim Hortons performing in Canada? - Tim Hortons has maintained strong performance due to its value proposition, despite macro challenges [35][36] Question: What is the strategy for Popeyes in China? - The company is optimistic about Popeyes in China, focusing on building a strong local management team and improving operations [41][42] Question: How does the company manage coffee price pressures? - The company hedges coffee prices by buying forward, which helps mitigate volatility, and coffee costs represent a small portion of COGS [70][71][72] Question: What is the outlook for Tim Hortons' same-store sales growth? - Management expects continued outperformance beyond the long-term algorithm of 2% due to consistent improvements in product quality and service [76][80]

Core Viewpoint - Happy Belly Food Group Inc. has signed its second franchise agreement in Atlantic Canada, specifically in Halifax, Nova Scotia, marking a significant step in its national expansion strategy [1][6]. Company Expansion - The new franchise agreement in Halifax is Heal Wellness's 52nd franchise agreement and represents the fifth operating province for the brand and the sixth province overall for Happy Belly [1]. - The company is currently developing multiple units in Alberta, British Columbia, and Ontario, with a total of 130 units secured under development agreements [3][4]. - The area developer, David Wilson, has been instrumental in the early stages of the Atlantic Canada expansion, leveraging local connections to yield results [3]. Growth Strategy - Happy Belly's disciplined approach to both organic and inorganic growth has been a driving force behind its success, focusing on delivering quality products, collaborating with great people, and establishing sustainable processes [4]. - The company is actively sourcing real estate in Atlantic Canada for new franchisees, with Blueberry Commercial Real Estate leading the location search [3][4]. Product Offering - Heal Wellness specializes in fresh smoothie bowls, acai bowls, and smoothies, catering to a busy and active lifestyle with a focus on superfood ingredients [7][8].

Core Insights - Happy Belly Food Group Inc. has signed its first franchise agreement in Atlantic Canada for the province of Prince Edward Island, marking Heal Wellness's 51st franchise agreement and the fourth operating province for the brand [1][3] - The company aims to accelerate growth through both organic initiatives and strategic acquisitions, with a focus on expanding its franchise agreements and securing premium real estate across Canada [5] Company Overview - Happy Belly Food Group Inc. is a leader in acquiring and scaling emerging food brands across Canada, currently operating under the Heal Wellness brand, which specializes in fresh smoothie bowls, acai bowls, and smoothies [1][9] - The company has a total of 531 contractually committed retail franchise locations across its emerging brands, which are either in development, under construction, or already operating [5] Strategic Goals - The signing of the franchise agreement is part of a broader national expansion strategy, with expectations to announce additional projects throughout 2025 as the company continues to secure new franchise agreements [3][5] - The company emphasizes its mission to become a predictable and disciplined growth company, focusing on selecting the right franchise partners and optimal real estate to achieve development goals [5]

Company Overview - Restaurant Brands International Inc. (RBI) is one of the largest quick service restaurant companies globally, with nearly $45 billion in annual system-wide sales and over 32,000 restaurants across more than 120 countries and territories [3]. - RBI owns four prominent quick service restaurant brands: TIM HORTONS®, BURGER KING®, POPEYES®, and FIREHOUSE SUBS® [3]. - The company operates under the "Restaurant Brands for Good" framework, focusing on improving sustainable outcomes related to food, the planet, and communities [3]. Leadership Engagement - Josh Kobza, CEO, and Sami Siddiqui, CFO, will participate in a fireside chat at the Bernstein 41st Annual Strategic Decisions Conference on May 29, 2025, at 8:00 am Eastern Time [1]. - A live audio webcast of the event will be available on the company's investor relations website and accessible for 30 days post-event [2]. Corporate Structure - RBI's principal executive offices are located in Miami, Florida, with brand headquarters in their original markets: Canada for Tim Hortons and the U.S. for Burger King, Popeyes, and Firehouse Subs [4].

Core Insights - Happy Belly Food Group Inc. has opened its 22nd Heal Wellness location at the University of Calgary's University District, marking a significant milestone in its expansion strategy [1][2] - The company aims to accelerate growth through both organic initiatives and strategic acquisitions, with a focus on expanding its franchise network across Canada [5][6] Expansion Strategy - The new Heal Wellness location is the 7th in Alberta and the 10th in Western Canada, contributing to a total of 54 restaurants in the company's network [2] - Happy Belly has 531 contractually committed retail franchise locations across its emerging brands, indicating a robust pipeline for future growth [5] Market Positioning - The University District, with over 38,000 students, presents a significant opportunity for Heal Wellness to capture a large customer base focused on healthy eating [6][7] - The community's design promotes healthy lifestyles, which aligns with Heal's mission to provide quick, fresh wellness foods [7][8] Product Offering - Heal Wellness specializes in smoothie bowls, acai bowls, and smoothies, emphasizing the use of superfood ingredients to support an active lifestyle [8]

Core Insights - Burger King is launching a new menu inspired by the "How to Train Your Dragon" live-action remake as part of its strategy to attract families and boost U.S. sales [2][3][10] - The fast-food chain has been in a turnaround phase for over 2.5 years, investing hundreds of millions to renovate restaurants and improve operations [3][11] - The company aims to leverage family-oriented marketing to enhance customer retention and attract a broader demographic, including millennials and Generation Alpha [4][10] Menu Innovations - New menu items include the Dragon Flame-Grilled Whopper, Fiery Dragon Mozzarella Fries, Soaring Strawberry Lemonade, and the Viking's Chocolate Sundae [1][5] - The Dragon Flame-Grilled Whopper features a red and orange marbled bun, while the fries are made with Calabrian chili pepper breading [5][9] - Previous successful collaborations with movie franchises have led to increased sales, with the Spider-Verse and Addams Family promotions being notable examples [8][10][13] Marketing Strategy - The family-first marketing strategy is expected to enhance customer engagement and sales, particularly as families tend to have higher average checks [4][10] - Burger King plans to change its advertising approach to better promote its movie tie-ins, moving beyond mere association to active promotion [13][14] - The promotion is set to run through early July, with contingency plans in place to monitor stock levels of the new menu items [15] Competitive Landscape - Burger King's U.S. same-store sales recently declined by 1.1%, reflecting broader industry challenges, but the company remains optimistic about its competitive positioning against McDonald's and Wendy's [11][12] - The company believes that its innovative strategies are being observed and potentially emulated by competitors, reinforcing its commitment to its current course [12]

Core Viewpoint - Happy Belly Food Group Inc. is expanding its Heal Wellness brand with the opening of its 21st location in Grand Bend, Ontario, marking significant growth in its restaurant network [1][3]. Expansion and Growth - The new Heal Wellness location is the 12th in Ontario and part of a broader strategy that has seen Happy Belly reach a total of 54 restaurants in its franchised and corporate network [3][4]. - The company is experiencing rapid growth, with a first-mover advantage in the wellness food sector, and has 130 total units under contractual commitment, indicating strong franchise interest [4][5]. - Happy Belly is focused on accelerating growth through both organic initiatives and strategic acquisitions, with 531 contractually committed retail franchise locations across its brands [5]. Market Positioning - Grand Bend is identified as an ideal location for Heal due to its vibrant beachside community and summer tourism, which attracts health-conscious visitors seeking nutritious dining options [6]. - The limited competition for clean-eating offerings in the area positions Heal to quickly become a local favorite, leveraging the town's active lifestyle culture and strong foot traffic [6]. Product Offering - Heal Wellness specializes in quick, fresh wellness foods, including a diverse range of smoothie bowls and smoothies made with high-quality superfood ingredients [7].