Company Overview - Restaurant Brands International Inc. (RBI) is one of the largest quick service restaurant companies globally, with over $40 billion in annual system-wide sales and more than 30,000 restaurants across over 120 countries and territories [3]. Upcoming Financial Results - RBI will release its third quarter 2024 financial results on November 5, 2024, with an investor conference call scheduled for 8:45 a.m. Eastern Time on the same day [1]. Investor Access - The earnings call will be available via webcast on the company's investor relations website, and a replay will be accessible for 30 days post-release. Dial-in numbers for the conference call include 1 (833)-470-1428 for U.S. callers, 1 (833)-950-0062 for Canadian callers, and 1 (929)-526-1599 for international callers, with an access code of 309027 [2]. Brand Portfolio - RBI owns four prominent quick service restaurant brands: Tim Hortons®, Burger King®, Popeyes®, and Firehouse Subs®, which have been serving their respective markets for decades [3]. Sustainability Initiatives - Through its "Restaurant Brands for Good" framework, RBI is focused on improving sustainable outcomes related to food, the planet, and communities [3].

Restaurant Brands NYSE: QSR owns massive fast-food chains like Burger King, Popeyes, and Tim Hortons. The company has received approval for its share buyback program, under which it will be able to repurchase up to 10% or $500 million worth of its outstanding shares over the next year. Let's explore what this announcement really means and compare the company to the competition on key metrics. Get QSR alerts: Repurchases: Better to Have and Not Need Than the Other Way Around Restaurant Brands International T ...

Core Insights - Happy Belly Food Group Inc. has signed a franchise agreement for its Heal Wellness brand in Niagara Falls, Ontario, expanding its presence in the quick serve restaurant sector focused on healthy food options [1][2]. Company Growth - Heal Wellness has grown from two locations at the time of acquisition to eleven operating locations across three provinces, with a total of 44 franchise agreements signed [2]. - The company has a development pipeline with contractual commitments for 376 units across all seven restaurant brands, including 100 units specifically for Heal [3]. Market Potential - Niagara Falls is identified as a promising market due to its tourism, active lifestyle, and high-traffic retail environment, which aligns with the demand for nutritious food options [3]. - The region attracts tens of thousands of tourists and has numerous parks and recreational facilities, enhancing the potential customer base for Heal Wellness [3]. Expansion Strategy - Happy Belly anticipates multiple store openings across its brands throughout 2024-2025, driven by ongoing franchise agreements and securing prime real estate locations [4]. - The rapid expansion of Heal Wellness is seen as a testament to the company's effective execution of its asset-light franchising model, with plans to accelerate corporate store development as free cash flow increases [4]. Product Offering - Heal Wellness focuses on providing quick, fresh wellness foods, including a diverse range of smoothie bowls and smoothies made with superfood ingredients [5]. Company Overview - Happy Belly Food Group Inc. is recognized as a leading consolidator of emerging food brands, emphasizing its growth and expansion in the food service industry [6].

TORONTO, Sept. 3, 2024 /PRNewswire/ - Restaurant Brands International Inc. ("RBI") (TSX: QSR) (NYSE: QSR) (TSX: QSP), 1011778 B.C. Unlimited Liability Company (the "Issuer") and New Red Finance, Inc. (the "Co-Issuer" and, together with the Issuer, the "Issuers") announced today that the Issuers have priced an offering of $500 million in aggregate principal amount of 5.625% First Lien Senior Secured Notes due 2029 (the "Notes"). The closing of the offering of the Notes is expected to occur on or about Septem ...

Core Insights - Happy Belly Food Group Inc. has opened its 11th Heal Wellness location in Toronto, marking significant growth in its portfolio of emerging food brands in 2024 [1] - The company has a commitment for 376 retail units across Canada and the US, with a strong pipeline of franchisee applications [1][2] - The new location is expected to enhance Heal's customer base in a densely populated area, aligning with the brand's target demographics [1] Group 1: Company Expansion - The opening of the Heal Wellness location is part of a broader strategy, with seven restaurant openings in the Happy Belly portfolio this year and more planned [1] - The company is actively sourcing real estate and reviewing franchisee applications to support its asset-light franchising model [2] - Five brands within the Happy Belly portfolio currently have store locations under construction, indicating ongoing expansion efforts [1] Group 2: Brand and Product Offering - Heal Wellness focuses on providing quick, fresh wellness foods, including a diverse range of smoothie bowls and smoothies made with superfood ingredients [3] - The brand emphasizes the use of real fruit and superfoods like acai, pitaya, and chia seeds in its menu offerings [3] Group 3: Market Opportunity - Toronto's growing population and active lifestyle culture create a strong demand for nutritious food options, presenting substantial opportunities for the Heal brand [1] - The company anticipates that the new location will leverage in-store and delivery services to capture market share in the area [1]

Core Points - Restaurant Brands International Inc. (RBI) announced the exchange of 6,528,013 Class B exchangeable limited partnership units for an equal number of common shares [1] - The Selling Shareholder, an affiliate of 3G Capital, has initiated a public offering of up to 6,528,013 common shares [3] - RBI will not sell any common shares in the offering and will not receive any proceeds from the sale [4] Company Overview - RBI is one of the largest quick service restaurant companies globally, with over $40 billion in annual system-wide sales and more than 30,000 restaurants across over 120 countries [7] - The company owns four major quick service restaurant brands: TIM HORTONS®, BURGER KING®, POPEYES®, and FIREHOUSE SUBS® [7] - RBI is committed to improving sustainable outcomes related to food, the planet, and communities through its Restaurant Brands for Good framework [7]

Core Viewpoint - Restaurant Brands International, Inc. (RBI) reported strong second-quarter 2024 results, with both earnings and revenues exceeding expectations and showing year-over-year growth [1][3][4]. Earnings & Revenue Discussion - Adjusted earnings per share (EPS) reached 86 cents, surpassing the Zacks Consensus Estimate and the previous year's figure of 85 cents by 1.2%, with organic growth of 3.1% year over year [3]. - Quarterly net revenues totaled $2.08 billion, exceeding the consensus mark of $2.05 billion by 1.7% and increasing 17.2% year over year, driven by strong sales growth across various segments [4]. - Consolidated comparable sales increased by 1.9%, and net restaurants grew by 4% year over year, with global system-wide sales rising by 5% year over year [5]. Segmental Revenues - The company operates through five segments: Tim Hortons (TH), Burger King (BK), Popeyes Louisiana Kitchen (PLK), Firehouse Subs (FHS), and International (INTL) [6]. - TH reported revenues of $1.03 billion, up 2.2% year over year, with system-wide sales growth of 5.4% [6]. - BK's revenues were $364 million, an increase of 11.5% year over year, while system-wide sales fell by 0.7% [7]. - PLK generated revenues of $194 million, up 12.2% year over year, with system-wide sales growth of 4.6% [8]. - FHS revenues totaled $53 million, up 10.3% year over year, with system-wide sales growth of 3.3% [9]. - INTL segment revenues reached $232 million, up 6.1% year over year, with system-wide sales growth of 9.2% [10]. Operating Performance - Adjusted operating income rose by 9.5% year over year to $632 million, while adjusted EBITDA increased by 8.4% to $721 million [10]. Cash and Capital - As of the end of the second quarter, the company had cash and cash equivalents of $942 million, down from $1.14 billion at the end of 2023, with long-term debt increasing to $13.1 billion [11]. - Net cash provided by operating activities was $482 million in the first half of 2024, compared to $487 million in the same period last year [12]. Dividend Announcement - The board of directors announced a dividend payout of 58 cents per common share, payable on October 4, 2024, to shareholders of record as of September 20 [13]. 2024 Guidance Updated - RBI expects adjusted net interest expense to be between $565 million and $575 million, and segment G&A (excluding RH) to be in the range of $640 million to $660 million [14]. - Capital expenditures are projected to be approximately $300 million [15]. Long-Term Guidance (2024-2028) - The company anticipates more than 3% growth in comparable sales and at least 5% net restaurant growth from 2024 to 2028, with system-wide sales growth exceeding 8% [16].

Financial Data and Key Metrics - Global comparable sales grew by 1.9%, with net restaurant growth of 4%, leading to system-wide sales growth of 5% and organic adjusted operating income growth of 9.3% [6] - Adjusted EPS was $0.86 for the quarter, representing a 3.1% organic increase year-over-year, excluding FX headwinds and benefits from Restaurant Holdings [33] - Free cash flow generated during the quarter was over $290 million, with $261 million returned to shareholders through dividends [36] Business Line Performance - **Tim Hortons**: Delivered 43% of adjusted operating income, with comparable sales in Canada increasing by 4.9%, driven by strong traffic and check growth [13] - **Burger King US**: Comparable sales were relatively flat, with a 0.8% decline in system-wide sales, but outperformed the broader QSR industry [20] - **Popeyes US**: Grew net restaurants by 3.8% and comparable sales by 0.6%, resulting in system-wide sales growth of 4% [23] - **Firehouse Subs**: Saw relatively flat comparable sales but increased system-wide sales by 3.3%, with over 40% of sales coming through digital channels [27] Market Performance - **International Markets**: Comparable sales grew by 2.6%, with net restaurant growth of 8.2% and system-wide sales growth of 9.2% [17] - **China**: The company acquired Popeyes China and made a co-investment in Tim Hortons China, aiming to grow the business before finding a new partner [10] - **France**: Burger King outperformed the industry, with over 530 locations and $2 billion in annual system-wide sales [17] Strategic Direction and Industry Competition - The company closed the acquisition of Carrols Restaurant Group, planning to remodel 600 Carrols restaurants through 2028 and refranchise the majority of the portfolio [9] - Popeyes is expanding internationally, with significant growth in markets like Spain, the UK, India, and France, and recently entered New Zealand and Costa Rica [18][19] - Burger King US is focusing on value propositions, menu innovation, and operational improvements, with plans to modernize 85-90% of its system by 2028 [22] Management Commentary on Operating Environment and Future Outlook - The company expects system-wide sales growth to be lighter in 2024 compared to the long-term growth algorithm, but remains confident in delivering 8%+ organic adjusted operating income growth [11][38] - Management highlighted the importance of franchisee alignment and cost discipline in navigating the current consumer environment [5][42] - The company is focused on improving operations, digital capabilities, and convenience across all brands to drive long-term growth [44] Other Important Information - The company introduced a new reportable segment, Restaurant Holdings, which includes results from the Carrols acquisition and Popeyes China operations [4] - Tim Hortons Canada achieved a 10% threshold in PM food market share, driven by menu innovation like flatbread pizzas and cold beverages [14][16] - Burger King US is on track to complete nearly 400 remodels in 2024, with remodels driving mid-teens uplift in sales [22] Q&A Session Summary Question: Impact of Restaurant Holdings on operating profit growth [46] - The 8%+ organic adjusted operating income growth guidance excludes Restaurant Holdings, focusing on pre-Carrols transaction results [47] Question: Unit growth expectations for 2024 and beyond [46] - The company expects 4% unit growth in 2024, with plans to accelerate growth in 2025 through improvements in Burger King US, Firehouse, and international markets [48][49] Question: Same-store sales outlook for the second half of 2024 [52] - The company expects second-half comps to be consistent with Q2, around 2%, with stable performance across brands and regions [53] Question: G&A and cost containment in 2024 [58] - G&A reductions are driven by personnel changes, lower incentive-based compensation, and cost discipline measures, with two-thirds of the reductions representing a new baseline [59][61] Question: Burger King US reimage program progress [69] - The company is on track to complete 400 remodels in 2024, with mid-teens sales uplift from reimaged stores, and is transitioning to the new Sizzle image [70][71] Question: Value strategy at Burger King US [76] - Burger King US is maintaining its value offerings, including the $5 Your Way Meal, which is profitable for franchisees and resonates with lower- and middle-income consumers [77][79] Question: Franchisee profitability and cost trends [95] - Burger King US franchisee profitability is stable to improving, with low single-digit commodity and labor inflation expected in the second half of 2024 [96][97] Question: Tim Hortons Canada performance and value positioning [99] - Tim Hortons Canada continues to outperform the industry, with strong value offerings and relentless operational improvements driving growth [100][101] Question: Value messaging in international markets [102] - The company emphasizes great value propositions in international markets, tailoring offerings to local preferences while aligning with core brand strategies [103]

Key Takeaways Burger King and Popeyes parent Restaurant Brands International reported second-quarter earnings that topped analysts' expectations. The earnings beat came despite a revenue miss, with comparable sales growth slowing from a year ago. CEO Josh Kobza said the company faced "short-term consumer pressures" like much of the industry. Burger King and Popeyes parent Restaurant Brands International (QSR) posted second-quarter earnings that topped analysts' expectations, despite slowing comparable sales ...

Core Insights - Restaurant Brands (QSR) reported quarterly earnings of $0.86 per share, exceeding the Zacks Consensus Estimate of $0.85 per share, and showing an increase from $0.85 per share a year ago [1] - The company achieved revenues of $2.08 billion for the quarter ended June 2024, surpassing the Zacks Consensus Estimate by 1.70% and up from $1.78 billion year-over-year [3] Earnings Performance - The earnings surprise for the recent quarter was 1.18%, following a previous quarter where the company also exceeded expectations with a surprise of 1.39% [2] - Over the last four quarters, Restaurant Brands has consistently surpassed consensus EPS estimates [2] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.93 on revenues of $2.25 billion, and for the current fiscal year, it is $3.36 on revenues of $8.25 billion [8] - The estimate revisions trend for Restaurant Brands is mixed, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market [7] Industry Context - The Retail - Restaurants industry, to which Restaurant Brands belongs, is currently ranked in the bottom 30% of over 250 Zacks industries, which may impact stock performance [9] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, suggesting that investors should monitor these revisions closely [6]