Core Viewpoint - Oppenheimer analyst Brian Bittner maintains an Outperform rating on Restaurant Brands International Inc (QSR) with a price target of $77.00, anticipating EBIT growth for 2025 to exceed 8% [1] Financial Projections - The analyst projects 2025E same-store sales (SSS) growth of +2.5%, slightly below the company's target of 3%+ [2] - QSR is expected to experience +1.8% growth in the first quarter of FY25, followed by an average of +2.8% for the subsequent quarters [3] - Adjusted EPS for 2025E is projected at $3.61, down from $3.64, while EBITDA is adjusted to $2.96 billion from $2.99 billion [5] Unit Growth and Segment Performance - QSR anticipates a unit growth of +3.6% for 2025E, slightly higher than the +3.4% growth in 2024 [4] - The fourth-quarter report indicated improving trends, with same-store sales exceeding expectations across most segments, except for TH, which was only 20 basis points below expectations [6] International Performance and Challenges - International performance showed a notable increase of 190 basis points, with management confident in achieving long-term AOI growth of over 8% in 2025 despite challenges from foreign exchange and BK China [7] - Limited commentary on BK US trends for the first quarter raises concerns due to increased competitive pressures [7]

Core Insights - Restaurant Brands International, Inc. (QSR) reported strong fourth-quarter 2024 results, with earnings and revenues exceeding expectations and showing year-over-year growth [1][2]. Financial Performance - Adjusted earnings per share (EPS) for Q4 were 81 cents, surpassing the Zacks Consensus Estimate of 79 cents, reflecting an 11% year-over-year increase [2]. - Quarterly net revenues reached $2.29 billion, beating the consensus mark by 0.1%, and increased by 26.2% year over year [2]. - Adjusted operating income rose 13.5% year over year to $578 million, exceeding projections [11]. - Adjusted EBITDA was $688 million, up 14.1% from $603 million in the prior-year quarter, also surpassing estimates [12]. Segment Performance - Tim Hortons (TH) reported revenues of $1.03 billion, up 0.8% year over year, with system-wide sales rising 3.2% [5]. - Burger King (BK) generated revenues of $374 million, an 8.7% increase from the previous year, driven by acquisitions and higher advertising revenues [6]. - Popeyes Louisiana Kitchen (PLK) saw revenues of $201 million, up 10.6% year over year, although comparable sales fell by 0.2% [7]. - Firehouse Subs (FHS) reported revenues of $58 million, a 14.2% increase, with net restaurant growth of 6.3% [8]. - International segment revenues were $237 million, up 5.8% year over year, supported by higher royalties from franchisees [9]. - Restaurant Holdings (RH) segment revenues totaled $445 million [10]. Cash and Capital - As of December 31, 2024, cash and cash equivalents stood at $1.33 billion, up from $1.14 billion a year earlier [13]. - Long-term debt increased to $13.5 billion from $12.9 billion as of December 31, 2023 [13]. - Net cash provided by operating activities for the year was $1.5 billion, compared to $1.32 billion in the previous year [14]. 2024 Highlights - Total revenues for 2024 were $8.4 billion, up from $7 billion in 2023 [16]. - Adjusted EBITDA for 2024 was $2.8 billion, compared to $2.6 billion in 2023 [16]. - Adjusted diluted EPS for 2024 was $3.34, an increase from $3.24 in the previous year [16]. 2025 Guidance - The company anticipates adjusted net interest expense to be between $500 million and $520 million, with segment G&A (excluding RH) expected to be in the range of $650 million to $670 million [17]. - Capital expenditures, including tenant inducements and incentives, are projected to be between $400 million and $450 million [17]. Long-Term Guidance (2024-2028) - QSR expects more than 3% growth in comparable sales and at least 5% net restaurant growth from 2024 to 2028 [18]. - System-wide sales growth is projected to exceed 8%, with adjusted operating income expected to grow at a rate equal to or greater than system-wide sales growth [18].

Core Insights - Restaurant Brands International (RBI) reported a 2.5% increase in comparable sales, indicating a positive trend despite a challenging consumer environment [1] - CEO Josh Kobza highlighted that RBI's performance outpaced its quick-service restaurant (QSR) peers, although there were some challenges such as moderated pricing and marketing softness [2] - The company experienced a net restaurant growth of 3.4%, affected by geopolitical issues and a 100 basis point headwind from Burger King China [2] Company Initiatives - RBI is focusing on remodeling its Burger King locations and those acquired from Carrols Restaurant Group, which was purchased for $1 billion in 2024 [3] - The remodeling efforts include implementing cloud-based point-of-sale systems and various back-of-house technologies at all U.S. Popeyes locations by the end of next year [3][4] - These upgrades aim to enhance team member experience, reduce wait times, and improve order accuracy while maintaining food quality [4] Industry Context - The earnings report from RBI followed McDonald's fourth-quarter earnings, which showed a 0.4% increase in global comparable sales, but a 1.4% decline in U.S. comparable sales due to an E. coli outbreak [4] - McDonald's is addressing its challenges through innovations like the nationwide launch of its McValue menu [5][6] - The E. coli issue has been localized, primarily affecting the Rocky Mountains, and McDonald's is focused on executing strong marketing programs to improve guest counts and comparable sales [6]

Financial Data and Key Metrics Changes - In 2024, the company achieved a 2.3% growth in comparable sales, a 3.4% increase in net restaurants, and a 5.4% rise in system-wide sales [8] - Organic adjusted operating income grew by 9%, while adjusted EPS increased to $3.34 from $3.24, representing a 4.4% organic growth [63][64] - The full-year gross profit margin was 19.5%, slightly above the guidance of around 19% [62] Business Line Data and Key Metrics Changes - Tim Hortons surpassed $1 billion in adjusted operating income for the first time, with comparable sales growth of 4.3% in 2024 [17][18] - Popeyes U.S. saw a 4.2% increase in system-wide sales, while Burger King U.S. grew comparable sales by 1% [43][33] - Firehouse Subs experienced a decline in full-year comparable sales by about 1%, but saw a sequential improvement in Q4 [50] Market Data and Key Metrics Changes - International comparable sales grew by 3.3%, with significant growth in markets like Australia, Spain, and the U.K. [26] - The company closed the year with over 15,600 restaurants and over $18 billion in system-wide sales, with 60% driven by the top 10 markets [25] Company Strategy and Development Direction - The company aims for long-term growth with a target of 3% plus comparable sales, 5% plus net restaurant growth, and 8% plus organic adjusted operating income growth from 2024 to 2028 [55] - Focus on enhancing franchisee profitability through operational improvements and modernizing restaurant images [78] - Continued expansion into new markets, particularly in India and China, is seen as a long-term growth catalyst [30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving 8% plus organic adjusted operating income growth in 2025 despite challenges [77] - The company remains optimistic about resolving issues in Burger King China and expects to update on potential implications soon [67][68] - The focus on quality, service, and convenience is expected to solidify the company's position as a preferred partner for franchisees [12] Other Important Information - The company generated $1.5 billion in free cash flow, allowing for continued investment in key initiatives while returning over $1 billion to shareholders [66] - The average four-wall EBITDA for Tim's Canada exceeded CAD 305,000, while Popeyes U.S. increased to over $255,000 [15] Q&A Session Summary Question: Clarification on 2025 adjusted operating income growth - Management indicated that while same-store sales are a component, they feel confident about achieving 8% plus AOI growth due to planned marketing programs and operational improvements [92][95] Question: Development situation regarding BK China - Management confirmed ongoing discussions about BK China and expects a resolution soon, which will provide clarity on future development [101] Question: Marketing plans for Burger King and Tim's in 2025 - Management highlighted that successful strategies from 2024 will continue, with new innovations and a focus on quality and value [102][107]

Restaurant Brands International Inc QSR shares are trading higher in premarket on Wednesday.The company reported fourth-quarter sales growth of 26.2% year-on-year to $2.296 billion, beating the analyst consensus estimate of $2.274 billion.Consolidated comparable sales increased 2.5%, and net restaurants grew 3.4% versus the prior year. Consolidated system-wide sales increased 5.6%.Comparable sales for Tim Hortons rose 2.2%, Burger King increased 1.1%, and Popeyes Louisiana Kitchen slipped 0.2%. Revenue for ...

Restaurant Brands International posted strong earnings, beating both revenue and earnings-per-share estimates thanks to substantial international growth.Restaurant Brands International (QSR 0.78%), a leading quick-service restaurant company known for brands like Burger King, Tim Hortons, and Popeyes, reported its fourth-quarter 2024 earnings on February 12, 2025. The results beat market expectations, with Adjusted Diluted EPS of $0.81 compared to predictions of $0.784, an 8% year-over-year growth. Total rev ...

Restaurant Brands International (QSR) reported better-than-expected fourth-quarter results Wednesday, sending shares higher in premarket trading. The parent company of Burger King, Tim Hortons, and Popeyes reported adjusted earnings per share (EPS) of $0.81 on revenue of $2.3 billion. Analysts had expected $0.50 and $2.29 billion, respectively, according to estimates compiled by Visible Alpha. The fast-food giant's comparable sales grew 2.5%, better than the 1.59% growth that analysts had expected. Shares ...

Core Insights - Restaurant Brands International reported a same-store sales growth of 2.5%, driven by strong performance from Burger King and Popeyes in the U.S. [1] - The company's fourth-quarter net income was $361 million, or 79 cents per share, a decrease from $726 million, or $1.60 per share, year-over-year [1] - Shares of Restaurant Brands rose over 1% in premarket trading following the earnings report [1] Financial Performance - Excluding corporate restructuring fees and other items, the adjusted earnings per share were 81 cents [2] - Net sales increased by 26% to $2.3 billion [2] - The reported earnings per share of 81 cents adjusted may not meet the expectations of 79 cents as anticipated by LSEG [3] - Revenue of $2.3 billion also exceeded the expected $2.27 billion by LSEG [3]

EXHIBIT 99 Restaurant Brands International Inc. Reports Full Year and Fourth Quarter 2024 Results Global system-wide sales grow 5.6% for the fourth quarter and 5.4% for 2024 Global comparable sales up 2.5% in Q4, led by 4.7% at INTL and 2.5% at TH Canada 2024 Income from Operations grows 17.9% year-over-year and Organic Adjusted Operating Income grew 9% ~$1.0 billion of capital returned to shareholders in 2024 while investing for growth and reaching net leverage target RBI declares target total of $2.48 in ...

Global system-wide sales grow 5.6% for the fourth quarter and 5.4% for 2024Global comparable sales up 2.5% in Q4, led by 4.7% at INTL and 2.5% at TH Canada2024 Income from Operations grows 17.9% year-over-year and Organic Adjusted Operating Income grew 9%~$1.0 billion of capital returned to shareholders in 2024 while investing for growth and reaching net leverage targetRBI declares target total of $2.48 in dividends per common share and partnership exchangeable unit for 2025TORONTO, Feb. 12, 2025 /PRNewswir ...