Company Overview - Restaurant Brands International is a multinational quick service portfolio that includes four well-known brands: Tim Hortons, Burger King, Popeyes, and Firehouse Subs [2] Growth Strategy - The company's long-term growth algorithm targets annual system sales growth of over 8%, supported by approximately 3% comparable sales growth and around 5% net unit growth over time [2] - A recent joint venture partnership with CPE, a new Burger King master franchisee in China, is expected to enhance net unit growth [2]

Financial Data and Key Metrics Changes - The company aims for an annual system sales growth of 8%+, supported by approximately 3% comparable sales growth and around 5% net unit growth over time [2] - The international business has shown strong performance, with 18 consecutive quarters of positive same-store sales [16][44] Business Line Data and Key Metrics Changes - Tim Hortons in Canada has been performing exceptionally well, being the number one brand in value for money and convenience, with about 4,000 restaurants [39] - Burger King in the U.S. has maintained consistent promotions like the $5 Duos and $7 Trios, contributing to its performance despite a challenging environment [12][30] Market Data and Key Metrics Changes - The Canadian consumer environment has been stable, with some improvement in consumer confidence and a slight decrease in unemployment [6] - The U.S. lower-income consumer segment has been softer, while middle and upper tiers have shown more strength [7][8] Company Strategy and Development Direction - The company is focused on simplifying its business model, aiming to be predominantly asset-light and franchised, with significant steps taken in refranchising and partnerships [25][26] - The partnership with CPE in China is seen as a strategic move to enhance growth and operational efficiency in that market [50][53] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the competitive pressure from food at home versus food away from home, emphasizing the importance of value for money [10][11] - The company is optimistic about returning to modestly positive unit growth in 2026, with a focus on untapped potential in various international markets [67] Other Important Information - An Investor Day is scheduled for February 26, 2024, to provide further insights into the company's strategy and performance [14] - The company has seen significant growth in its international markets, particularly in France, Germany, and Australia, with ongoing expansion in India and China [44][46][48] Q&A Session Summary Question: How do you describe the health of the consumer across different groups? - Management noted a mixed environment, with lower-income consumers being softer while middle and upper tiers remain strong [6][7] Question: What is the company's strategy regarding pricing in the current environment? - The company has been prudent about pricing, focusing on value for money across its brands [11][12] Question: What are the key drivers of success for the company in the current environment? - Key drivers include value for money positioning, innovation in product offerings, and operational improvements [29][30] Question: What are the expectations for unit growth in the coming years? - The company expects to return to 5% unit growth by 2028, with modestly positive growth anticipated in 2026 [57][66]

Financial Data and Key Metrics Changes - The company aims for annual system sales growth of over 8%, supported by approximately 3% same-store sales growth and around 5% net unit growth over time [2] - The Canadian business has shown strong performance despite a softer consumer environment, with recent improvements in consumer confidence and a slight decrease in unemployment [6][7] - The U.S. consumer segment, which constitutes about 30% of the business, has seen consistent dynamics, with lower-income consumers being softer while middle and upper tiers remain stable [8][9] Business Line Data and Key Metrics Changes - Tim Hortons in Canada is positioned as the number one brand in value for money, with a strong focus on everyday value rather than heavy discounting [29] - Burger King U.S. has maintained consistent promotions like $5 Duos and $7 Trios, focusing on the Whopper and family activations to drive traffic [12][32] - Firehouse Subs has achieved significant growth, opening 100 net new units in the last four quarters, marking a 3-4x increase in growth pace since acquisition [67] Market Data and Key Metrics Changes - The international business accounts for about 30% of operating income, with 18 consecutive quarters of positive same-store sales [44] - France is the largest international market, with several billion-dollar revenue businesses in countries like Germany, Australia, and Spain [45] - The company is expanding Popeyes into new markets, achieving strong results in places like the U.K. and China [46] Company Strategy and Development Direction - The company is focused on simplifying its business model, aiming to become predominantly asset-light and franchised, with significant refranchising efforts planned for 2026 [25][26] - The partnership with CPE in China is seen as a strategic move to enhance operations and growth potential, with a $350 million capital injection planned [50][53] - The company is optimistic about unit growth, targeting a return to 5% net unit growth by 2028, with a focus on markets like China and India [57][66] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the challenges posed by the current consumer environment but remains confident in the company's value positioning and operational improvements [11][29] - The company is monitoring the potential impact of GLP-1 medications on consumer behavior, particularly in the U.S. market [21][22] - The focus for 2026 will be on executing the existing plan and continuing to simplify operations while driving growth in both domestic and international markets [24][66] Other Important Information - An Investor Day is scheduled for February 26, where management will address investor questions and provide further insights into the business [14] - The company has maintained a strong franchisee base in Canada, which is crucial for operational success and community engagement [39][40] Q&A Session Summary Question: How does the company view the health of the consumer across different groups? - Management noted a mixed environment, with lower-income consumers being softer while middle and upper tiers remain stable [6][8] Question: What is the company's strategy regarding pricing in the current environment? - The company emphasizes prudent pricing strategies across its brands, focusing on value for money to attract consumers [11][12] Question: What are the key drivers of success for the company's brands in a challenging environment? - Key drivers include value positioning, innovation in product offerings, and operational improvements [29][30] Question: How does the company view its international business? - Management highlighted the importance of international markets, noting consistent performance and significant growth potential [15][44] Question: What are the expectations for unit growth moving forward? - The company aims for modestly positive net unit growth in 2026, with a long-term target of 5% by 2028 [57][66]

Financial Data and Key Metrics Changes - The company aims for annual system sales growth of over 8%, supported by approximately 3% same-store sales growth and around 5% net unit growth over time [2] - The Canadian business has shown strong performance, with 18 consecutive quarters of positive same-store sales [16][41] - The U.S. consumer environment has been mixed, with lower-income consumers showing softness, while middle and upper tiers have remained stable [7] Business Line Data and Key Metrics Changes - Tim Hortons in Canada is positioned as the number one brand in value for money, with a focus on everyday value rather than heavy discounting [28] - Burger King U.S. has maintained consistent promotions like $5 Duos and $7 Trios, focusing on value and family-oriented marketing [11][30] - Popeyes has expanded significantly, with successful launches in markets like China and the U.K., achieving strong unit economics [43] Market Data and Key Metrics Changes - The international business accounts for about 30% of operating income, with significant growth in markets like France, Germany, and Australia [41] - The company has seen positive same-store sales across its international business for 18 consecutive quarters, indicating strong performance [41] - Emerging markets like India and China are viewed as having substantial growth potential, with ongoing expansion plans [45] Company Strategy and Development Direction - The company is focused on simplifying its business model, aiming for a predominantly asset-light and franchised structure [24][25] - The partnership with CPE in China is expected to enhance growth, with a significant capital injection of $350 million to support expansion [50] - The company plans to continue refranchising restaurants, with expectations to refranchise 50-100 restaurants in 2025 and increase that number in 2026 [25] Management's Comments on Operating Environment and Future Outlook - Management acknowledges a mixed consumer environment but remains optimistic about the company's ability to navigate challenges through value positioning and operational improvements [10][28] - The company expects modestly positive net restaurant growth in China in 2026, following a year of store base cleanup [60] - There is confidence in achieving long-term unit growth targets of 5% by 2028, driven by strong performance in international markets and ongoing operational improvements [62] Other Important Information - An Investor Day is scheduled for February 26, 2026, to provide further insights into the company's strategy and performance [13] - The company emphasizes the importance of its non-U.S. businesses, which contribute significantly to overall operating income [14] Q&A Session Summary Question: How does the company view the health of the consumer across different groups? - The company notes a mixed environment, with lower-income consumers being softer, while middle and upper tiers remain stable [7] Question: What is the company's strategy to compete with food at home? - The company focuses on providing value for money and has been prudent with pricing across its brands [10][11] Question: What are the key drivers of success in the current environment? - Key drivers include value positioning, innovation in product offerings, and operational improvements [28][30] Question: What are the expectations for unit growth in the coming years? - The company expects to achieve modestly positive unit growth in 2026, with a long-term target of 5% by 2028 [62]

Core Insights - The quick-service chicken category has expanded its share of total food spending across income groups, prompting legacy burger chains to enhance their chicken offerings [1] - Burger King is focusing on its burger offerings, particularly through the "Whopper by You" platform, which allows customers to suggest new burger ideas [2] - The "Whopper by You" initiative has successfully engaged customers and broadened the chain's appeal to women and Gen Z [3] Company Strategy - Burger King aims to lead with its burgers, capitalizing on the current trend of competitors focusing on chicken, creating a unique opportunity for the brand [4] - The company plans to innovate not only with the Whopper but also with its Double Cheeseburger, emphasizing its strength in the burger category [5] - While Burger King acknowledges future chicken opportunities, the primary focus will remain on enhancing its core burger offerings [5][6]

Upgrades - Baird upgraded Albemarle (ALB) to Neutral from Underperform with a price target of $113, up from $81, due to optimism regarding lithium end-market demand tied to energy storage [2] - Morgan Stanley upgraded DexCom (DXCM) to Overweight from Equal Weight with a price target of $75, up from $63, citing signs of recovery from operational challenges while valuation remains at trough levels [2] - Argus upgraded Restaurant Brands (QSR) to Buy from Hold with an $85 price target, expecting strong brands to lead to higher domestic comparable sales and international unit expansion [3] - Truist upgraded Six Flags (FUN) to Buy from Hold with a price target of $23, down from $27, noting the new CEO's promising approach to improve underperforming parks [3] - Stifel upgraded Teradyne (TER) to Buy from Hold with a price target of $225, up from $162, anticipating accelerated growth due to a favorable shift in test revenue composition [4] Downgrades - Morgan Stanley downgraded Inspire Medical (INSP) to Equal Weight from Overweight with a price target of $130, up from $105, citing lack of visibility into the core business and long-term market potential [5] - Goldman Sachs downgraded Symbotic (SYM) to Sell from Neutral with an unchanged $47 price target, believing the valuation is stretched with a 185-times enterprise value to expected forward adjusted EBITDA multiple [5] - Oppenheimer downgraded Sound Point Meridian Capital (SPMC) to Perform from Outperform, removing the price target of $20, due to higher than expected negative impact on earnings from borrower call options [5] - Morgan Stanley downgraded 10x Genomics (TXG) to Equal Weight from Overweight with a price target of $20, up from $17, following a stock rally that placed the multiple in a reasonable spot relative to growth [5] - BofA downgraded PagerDuty (PD) to Underperform from No Rating with a $12 price target, citing demand headwinds and a pricing model change that may delay growth stabilization [5]

Core Insights - Happy Belly Food Group Inc. announces the grand opening of a new Heal Wellness location in Calgary, Alberta, marking the brand's 6th location in Calgary and 9th in Alberta, contributing to its expansion in Western Canada [1][3][4] Expansion and Growth - Heal Wellness currently operates 28 locations and has over 168 in development, indicating strong growth potential within the quick-service restaurant (QSR) sector focused on wellness [4][5] - The new location in Bridgeland is strategically positioned to attract a diverse customer base, including young professionals, families, and health-conscious consumers, enhancing Heal's market presence [3][4] Business Model and Strategy - The company emphasizes a scalable, asset-light growth model, partnering with strong local operators to maximize the brand's reach in high-quality trade areas [3][4] - The multi-unit franchisee in Calgary is committed to expanding their Heal portfolio, aiming for a total of 15 units, showcasing the brand's attractive unit economics [3][4] Brand Positioning - Heal Wellness aims to establish itself as a leading smoothie bowl and wellness QSR brand in Western Canada, focusing on fresh, energizing food options that cater to busy lifestyles [3][8] - The brand prides itself on using high-quality superfood ingredients in its offerings, which include smoothie bowls and smoothies designed to support active lifestyles [8]

Core Insights - Happy Belly Food Group Inc. has announced the grand opening of its first Rosie's Burgers location in Atlantic Canada, specifically in Halifax, Nova Scotia, marking the 10th location for the brand in Canada [1][3]. Expansion Strategy - The opening in Halifax is seen as a significant milestone in Rosie's national rollout, highlighting the strength of the brand and the franchise model [3]. - The company has secured 115 Rosie's locations under multi-unit and area development agreements across key Canadian provinces, positioning the brand for rapid scaling as U.S. development begins [5]. Franchise Operations - The new Halifax restaurant is operated by an experienced multi-unit franchisee with a strong track record in the restaurant and hospitality sector, which instills confidence in the opening [5]. - Happy Belly's franchise system focuses on partnering with high-caliber operators to ensure long-term, sustainable performance [5]. Growth Metrics - Across its portfolio, Happy Belly is advancing a disciplined growth strategy with 626 contractually committed retail franchise locations in various stages of development, construction, and operation [5].

Core Viewpoint - Companies with a strong history of dividend payments and increases are attractive to income-focused investors, with Open Text, Restaurant Brands, and Essential Utilities recently announcing dividend hikes and offering yields over 3% [1] Open Text - Open Text Corp. is an information management software company that assists businesses in organizing, storing, and protecting data [2] - The company has raised its dividend for 12 consecutive years, with a recent increase of 5% to $0.2750 per share, translating to an annual payout of $1.10 per share [3] - The current dividend yield for Open Text is 3.30% [3] - As of September 30, the company's annual revenue was $5.19 billion, and it reported Q1 2026 revenues of $1.29 billion and EPS of $1.05, both exceeding consensus estimates [4] Restaurant Brands International - Restaurant Brands International Inc. operates well-known quick-service restaurant brands including Tim Hortons, Burger King, Popeyes, and Firehouse Subs [5] - The company has increased its dividends for 10 consecutive years, with a recent hike from $0.58 to $0.62 per share, equating to an annual payout of $2.48 per share [6] - The current dividend yield for Restaurant Brands is 3.65% [6] - As of September 30, the company's annual revenue was $9.26 billion, and it reported Q3 2025 EPS of $1.03 and revenues of $2.45 billion, both surpassing consensus estimates [7] Essential Utilities - Essential Utilities Inc. provides water, wastewater, and natural gas services in the U.S. [7] - The company has increased its dividends for 34 consecutive years, with a recent hike of 5.25% to $0.3426 per share, resulting in an annual payout of $1.37 per share [8] - The current dividend yield for Essential Utilities is 3.54% [8]

Core Point - A federal judge has ruled against customers attempting to sue Burger King regarding the advertising of its Whopper sandwiches, stating that the claims are too varied to warrant a nationwide class action certification [1] Group 1 - The lawsuit against Burger King involves customers who allege misleading advertising related to the Whopper sandwiches [1] - The judge's decision indicates that the claims presented by the customers lack sufficient commonality to form a class action [1] - This ruling represents a significant legal hurdle for the plaintiffs seeking to challenge Burger King's advertising practices on a national scale [1]