Restaurant Brands (QSR) Q2 Earnings & Revenues Beat, Up Y/Y

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].