Restaurant Brands Q4 Earnings & Revenues Top Estimates, Rise Y/Y

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].