Restaurant Brands International(US:QSR)2025-02-12 17:03Financial 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]