NYSE$QSR

Restaurant Brands International Inc. · Q1 2021 earnings

Q1 2021 earnings · · Investor relations

Briefing

RBI returned to growth with system-wide sales up compared to 2019 and added 148 net new restaurants.

Restaurant Brands International Inc. reported positive Q1 2021 results, signaling a return to growth with system-wide sales surpassing Q1 2019. Net restaurant growth nearly matched the best-ever Q1 performance, driven by digital initiatives and recovery from the pandemic.

  • System-wide sales surpassed Q1 2019 levels, indicating a return to growth.
  • Net restaurant growth nearly matched the best-ever Q1 performance in 2018.
  • Tim Hortons' digital sales in Canada reached 31% in Q1, driven by two million app downloads in March.
  • Burger King U.S. launched a $1 Your Way value menu, showing encouraging results.

Headline financials

Total Revenue

$1.26B

Previous: $1.23B+2.9%
EPS (adj)

$0.55

Previous: $0.48+14.6%
TH Comparable Sales

-2.3%

Previous: -10.3%+77.7%
BK Comparable Sales

0.7%

Previous: -3.7%+118.9%
Popeyes Comparable Sales

1.5%

Previous: 26.2%-94.3%
TH Restaurant Count

5.0K

Previous: 4.9K+1.3%
BK Restaurant Count

18.7K

Previous: 18.8K-0.8%
Popeyes Restaurant Count

3.5K

Previous: 3.3K+4.8%
Capital Expenditures

-$15M

Previous: -$19M+21.1%
Free Cash Flow

$256M

Previous: $205M+24.9%
Net Income

$271M

Previous: $224M+21.0%
Operating Income

$442M

Previous: $389M+13.6%
Gross Profit

$859M

Previous: $826M+4.0%
Cash & Equivalents

$1.56B

Previous: $2.5B-37.4%
Total Assets

$22.9B

Previous: $22.6B+1.0%
Stock-Based Comp

$26M

Previous: $19M+36.8%

Revenue & EPS history

RBI · Revenue · Quarterly

$1.26B

Q1 2021+2.9%vs Q1 2020
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Revenue by segment

RBI · $1.26B total across 3 segments · Q1 2021

  • Tim Hortons
    $710M+1.6%
  • Burger King
    $407M+4.9%
  • Popeyes
    $143M+3.6%

Forward guidance

The company expects to see a continued impact from COVID-19 on its results in 2021 but is optimistic about the global growth potential and is working towards a return to historic levels of unit growth this year.

Tailwinds

  • Excited by the global growth potential of our brands.
  • Encouraged by this early momentum as we work toward a return to historic levels of unit growth this year.
  • Home market recovery from the pandemic is well-underway.
  • C$80M investment announced during the quarter to supercharge our advertising and digital platforms.
  • Digital channels will allow us to drive incrementality for our restaurants as well as a more personalized and valuable experience for our guests.

Headwinds

  • COVID-19 had a substantial impact on our global restaurant operations for the three months ended March 31, 2021.
  • Certain jurisdictions, such as Canada, Europe, and Brazil, that had eased restrictions during 2020, re-imposed lockdowns and curfews in the quarter ended March 31, 2021.
  • Expect local conditions to continue to dictate limitations on operations, capacity, and hours of restaurants.
  • Do not know the future impact COVID-19 will have on our business, or when our business will fully return to normal operations.
  • Expect to see a continued impact from COVID-19 on our results in 2021.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2021

Historical avgQ1 2021

-0.5%

Avg return

Earnings day

-0.5%

Avg return

5 days after

+0.5%

Avg return

30 days after

36%

19 / 53 earnings

Positive

+8.3%

Q2 2022

Best reaction

-7.0%

Q3 2021

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+2.5%-4.2%-11.1%
Q4 2025-6.2%-3.6%+2.8%
Q3 2025-2.0%+0.0%+8.0%
Q1 2025-0.5%-0.1%+5.0%
Q4 2024-1.6%-3.5%-1.2%
Q3 2024-2.5%-2.9%-0.4%
Q2 2024-0.0%+0.2%-4.1%
Q1 2024-0.8%+2.7%-9.6%
Q4 2023-2.2%-1.4%+4.2%
Q3 2023-3.0%-1.3%+5.1%
Q2 2023-1.7%-2.1%-9.6%
Q1 2023+1.7%+1.4%+6.7%
Q4 2022-3.5%-1.4%-9.6%
Q3 2022+4.5%+4.8%+14.3%
Q2 2022+8.3%+7.7%+7.7%
Q1 2022-4.7%-7.8%-7.2%
Q4 2021+2.5%-0.2%+1.3%
Q3 2021-7.0%-8.6%-5.2%
Q2 2021+3.1%+0.6%-0.4%
Q1 2021+3.9%+1.8%+2.9%
Q4 2020-1.7%-1.3%+5.7%
Q3 2020-4.9%-6.2%+7.0%
Q2 2020-6.9%-3.9%-2.9%
Q1 2020-0.6%-0.8%+10.7%
Q4 2019+4.0%+5.3%-25.1%
Q3 2019-5.2%-4.7%-3.2%
Q2 2019+4.7%+7.2%+7.8%
Q1 2019-1.8%+0.5%-0.8%
Q4 2018+2.5%+3.2%+0.5%
Q3 2018-0.8%-6.2%-2.6%
Q2 2018+0.8%-0.2%-9.1%
Q1 2018+2.6%+1.3%+8.3%
Q4 2017+2.2%+4.4%+2.8%
Q3 2017-3.3%-4.2%-2.0%
Q2 2017+2.4%+4.9%+3.4%
Q1 2017-2.9%-4.0%+5.0%
Q4 2016+6.0%+4.8%+6.7%
Q3 2016-5.3%-7.3%+1.6%
Q2 2016+4.2%+6.1%+7.7%
Q1 2016+2.0%
Q4 2015+7.8%
Q3 2014-4.6%
Q3 2015-4.6%
Q2 2015+0.4%
Q1 2014-3.4%
Q1 2015-1.9%
Q2 2013-1.4%
Q4 2014-1.4%
Q2 2014-1.4%
Q1 2013-1.4%
Q4 2013-1.4%
Q4 2012-1.4%
Q3 2013-1.4%

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