NYSE$QSR

Restaurant Brands International Inc. · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

RBI reported a strong Q1 2023 with double-digit comparable sales and system-wide sales growth, translating into bottom-line growth for franchisees and the company.

Restaurant Brands International (RBI) reported a solid start to 2023, with double-digit comparable sales and system-wide sales growth. Consolidated comparable sales increased by 10.3%, and net restaurants grew by 4.2%. Net income reached $277 million, and adjusted EBITDA increased by 15.6% to $588 million. Diluted EPS was $0.61, while adjusted diluted EPS rose by 22.1% to $0.75.

  • Consolidated comparable sales increased 10.3% and net restaurants grew 4.2% year-over-year.
  • System-wide sales increased 14.7% year-over-year.
  • Net Income of $277 million versus $270 million in prior year.
  • Adjusted Diluted EPS of $0.75 increased 22.1% organically versus the prior year.

Headline financials

Total Revenue

$1.59B

Previous: $1.45B+9.6%
EPS (adj)

$0.75

Previous: $0.64+17.2%
TH Comparable Sales

13.8%

Previous: 8.4%+64.3%
BK Comparable Sales

10.8%

Previous: 10.3%+4.9%
Popeyes Comparable Sales

5.6%

Previous: -3.0%+286.7%
TH Restaurant Count

5.6K

Previous: 5.3K+5.6%
BK Restaurant Count

18.9K

Previous: 19.3K-1.8%
Popeyes Restaurant Count

4.2K

Previous: 3.8K+10.8%
Capital Expenditures

-$18M

Previous: -$10M-80.0%
Free Cash Flow

$259M

Previous: $260M-0.4%
Net Income

$277M

Previous: $270M+2.6%
Operating Income

$447M

Previous: $450M-0.7%
Gross Profit

$1.04B

Previous: $957M+8.7%
Cash & Equivalents

$1.03B

Previous: $895M+15.4%
Total Assets

$22.5B

Previous: $23.2B-2.8%
Stock-Based Comp

$45M

Previous: $27M+66.7%

Revenue & EPS history

RBI · Revenue · Quarterly

$1.59B

Q1 2023+9.6%vs Q1 2022
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Revenue by segment

RBI · $1.59B total across 4 segments · Q1 2023

  • Tim Hortons
    $900M+8.6%
  • Burger King
    $484M+9.3%
  • Popeyes
    $168M+13.5%
  • Firehouse Subs
    $37M+19.4%

Forward guidance

The press release contains forward-looking statements regarding the macroeconomic environment, the impact of the war in Ukraine and COVID-19, and related macro-economic pressures such as inflation, rising interest rates and currency fluctuations. It also discusses expectations regarding digital, marketing, remodel and technology enhancement initiatives, including the 'Reclaim the Flame' plan for Burger King. The company's growth opportunities, plans, and strategies for each brand, including global expansion and restaurant openings, are also mentioned.

Tailwinds

  • Double-digit comparable sales and system-wide sales growth.
  • Top line sales momentum translating into bottom line growth for franchisees and the company.
  • Focus on improving operations and delivering a great guest experience.
  • Planned investments in advertising, digital capabilities, remodels, and restaurant technology.
  • Commitment to long-term, sustainable growth through global expansion and restaurant openings.

Headwinds

  • Increases in commodity, labor, and energy costs due to macroeconomic factors.
  • Potential impact of further increases in inflation on global, Canadian, and U.S. economies.
  • Risk of foreign exchange volatility and rising interest rates.
  • Potential adverse impact if the company and franchisees cannot adjust prices sufficiently to offset cost increases without negatively impacting consumer demand.
  • Risks related to unforeseen events such as pandemics and supply chain disruptions.

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 2023

Historical avgQ1 2023

-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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