NYSE$QSR

Restaurant Brands International Inc. · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Reported improved global system-wide sales growth, accelerated unit growth, scaled up digital sales, expanded liquidity, and authorized a share buyback program.

Restaurant Brands International reported positive financial results for Q2 2021, with continued improvement in global system-wide sales growth, accelerating to +4% compared to 2019. Unit growth returned to pre-pandemic levels with 378 net new restaurants opened in the first half of the year. Digital sales in home markets scaled up by nearly +60% year over year and +15% sequentially. The company's liquidity expanded to $2.8 billion, and net leverage declined significantly. The Board authorized a $1 billion buyback program, demonstrating confidence in the company's value creation opportunity.

  • Global system-wide sales growth improved, reaching +4% compared to 2019.
  • Unit growth returned to pre-pandemic levels, with 378 net new restaurants opened in H1.
  • Digital sales in home markets scaled up by nearly +60% year over year and +15% sequentially.
  • Liquidity expanded to $2.8 billion, net leverage declined, and a $1 billion buyback program was authorized.

Headline financials

Total Revenue

$1.44B

Previous: $1.05B+37.2%
EPS (adj)

$0.77

Previous: $0.33+133.3%
TH Comparable Sales

27.6%

Previous: -29.3%+194.2%
BK Comparable Sales

18.2%

Previous: -13.4%+235.8%
Popeyes Comparable Sales

-0.3%

Previous: 24.8%-101.2%
TH Restaurant Count

5.1K

Previous: 4.9K+2.7%
BK Restaurant Count

18.8K

Previous: 18.8K+0.1%
Popeyes Restaurant Count

3.6K

Previous: 3.4K+5.7%
Capital Expenditures

-$46M

Previous: -$39M-17.9%
Free Cash Flow

$345M

Previous: $125M+176.0%
Net Income

$391M

Previous: $164M+138.4%
Operating Income

$488M

Previous: $243M+100.8%
Gross Profit

$971M

Previous: $709M+37.0%
Cash & Equivalents

$1.76B

Previous: $1.54B+14.4%
Total Assets

$23.2B

Previous: $22B+5.6%
Stock-Based Comp

$14M

Previous: $20M-30.0%

Revenue & EPS history

RBI · Revenue · Quarterly

$1.44B

Q2 2021+37.2%vs Q2 2020
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Revenue by segment

RBI · $1.44B total across 3 segments · Q2 2021

  • Tim Hortons
    $831M+46.6%
  • Burger King
    $459M+32.3%
  • Popeyes
    $148M+10.4%

Forward guidance

The company expects to see a continued impact from COVID-19 on its results in 2021. The company expects local conditions to continue to dictate limitations on restaurant operations, capacity, and hours of operation. With the pandemic affecting consumer behavior, the importance of digital sales, including delivery, has grown. The company expects to continue to support enhancements of its digital and marketing capabilities.

Tailwinds

  • Continued support enhancements of our digital and marketing capabilities.
  • Focus on quality menu items
  • Rapid adoption of our digital channels by our guests
  • Acceleration in new restaurant openings around the world
  • Dedicated franchise partners

Headwinds

  • Continued impact from COVID-19 on our results in 2021.
  • Local conditions continue to dictate limitations on restaurant operations, capacity, and hours of operation.
  • Pandemic affecting consumer behavior
  • Risks related to unforeseen events such as pandemics
  • Risks related to supply chain

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 Q2 2021

Historical avgQ2 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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