NYSE$QSR

Restaurant Brands International Inc. · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

RBI's financial performance for Q2 2023 was reported, showcasing significant system-wide sales growth and improved profitability.

Restaurant Brands International (RBI) reported a strong second quarter in 2023, with a 14% increase in system-wide sales and a 9.6% increase in consolidated comparable sales. Net income increased to $351 million, and adjusted diluted EPS rose to $0.85. The company surpassed 30,000 restaurants globally, generating over $40 billion in system-wide sales over the last 12 months.

  • Consolidated comparable sales increased by 9.6%, and net restaurants grew by 4.1% year-over-year.
  • System-wide sales increased by 14.0% year-over-year.
  • Net income reached $351 million, compared to $346 million in the prior year.
  • Adjusted diluted EPS increased to $0.85, representing a 6.6% organic growth.

Headline financials

Total Revenue

$1.78B

Previous: $1.64B+8.3%
EPS (adj)

$0.85

Previous: $0.82+3.7%
TH Comparable Sales

11.4%

Previous: 12.2%-6.6%
BK Comparable Sales

10.2%

Previous: 10.0%+2.0%
Popeyes Comparable Sales

6.3%

Previous: 1.4%+350.0%
TH Restaurant Count

5.7K

Previous: 5.4K+5.8%
BK Restaurant Count

18.9K

Previous: 19.3K-1.9%
Popeyes Restaurant Count

4.3K

Previous: 3.9K+10.9%
Net Restaurant Growth

4.1%

No prior period
Capital Expenditures

-$48M

Previous: -$28M-71.4%
Free Cash Flow

$303M

Previous: $318M-4.7%
Net Income

$351M

Previous: $346M+1.4%
Operating Income

$554M

Previous: $541M+2.4%
Gross Profit

$1.16B

Previous: $1.06B+10.2%
Cash & Equivalents

$1.21B

Previous: $838M+44.7%
Total Assets

$23.1B

Previous: $22.8B+1.7%
Stock-Based Comp

$47M

Previous: $32M+46.9%

Revenue & EPS history

RBI · Revenue · Quarterly

$1.78B

Q2 2023+8.3%vs Q2 2022
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Revenue by segment

RBI · $1.78B total across 4 segments · Q2 2023

  • Tim Hortons
    $1.02B+5.0%
  • Burger King
    $529M+11.8%
  • Popeyes
    $183M+10.9%
  • Firehouse Subs
    $48M+45.5%

Forward guidance

The press release contains forward-looking statements regarding RBI's strategies to capitalize on growth opportunities, the effects of the macroeconomic environment, and digital, marketing, remodel and technology enhancement initiatives. These statements are subject to risks and uncertainties.

Tailwinds

  • Expectations regarding strategies to capitalize on growth opportunities for each of our brands our home markets and internationally.
  • Expectations regarding our digital, marketing, remodel and technology enhancement initiatives
  • Expectations regarding further expenditures relating to these initiatives, including our “Reclaim the Flame” plan to accelerate sales growth and drive franchisee profitability at Burger King
  • Expectations regarding future FHS Transaction costs
  • Evolving legislation and regulations in the area of franchise and labor and employment law

Headwinds

  • The effects and continued impact of the macroeconomic environment from the war in Ukraine
  • The effects and continued impact of the COVID-19 pandemic
  • Related macro-economic pressures, such as inflation, rising interest rates and currency fluctuations, on our results of operations, business, liquidity, prospects and restaurant operations and those of our franchisees
  • Risks related to unforeseen events such as pandemics
  • Risks related to RBI’s ability to compete domestically and internationally in an intensely competitive industry

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 2023

Historical avgQ2 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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