NYSE$QSR

Restaurant Brands International Inc. · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

RBI reported Q2 2024 earnings with system-wide sales growth and profitability driven by cost discipline.

Restaurant Brands International reported a consolidated system-wide sales increase of 5.0% year-over-year and global comparable sales growth of 1.9%. The company's net income increased to $399 million, and diluted EPS reached $0.88. Strategic transactions during the quarter are expected to strengthen long-term positioning in the US and China.

  • Consolidated comparable sales increased by 1.9%, and net restaurants grew by 4.0% compared to the previous year.
  • System-wide sales saw a 5.0% increase year-over-year.
  • Income from Operations reached $663 million, compared to $554 million in the prior year.
  • Net Income amounted to $399 million, an increase from $351 million in the previous year.

Headline financials

Total Revenue

$2.08B

Previous: $1.78B+17.2%
EPS (adj)

$0.86

Previous: $0.85+1.2%
Capital Expenditures

-$69M

Previous: -$48M-43.8%
Free Cash Flow

$330M

Previous: $303M+8.9%
Net Income

$399M

Previous: $351M+13.7%
Operating Income

$663M

Previous: $554M+19.7%
Gross Profit

$2.08B

Previous: $1.16B+78.8%
Total Assets

$24.8B

Previous: $23.1B+7.4%
Stock-Based Comp

$41M

Previous: $47M-12.8%

Revenue & EPS history

RBI · Revenue · Quarterly

$2.08B

Q2 2024+17.2%vs Q2 2023
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Revenue by segment

RBI · $1.84B total across 4 segments · Q3 2023

  • Tim Hortons
    $1.06B+2.6%
  • Burger King
    $538M+9.6%
  • Popeyes
    $188M+14.6%
  • Firehouse Subs
    $51M+34.2%

Forward guidance

RBI continues to expect consolidated capital expenditures, tenant inducements and incentives (excluding RH) of approximately $300 million. RBI now expects Adjusted Net Interest Expense, between $565 million and $575 million and Segment G&A (excluding RH) for 2024 between $640 million and $660 million, including share-based compensation and non-cash incentive compensation expense between $170 million and $180 million.

Tailwinds

  • Consolidated capital expenditures are expected to be approximately $300 million (excluding RH).
  • Adjusted Net Interest Expense is projected to be between $565 million and $575 million.
  • Segment G&A (excluding RH) is anticipated to range from $640 million to $660 million for 2024.
  • Share-based compensation and non-cash incentive compensation expense are expected to be between $170 million and $180 million.
  • Long-term consolidated performance from 2024 to 2028 expects 3%+ Comparable Sales.

Headwinds

  • Guidance excludes Restaurant Holdings (RH), indicating potential uncertainty in that segment.
  • The projections are subject to various risks and uncertainties, as detailed in RBI's filings with regulatory authorities.
  • Global economic conditions may affect consumer spending, impacting the company's performance.
  • Fluctuations in interest rates and currency exchange markets could affect financial results.
  • Unforeseen events such as pandemics and geopolitical conflicts could disrupt operations and performance.

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 2024

Historical avgQ2 2024

-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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