NYSE$QSR

Restaurant Brands International Inc. · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

RBI reported Q3 2023 earnings with system-wide sales growth and franchisee profitability.

Restaurant Brands International reported strong Q3 2023 results, with a 10.9% increase in system-wide sales and growth in home market franchisee profitability. Consolidated comparable sales increased by 7.0%, driven by growth at TH Canada and BK International and US. The company returned over $360 million of capital to shareholders while investing in growth and reducing net leverage.

  • Consolidated comparable sales increased 7.0% and net restaurants grew 4.2% versus the prior year.
  • System-wide sales increased 10.9% year-over-year.
  • Net Income was $364 million versus $530 million in prior year.
  • Adjusted Diluted EPS of $0.90 decreased (5.6)% organically versus $0.96 in the prior year.

Headline financials

Total Revenue

$1.84B

Previous: $1.73B+6.4%
EPS (adj)

$0.90

Previous: $0.96-6.2%
TH Comparable Sales

6.8%

Previous: 9.8%-30.6%
BK Comparable Sales

7.2%

Previous: 10.3%-30.1%
Popeyes Comparable Sales

7.0%

Previous: 3.1%+125.8%
TH Restaurant Count

5.7K

Previous: 5.4K+5.5%
BK Restaurant Count

19.0K

Previous: 19.4K-1.9%
Popeyes Restaurant Count

4.4K

Previous: 3.9K+11.3%
Capital Expenditures

-$73M

Previous: -$52M-40.4%
Free Cash Flow

$291M

Previous: $478M-39.1%
Net Income

$364M

Previous: $530M-31.3%
Operating Income

$582M

Previous: $561M+3.7%
Gross Profit

$1.21B

Previous: $1.11B+8.6%
Cash & Equivalents

$1.31B

Previous: $946M+38.5%
Total Assets

$23.1B

Previous: $22.6B+2.3%
Stock-Based Comp

$49M

Previous: $34M+44.1%

Revenue & EPS history

RBI · Revenue · Quarterly

$1.84B

Q3 2023+6.4%vs Q3 2022
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

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

Tailwinds

  • Expectations regarding the effects and continued impact of the macroeconomic environment from the war in Ukraine.
  • Expectations regarding the effects and continued impact of the COVID-19 pandemic.
  • Expectations regarding the effects and continued impact of the conflict in the Middle East.
  • Expectations regarding the effects and continued impact of related macro-economic pressures, such as inflation, rising interest rates and currency fluctuations, on our results of operations, business, liquidity, prospects and restaurant operations.
  • Expectations regarding those of our digital, marketing, remodel and technology enhancement initiatives and 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.

Headwinds

  • Risks related to unforeseen events such as pandemics.
  • Risks related to the supply chain.
  • Risks related to ownership and leasing of properties.
  • Risks related to our franchisees financial stability and their ability to access and maintain the liquidity necessary to operate their business.
  • Risks related to our fully franchised business model.

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 Q3 2023

Historical avgQ3 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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