NYSE$QSR

Restaurant Brands International Inc. · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

RBI's Q3 2024 performance reflected resilience and strategic investments, with adjusted operating income growth and key brand developments.

Restaurant Brands International (RBI) reported a consolidated comparable sales increase of 0.3% and net restaurant growth of 3.8%. Income from Operations was $577 million, and Adjusted Operating Income increased 6.1% organically to $652 million. Diluted EPS was $0.79, while Adjusted Diluted EPS increased 4.6% organically to $0.93. The company is on track to deliver 8%+ organic Adjusted Operating Income growth for 2024.

  • Consolidated comparable sales increased by 0.3%, with net restaurant growth at 3.8%.
  • Adjusted Operating Income grew by 6.1% organically, reaching $652 million.
  • Diluted EPS remained consistent at $0.79, while Adjusted Diluted EPS rose to $0.93.
  • RBI is confident in achieving its 8%+ Adjusted Operating Income growth target for 2024.

Headline financials

Total Revenue

$2.29B

Previous: $1.84B+24.7%
EPS

$0.79

Previous: $0.90-12.2%
System-wide Sales Growth

3.2%

No prior period
TH Comparable Sales

2.3%

Previous: 6.8%-66.2%
BK Comparable Sales

-0.7%

Previous: 7.2%-109.7%
Popeyes Comparable Sales

-4.0%

Previous: 7.0%-157.1%
FHS Comparable Sales

-4.8%

No prior period
TH Restaurant Count

4.5K

Previous: 5.7K-21.0%
BK Restaurant Count

7.1K

Previous: 19.0K-62.6%
Popeyes Restaurant Count

3.5K

Previous: 4.4K-20.8%
FHS Restaurant Count

1.3K

No prior period
International Restaurant Count

15.1K

No prior period
System Restaurant Count

31.5K

No prior period
Net Restaurant Growth

3.8%

No prior period
Adjusted Operating Income

$652M

No prior period
Adjusted EBITDA

$748M

No prior period
Capital Expenditures

-$124M

Previous: -$73M-69.9%
Free Cash Flow

$233M

Previous: $291M-19.9%
Net Income

$357M

Previous: $364M-1.9%
Operating Income

$577M

Previous: $582M-0.9%
Gross Profit

$2.29B

Previous: $1.21B+89.8%
Total Assets

$25.1B

Previous: $23.1B+8.6%
Stock-Based Comp

$37M

Previous: $49M-24.5%

Revenue & EPS history

RBI · Revenue · Quarterly

$2.29B

Q3 2024+24.7%vs Q3 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 expects Adjusted Interest Expense, net between $565 million and $575 million and consolidated capital expenditures, tenant inducements and incentives (excluding RH) of approximately $300 million. RBI now expects Segment G&A (excluding RH) for 2024 between $640 million and $650 million, including share-based compensation and non-cash incentive compensation expense between $170 million and $175 million. Long-term consolidated performance that the Company continues to expect to achieve, on average, from 2024 to 2028: •3%+ Comparable Sales; •5%+ Net Restaurant Growth; •8%+ System-wide Sales growth; and •Adjusted Operating Income growth at least as fast as system-wide sales growth.

Tailwinds

  • Expects Adjusted Interest Expense, net between $565 million and $575 million.
  • Consolidated capital expenditures, tenant inducements and incentives (excluding RH) of approximately $300 million.
  • Segment G&A (excluding RH) for 2024 between $640 million and $650 million.
  • Share-based compensation and non-cash incentive compensation expense between $170 million and $175 million.
  • Long-term consolidated performance that the Company continues to expect to achieve, on average, from 2024 to 2028

Headwinds

  • Substantial indebtedness could adversely affect financial condition.
  • Global economic conditions may affect customers' ability to purchase products.
  • Relationship with franchisees and their financial stability pose risks.
  • Supply chain operations and real estate ownership involve risks.
  • Fluctuations in interest rates and currency exchange markets present challenges.

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 2024

Historical avgQ3 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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