NYSE$QSR

Restaurant Brands International Inc. · Q4 2021 earnings

Q4 2021 earnings · · Investor relations

Briefing

Restaurant Brands International Inc. reported strong Q4 2021 results with system-wide sales growth and sequential improvements across all brands.

Restaurant Brands International Inc. reported strong Q4 2021 results, with global system-wide sales growing by 14% year-over-year. Comparable sales improved sequentially across all brands, including Tim Hortons Canada and Burger King U.S. Global digital sales increased by over 65% year-over-year, reaching $10 billion in 2021, representing nearly 30% of system-wide sales. The company returned $1.5 billion of capital to shareholders and acquired Firehouse Subs.

  • Global fourth quarter system-wide sales grew 14% year-over-year.
  • Fourth quarter comparable sales improved sequentially across all brands, including at Tim Hortons Canada and Burger King U.S.
  • Global digital sales were up over 65% year-over-year to $10 billion in 2021, representing nearly 30% of system-wide sales.
  • Restaurant growth returned to over 1,200 units with Tim Hortons and Popeyes gaining traction internationally.

Headline financials

Total Revenue

$1.55B

Previous: $1.36B+13.8%
EPS (adj)

$0.74

Previous: $0.53+39.6%
TH Comparable Sales

10.3%

Previous: -11.0%+193.6%
BK Comparable Sales

11.3%

Previous: -7.9%+243.0%
Popeyes Comparable Sales

-0.4%

Previous: -5.8%+93.1%
TH Restaurant Count

5.3K

Previous: 4.9K+6.9%
BK Restaurant Count

19.2K

Previous: 18.6K+3.3%
Popeyes Restaurant Count

3.7K

Previous: 3.5K+7.4%
Capital Expenditures

$36M

Previous: $46M-21.7%
Free Cash Flow

$1.62B

Previous: $267M+506.7%
Net Income

$262M

Previous: $139M+88.5%
Operating Income

$416M

Previous: $373M+11.5%
Gross Profit

$632M

Previous: $764M-17.3%
Cash & Equivalents

$1.09B

Previous: $1.56B-30.3%
Total Assets

$23.2B

Previous: $22.8B+2.1%
Stock-Based Comp

$40M

Previous: $19M+110.5%

Revenue & EPS history

RBI · Revenue · Quarterly

$1.55B

Q4 2021+13.8%vs Q4 2020
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

RBI · $1.54B total across 3 segments · Q4 2021

  • Tim Hortons
    $916M+17.1%
  • Burger King
    $480M+10.6%
  • Popeyes
    $145M+2.1%

Forward guidance

RBI expects to see a continued impact from COVID-19 on its results in 2022 and is targeting a total of $2.16 in dividends per common share and partnership exchangeable unit of RBI LP for 2022.

Tailwinds

  • RBI expects to continue to sign partnerships globally and accelerate future growth.
  • RBI is targeting a total of $2.16 in dividends per common share and partnership exchangeable unit of RBI LP for 2022.
  • RBI believes the agreement will position both the Popeyes and Burger King brands to accelerate growth in China in the upcoming years.
  • The company expects to agree to pay approximately $100 million in 2022, $72 million of which was recorded as Litigation settlements and reserves, net for 2021 to resolve business disputes that arose during 2021 with counterparties to the master franchise agreements for Burger King and Popeyes in China.
  • RBI is improving sustainable outcomes related to its food, the planet, and people and communities through its Restaurant Brands for Good framework.

Headwinds

  • RBI expects to see a continued impact from COVID-19 on its results in 2022.
  • Local conditions are expected to continue to dictate limitations on restaurant operations, capacity, and hours of operation.
  • COVID-19 contributed to labor challenges, which in some regions resulted in reduced operating hours and service modes at select restaurants as well as supply chain pressures.
  • Increases in cases and new variants have caused certain markets to re-impose temporary restrictions as a result of government mandates.
  • The company is exposed to risks related to unforeseen events such as pandemics, supply chain, ownership and leasing of properties, franchisees financial stability, domestic and international competition, technology, and changes in applicable tax and other laws and regulations.

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 Q4 2021

Historical avgQ4 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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