NYSE$QSR

Restaurant Brands International Inc. · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Restaurant Brands International reported Q4 2023 results with revenue growth driven by system-wide sales increases across all segments and strategic investments.

Restaurant Brands International (RBI) reported strong Q4 2023 results, with global system-wide sales growing nearly 10% and comparable sales up nearly 6%. The company is focused on delivering better experiences for guests and profitability for franchisees, while making long-term investments for growth. RBI reported total revenues of $1.82 billion and net income of $726 million for the quarter.

  • Global system-wide sales grew nearly 10% in Q4 2023.
  • Comparable sales increased by nearly 6%, driven by Tim Hortons Canada and Burger King US.
  • Digital sales grew over 20% year-over-year, reaching $14 billion in 2023.
  • Home market franchisee profitability increased 30% year-over-year, on average.

Headline financials

Total Revenue

$1.82B

Previous: $1.69B+7.8%
EPS (adj)

$0.75

Previous: $0.72+4.2%
TH Comparable Sales

8.4%

Previous: 9.4%-10.6%
BK Comparable Sales

6.3%

Previous: 8.4%-25.0%
Popeyes Comparable Sales

5.5%

Previous: 3.8%+44.7%
TH Restaurant Count

4.5K

Previous: 5.6K-19.2%
BK Restaurant Count

7.1K

Previous: 19.8K-63.9%
Popeyes Restaurant Count

3.4K

Previous: 4.1K-17.0%
Capital Expenditures

-$45.6M

Previous: $48M-195.0%
Net Income

$726M

Previous: $336M+116.1%
Operating Income

$468M

Previous: $346M+35.3%
Gross Profit

$1.07B

Previous: $649M+64.2%
Stock-Based Comp

$53M

Previous: $43M+23.3%

Revenue & EPS history

RBI · Revenue · Quarterly

$1.82B

Q4 2023+7.8%vs Q4 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

RBI provided forward-looking statements regarding macroeconomic pressures, digital and marketing initiatives, franchisee contributions, remodel programs, net leverage targets, and dividend targets for 2024.

Tailwinds

  • Expectations regarding the effects and continued impact of the 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
  • Expectations regarding further expenditures relating to digital, marketing, remodel and technology enhancement initiatives, including our “Reclaim the Flame” plan to accelerate sales growth and drive franchisee profitability at Burger King
  • Expectation that franchisee contributions to the ad fund will increase in 2025
  • Expectations around Royal Refresh investments and remodel program
  • Confidence of reaching target net leverage

Headwinds

  • Risks related to franchisees financial stability and their ability to access and maintain the liquidity necessary to operate their business
  • Risks arising from macroeconomic conditions, including inflation and raising interest rates and its impact on discretionary spending
  • Risks related to unforeseen events such as pandemics
  • Risks related to supply chain
  • Risks related to ownership and leasing of properties

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 2023

Historical avgQ4 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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