01—Abstract
Summary
Summary of the 10-K filed February 21, 2025. Cited figures are marked; the original filing is the authoritative source.
Restaurant Brands International Inc. (QSR) reported that it operates one of the world's largest quick service restaurant companies, with nearly $45 billiona in annual system-wide sales and more than 32,000 restaurants in more than 120 countries and territories as of December 31, 2024, approximately 95% of which are franchised.
Its four brands are Tim Hortons, Burger King, Popeyes and Firehouse Subs. Total revenues rose to $8.41 billionb in 2024 from $7.02 billion in 2023, driven mainly by restaurants acquired from franchisees (primarily the Carrols Acquisition, completed May 16, 2024) and higher system-wide sales. Net income fell to $1.45 billion from $1.72 billion, reflecting income tax expense of $364 million compared with a tax benefit in 2023, and a higher loss on early extinguishment of debt.
Adjusted Operating Income rose to $2.40 billionc from $2.20 billion. Balance sheet and capital allocation: cash and cash equivalents were $1.33 billion at year end, and the company had $1.25 billion of borrowing availability under its revolving credit facility. Total debt was $13.76 billion in principal, and substantially all consolidated assets are restricted under debt agreements.
Cash from operations was $1.50 billiond in 2024. The company paid $1.03 billion in dividends and distributions and repurchased no common shares in 2024, leaving $500 million under its authorization. The board declared a first-quarter 2025 dividend of $0.62 per share and targets $2.48 in total declared dividends for 2025.
Subsequent to year end, on February 14, 2025, RBI acquired substantially all remaining equity in Burger King China for approximately $158 million, which will be reported as a discontinued operation starting in the first quarter of 2025. The company plans to remodel and refranchise the acquired Carrols Burger King restaurants, and it expects 2025 capital expenditures of $400 million to $450 million.
02—Key points
Key Highlights
- Total revenues of $8.41 billion in 2024, up from $7.02 billion in 2023, primarily from the Carrols Acquisition and higher system-wide sales.
- Net income of $1.45 billion in 2024, down from $1.72 billion, mainly because of income tax expense of $364 million versus a tax benefit of $265 million in 2023.
- Adjusted Operating Income of $2.40 billion in 2024, up from $2.20 billion, with increases in every franchisor segment and the addition of the Restaurant Holdings segment ($44 million).
- System-wide sales of $44.48 billion, up 5.4%, with consolidated comparable sales growth of 2.3% in 2024.
- Total debt principal of $13.76 billion at December 31, 2024, including $6.00 billion of term loans and $10.8 billion of senior notes, against $1.33 billion of cash.
- Dividends of $0.62 per common share declared for Q1 2025, with a 2025 target of $2.48 in total declared dividends per share.
- Burger King China acquired for approximately $158 million on February 14, 2025, to be reported as a discontinued operation from Q1 2025.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2024filed February 21, 2025Financial Statements
FY2024 against FY2023
| Line item | FY2024FY2023 | Change |
|---|---|---|
| Revenue | $8.41B$7.02B | +19.7% |
| Operating Expenses | $5.99B$4.97B | +20.4% |
| Operating Income | $2.42B$2.05B | +17.9% |
| Net Income | $1.02B$1.19B | −14.2% |
| EPS (Basic) | $3.21$3.82 | −16.0% |
| EPS (Diluted) | $3.18$3.76 | −15.4% |
| Shares Outstanding (Basic) | 319.00M312.00M | +2.2% |
| Shares Outstanding (Diluted) | 454.00M456.00M | −0.4% |
05—Questions
Frequently Asked Questions
How did RBI's revenue and profitability change in 2024?
Total revenues increased to $8,406 million from $7,022 million, driven primarily by restaurants acquired from franchisees, mainly Carrols, and by growth in system-wide sales. Net income decreased to $1,445 million from $1,718 million, primarily because income tax expense was $364 million in 2024 compared with a $265 million benefit in 2023. Income from operations rose to $2,419 million from $2,051 million.
What acquisitions did RBI complete in 2024 and 2025?
RBI acquired Carrols Restaurant Group on May 16, 2024, for a total cash purchase price of $543 million, assuming about $431 million of debt, and acquired Popeyes China (PLK China) on June 28, 2024. On February 14, 2025, it acquired substantially all remaining equity in Burger King China for approximately $158 million, which will be reported as a discontinued operation.
How is RBI's debt and liquidity position?
At December 31, 2024, the company had cash and cash equivalents of $1,334 million and $1,248 million of borrowing availability under its revolving credit facility. Aggregate outstanding indebtedness was $13,759 million. The company stated it was in compliance with its financial debt covenants, and it expects cash flow from operations and revolver availability to provide sufficient liquidity for the next twelve months.
What is RBI's dividend and share repurchase policy?
The board declared a cash dividend of $0.62 per common share for the first quarter of 2025, payable April 4, 2025, and the company is targeting $2.48 in total declared dividends per share for 2025. The company did not repurchase any common shares in 2024. It had $500 million remaining under its $1,000 million share repurchase authorization, which runs until September 30, 2025. Future dividends remain at the board's discretion.
What are the main risks highlighted for RBI's business?
The filing highlights intense competition, the sensitivity of sales to consumer discretionary spending, commodity and labor cost increases, and reliance on franchisees, who operate about 95% of system restaurants. It also flags leverage from its debt, currency and interest-rate exposure, the integration and refranchising of acquired Carrols restaurants, and tax risks including changes to Canadian interest deductibility rules and OECD Pillar Two. 3G RBH holds about 26% of combined voting power.
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