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QSR · Restaurant Brands International

36 filings

10-Q

QSR 10-Q Quarterly Reports

Restaurant Brands International - 36 quarterly reports

Filing record · 2016–202610-K1110-Q338-K143

2026-Q3
Restaurant Brands International Quarterly Report for Q3 Ended Sep 30, 2026
Restaurant Brands International Inc. reported third-quarter 2026 total revenues of $2,525 million, up from $2,449 million in the prior-year quarter, and income from operations of $696 million versus $663 million. Net income attributable to common shareholders was $542 million, or $1.54 diluted net income per share, compared with $315 million and $0.96 in the third quarter of 2025. The quarter's income tax line was a benefit of $133 million, against $94 million of expense a year earlier, driven by movements in net deferred taxes tied to intra-group reorganizations. Adjusted Operating Income rose to $737 million from $702 million, with increases in the INTL, BK, TH and FHS segments partly offset by declines in PLK and RH. For the nine months ended September 30, 2026, total revenues were $7,309 million versus $6,968 million, and income from operations was $2,018 million versus $1,581 million. The prior-year period included $244 million of other operating expenses, net, largely foreign exchange losses, whereas 2026 shows a net gain of $27 million in that line. Cash provided by operating activities from continuing operations was $1,308 million, compared with $1,159 million. Cash and cash equivalents were $974 million at September 30, 2026, and borrowing availability under the Revolving Credit Facility was $1,248 million. The company repurchased $232 million of common shares during the nine months and paid $875 million in dividends and Partnership exchangeable unit distributions in the period. At September 30, 2026, total debt, net was $13,240 million, and the company stated it was in compliance with its financial debt covenants. The company declared a quarterly dividend of $0.65 per common share payable January 5, 2027, and reported that it had $751 million remaining under its share repurchase authorization as of October 23, 2026. The filing also discloses an agreement-in-principle, reached in July 2026, to settle a shareholder class action related to the Carrols Acquisition, subject to court approval, and it describes an ongoing Sherman Act class action brought by former Burger King employees for which the company cannot predict the outcome.
Oct 29, 2026
2026-Q2
Restaurant Brands International Quarterly Report for Q2 Ended Jun 30, 2026
Restaurant Brands International Inc. reported higher second-quarter 2026 results. Total revenues were $2,520 million for the three months ended June 30, 2026, up from $2,410 million a year earlier, and $4,784 million for the six months, up from $4,519 million. Income from operations rose to $716 million from $483 million for the quarter, helped by a $26 million net other operating income in 2026 versus $149 million of other operating expense in 2025, largely driven by foreign exchange remeasurement gains. Net income attributable to common shareholders was $507 million, or $1.45 diluted EPS from continuing operations, versus $189 million, or $0.57 diluted EPS, in the prior-year quarter. Adjusted Operating Income rose to $715 million from $668 million, with growth in the INTL, BK, TH and FHS segments partly offset by a decline in PLK. System-wide sales growth was 6.4% for the quarter on a constant currency basis, and comparable sales rose 3.8%. Burger King comparable sales increased 8.6% in the quarter, while Popeyes (PLK) comparable sales declined 5.1%. The company re-established a joint venture for BK China with CPE, in which RBI holds about a 17% stake, and resumed recognizing franchise royalties from it. Cash and cash equivalents were $1,063 million at June 30, 2026, with $1,248 million of revolver borrowing availability, and total debt, net of $13,254 million was modestly lower than at year-end 2025. Cash flow from operations for the six months was $757 million, up from $567 million. The company repurchased $171 million of common shares in the first half under a $1,000 million authorization, leaving $829 million available at June 30, 2026, and paid dividends of $0.65 per share in the quarter. Subsequent to quarter end, the board declared another $0.65 per share dividend payable October 2, 2026, and an agreement-in-principle was reached in July 2026 to settle the Carrols shareholder lawsuit, subject to court approval.
Aug 6, 2026
2026-Q1
Restaurant Brands International Quarterly Report for Q1 Ended Mar 31, 2026
Restaurant Brands International Inc. reported first-quarter 2026 total revenues of $2.26 billion, up from $2.11 billion in the prior-year quarter, with income from operations rising to $606 million from $435 million. Net income attributable to common shareholders was $338 million, or $0.97 per diluted share, compared with $159 million, or $0.49 per diluted share, a year earlier. The filing attributes the operating income increase primarily to a net foreign exchange gain on remeasurement of intercompany balances (versus a net loss in the prior year) and higher segment income in the INTL, BK, TH and FHS segments. Adjusted Operating Income, the company's non-GAAP segment measure, was $610 million versus $539 million. The effective tax rate fell to 7.9% from 26.9%, partly due to a discrete tax benefit from an intra-group reorganization. Operating metrics improved: consolidated system-wide sales growth was 6.2% on a constant currency basis, and comparable sales rose 3.2%, versus 2.8% and 0.1% in the prior year. Net restaurant growth was 2.6%, and the system counted 32,985 restaurants at quarter end. Cash provided by operating activities from continuing operations was $227 million, compared with $118 million a year earlier. Cash and cash equivalents were $1,012 million at March 31, 2026, and the company had $1,248 million of revolver availability. The company also established a joint venture with CPE Alder Investment Limited for BK China, in which RBI holds about 17% and CPE holds about 83%, and it is sunsetting its Restaurant Holdings (RH) segment, which posted a $1 million Adjusted Operating Loss in the quarter. Subsequent to quarter end, RBI declared a $0.65 per share dividend payable July 7, 2026, and expects a discrete tax benefit of approximately $170 million in the quarter ending June 30, 2026.
May 6, 2026
2025-Q3
Restaurant Brands International Quarterly Report for Q3 Ended Sep 30, 2025
Restaurant Brands International Inc. (QSR) reported third-quarter 2025 total revenues of $2.45 billion, up from $2.29 billion a year earlier, with income from operations of $663 million versus $577 million. Net income attributable to common shareholders was $315 million, or $0.96 per diluted share, compared with $252 million, or $0.79 per share, in the prior-year quarter. Nine-month results were weaker: total revenues rose to $6.97 billion from $6.11 billion, but income from operations fell to $1.58 billion from $1.78 billion, driven mainly by a $208 million foreign exchange remeasurement loss within other operating expenses and the non-recurrence of a $79 million Carrols step acquisition gain. Net income attributable to common shareholders was $663 million for the nine months, compared with $762 million. Adjusted Operating Income, the company's segment income measure, increased 8% to $702 million in the quarter and 5% to $1.91 billion for the nine months, with each of the five franchisor segments (TH, BK, PLK, FHS, INTL) reporting higher segment income. System-wide sales growth was 6.9% in the quarter and comparable sales rose 4.0%. Cash provided by operating activities was $1.16 billion for the nine months, and the company had $1.21 billion in cash and cash equivalents at September 30, 2025, with $1.25 billion of revolver availability. The filing also details the BK China acquisition for approximately $151 million, which is now held for sale and reported as discontinued operations, and the company's pending search for a new controlling shareholder. A new $1.0 billion share repurchase authorization runs through September 30, 2027, and the board declared a $0.62 per share dividend payable January 6, 2026. Two shareholder class actions remain pending, one relating to Burger King franchise no-hire clauses and one relating to the Carrols acquisition, and the company says it cannot predict their outcomes.
Oct 30, 2025
2025-Q2
Restaurant Brands International Quarterly Report for Q2 Ended Jun 30, 2025
Restaurant Brands International Inc. reported second-quarter 2025 total revenues of $2.41 billion, up from $2.08 billion a year earlier, driven mainly by Company restaurant sales from restaurants acquired in the Carrols Acquisition and higher supply chain sales. Income from operations fell to $483 million from $663 million, primarily because the prior-year period included a $79 million Carrols step acquisition gain and because of $132 million of foreign exchange losses recorded in other operating expenses. Net income attributable to common shareholders was $189 million, or $0.57 diluted per share, versus $280 million, or $0.88, in the prior-year quarter. Adjusted Operating Income, the company's segment income measure, rose to $668 million from $632 million, with increases in all segments. For the six months ended June 30, 2025, cash provided by operating activities from continuing operations was $567 million, compared with $482 million a year earlier. Cash and cash equivalents were $1,026 million at June 30, 2025, and borrowing availability under the Revolving Credit Facility was $1,248 million. The company paid $0.62 per share dividends in the quarter and declared another $0.62 per share payable October 7, 2025. Total debt, net, was $13,613 million at June 30, 2025. The filing also reports the acquisition of BK China for approximately $151 million, which is classified as discontinued operations and held for sale, with the company expecting to find a new controlling shareholder within twelve months. On August 6, 2025, the board approved a new share repurchase authorization of up to $1,000 million running from September 15, 2025 to September 30, 2027. Two shareholder class action lawsuits remain pending, one related to Burger King franchise agreement hiring clauses and one alleging breach of fiduciary duty in the Carrols acquisition.
Aug 7, 2025
2025-Q1
Restaurant Brands International Quarterly Report for Q1 Ended Mar 31, 2025
Restaurant Brands International Inc. (QSR) reported first-quarter 2025 total revenues of $2,109 million, up from $1,739 million a year earlier, driven primarily by the net impact of restaurants acquired from franchisees, mainly the Carrols Acquisition, partially offset by an unfavorable FX Impact. Income from operations fell to $435 million from $544 million, mainly due to an unfavorable change in Other operating expenses (income), net, which was $83 million versus $(18) million in the prior year, largely from a $75 million net loss on foreign exchange. Net income attributable to common shareholders was $159 million, or $0.49 per diluted share, compared with $230 million, or $0.72 per diluted share, a year earlier. Adjusted Operating Income was essentially flat at $539 million versus $540 million, with TH and INTL segment income declining and RH contributing $7 million. System-wide sales growth was 2.8% and comparable sales were 0.1%, versus 8.1% and 4.6% in the prior-year period. Cash and cash equivalents were $899 million at March 31, 2025, with $1,248 million of Revolving Credit Facility borrowing availability. Operating cash flow from continuing operations was $118 million, compared with $148 million, and capital expenditures were $64 million in payments for property and equipment. The company acquired BK China on February 14, 2025 for approximately $151 million in cash and is presenting it as discontinued operations while it seeks a new controlling shareholder; the company provided $107 million of funding to BK China during the quarter. The company declared a quarterly dividend of $0.62 per common share payable July 8, 2025, and had $500 million remaining under its share repurchase authorization, with no repurchases made in the quarter. Management reports that the Carrols Burger King restaurants are expected to be largely refranchised, and the company disclosed pending litigation related to the Burger King franchise no-hire clause and a Delaware shareholder complaint relating to the Carrols acquisition.
May 8, 2025
2024-Q3
Restaurant Brands International Quarterly Report for Q3 Ended Sep 30, 2024
Restaurant Brands International Inc. reported third-quarter 2024 total revenues of $2.29 billion, up from $1.84 billion a year earlier, driven largely by the May 16, 2024 acquisition of Carrols Restaurant Group, which contributed $705 million of revenue from acquisition date through September 30, 2024. Income from operations was $577 million versus $582 million, and net income was $357 million versus $364 million. Nine-month net income rose to $1.08 billion from $992 million, helped by a $79 million step acquisition gain on Carrols, while diluted earnings per share were $2.39 versus $2.16. Adjusted Operating Income, a non-GAAP measure, was $652 million for the quarter versus $609 million, with Tim Hortons segment income up to $284 million from $269 million. Total debt, net, rose to $13.66 billion at September 30, 2024 from $12.92 billion at December 31, 2023, reflecting $750 million of incremental term loan borrowings, a $1.2 billion 6.125% first lien senior notes issuance due 2029, and a $500 million 5.625% first lien senior notes issuance due 2029 used to redeem the 5.75% notes due 2025. Cash and cash equivalents were $1.18 billion, and borrowing availability under the Revolving Credit Facility was $1.25 billion. Net cash provided by operating activities was $1.02 billion for the nine months, compared with $920 million a year earlier, while cash used for investing activities rose to $616 million, including $508 million for the Carrols purchase, net of cash acquired. System-wide sales grew 3.2% on a consolidated basis for the quarter, with comparable sales up 0.3%. The company reported that approximately 95% of system-wide restaurants are franchised, and it had 31,525 restaurants as of September 30, 2024. Management also disclosed a $0.58 per share quarterly dividend declared for payment on January 3, 2025, and noted that the company faces a lawsuit filed October 7, 2024 in Delaware alleging breaches of fiduciary duty related to the Carrols transaction.
Nov 5, 2024
2024-Q2
Restaurant Brands International Quarterly Report for Q2 Ended Jun 30, 2024
Restaurant Brands International Inc. (QSR) reported second-quarter 2024 total revenues of $2,080 million, up from $1,775 million in the prior-year quarter, and net income of $399 million versus $351 million. Income from operations rose to $663 million from $554 million, though results were helped by a $79 million step acquisition gain tied to the Carrols Acquisition, recorded in (Income) loss from equity method investments. Basic and diluted EPS were $0.89 and $0.88 for the quarter, compared with $0.77 and $0.77 a year earlier. Adjusted Operating Income, the company's non-GAAP segment measure, was $632 million versus $577 million. The quarter was shaped by the May 16, 2024 acquisition of Carrols Restaurant Group for $543 million in cash, with about $431 million of assumed debt fully extinguished by June 30, 2024. The company also acquired Popeyes China on June 28, 2024, and created a new Restaurant Holdings segment. Company restaurant sales rose to $347 million from $68 million, largely from Carrols. Total debt, net, increased to $13,672 million from $12,921 million, and the company recorded a $32 million loss on early extinguishment of debt tied to credit facility amendments and a 6.125% First Lien Senior Notes offering of $1,200 million. At June 30, 2024, cash and cash equivalents were $942 million and revolver availability was $1,247 million. Operating cash flow was $482 million for the six months, versus $487 million a year earlier, while investing outflows rose to $559 million largely due to the Carrols purchase. The company stated that cash flow from operations and revolver availability should be sufficient to fund obligations over the next twelve months. Management also declared a $0.58 per share dividend payable October 4, 2024, and $500 million remained under the share repurchase authorization, with no repurchases made in the first half of 2024.
Aug 8, 2024
2024-Q1
Restaurant Brands International Quarterly Report for Q1 Ended Mar 31, 2024
Restaurant Brands International Inc. (QSR) reported first-quarter 2024 results with total revenues of $1,739 million, up from $1,590 million in the first quarter of 2023, and net income of $328 million versus $277 million a year earlier. Net income attributable to common shareholders was $230 million, or $0.72 per diluted share, compared with $0.61 per diluted share in the prior-year period. Income from operations rose to $544 million from $447 million, and Adjusted Operating Income increased to $540 million from $505 million, with segment income higher in every segment. Consolidated system-wide sales grew 8.1% and comparable sales rose 4.6%, though both decelerated from 14.7% and 10.3% in the prior-year quarter. Cash flow from operations was $148 million, compared with $95 million a year earlier, and cash and cash equivalents ended the quarter at $1,049 million. Total debt, net was $12,907 million, and the company had $1,248 million of borrowing availability under its Revolving Credit Facility. Management cited commodity, labor and energy cost increases, rising interest rates, and a softer consumer environment as pressures on the business. The company did not repurchase shares in the quarter and had $500 million remaining under its authorization. The pending acquisition of Carrols Restaurant Group, announced January 16, 2024 at $9.55 per share in cash (an aggregate total enterprise value of approximately $1.0 billion), is expected to close in the second quarter of 2024 and will be funded with about $230 million of cash on hand and an additional $750 million of Term Loan B loans. A shareholder complaint filed on April 23, 2024 challenges the transaction, and the company intends to defend it vigorously.
Apr 30, 2024
2023-Q3
Restaurant Brands International Quarterly Report for Q3 Ended Sep 30, 2023
Restaurant Brands International Inc. reported third-quarter 2023 net income of $364 million, down from $530 million a year earlier, and nine-month net income of $992 million versus $1,146 million. The decline was driven primarily by a $102 million income tax benefit in the prior-year quarter versus a $59 million expense this year, a $16 million loss on early extinguishment of debt tied to the September 2023 credit agreement amendment, and higher share-based compensation. Total revenues rose to $1,837 million for the quarter from $1,726 million, and Adjusted EBITDA increased to $698 million from $642 million, with segment income growing in all four brands: Tim Hortons, Burger King, Popeyes and Firehouse Subs. System-wide sales were $11,223 million for the quarter, up 10.9% on a consolidated basis, with comparable sales of 7.0%. Burger King's segment income rose to $298 million from $262 million, and Popeyes' rose to $75 million from $62 million. Cash and cash equivalents were $1,310 million at September 30, 2023, with $1,248 million of revolver availability. Operating cash flow for the nine months was $920 million, compared with $1,067 million a year earlier, reflecting higher interest payments and working capital use. In September 2023 the company amended its credit facilities, raising the revolver to $1,250 million, the Term Loan A to $1,275 million and the Term Loan B to $5,175 million, and extending maturities to 2028 and 2030. The board approved a new $1,000 million share repurchase authorization through September 30, 2025, and the company repurchased $142 million of shares in the quarter. Subsequent to quarter end, it repurchased $358 million more through October 31, 2023 and declared a quarterly dividend of $0.55 per share.
Nov 3, 2023
2023-Q2
Restaurant Brands International Quarterly Report for Q2 Ended Jun 30, 2023
Restaurant Brands International Inc. reported second-quarter 2023 total revenues of $1.775 billion, up from $1.639 billion a year earlier, and net income of $351 million versus $346 million. Income from operations was $554 million compared with $541 million, and Adjusted EBITDA rose to $665 million from $618 million. Consolidated system-wide sales were $10.946 billion for the quarter, and consolidated comparable sales grew 9.6%. Six-month net income was $628 million, and diluted EPS was $1.37 versus $1.35 a year earlier. Operating cash flow fell to $487 million from $669 million for the six months, driven by higher interest and tax payments and greater working capital use. The company operates 30,125 restaurants across the Tim Hortons, Burger King, Popeyes and Firehouse Subs brands, with approximately 100% of system-wide restaurants franchised. Interest expense, net rose to $145 million in the quarter from $129 million, reflecting a weighted average interest rate on long-term debt of 4.9% versus 4.2%. Total debt, net was $12.901 billion at June 30, 2023, and cash and cash equivalents were $1.213 billion, with $998 million of borrowing availability under the Revolving Credit Facility. Management stated that cash flow from operations and revolver availability should be sufficient to meet obligations over the next twelve months. The filing also notes that the normal course issuer bid and share repurchase authorization were not renewed and will expire in August 2023, with $123 million remaining under the authorization at June 30, 2023. The board declared a quarterly dividend of $0.55 per common share payable October 4, 2023. A class action antitrust suit tied to Burger King franchise agreements was revived by an appellate court in August 2022 and remains pending, with the company unable to predict its outcome.
Aug 8, 2023
2023-Q1
Restaurant Brands International Quarterly Report for Q1 Ended Mar 31, 2023
Restaurant Brands International Inc. reported first-quarter 2023 total revenues of $1,590 million, up from $1,451 million in the prior-year quarter, and net income of $277 million versus $270 million. Net income attributable to common shareholders was $189 million, or $0.61 per diluted share, compared with $0.59 a year earlier. Income from operations was roughly flat at $447 million versus $450 million, as higher general and administrative expenses (including $19 million of FHS Transaction costs and a $45 million share-based compensation charge) offset gains in segment income. Adjusted EBITDA rose to $588 million from $530 million, with increases in all four segments: Tim Hortons $251 million, Burger King $256 million, Popeyes $66 million and Firehouse Subs $15 million. System-wide sales grew 14.7% on a consolidated basis, with comparable sales up 10.3%, driven by Tim Hortons (comparable sales up 13.8%) and Burger King (up 10.8%). Net restaurant count reached 29,956 at March 31, 2023, and the company reported a weighted average interest rate on long-term debt of 4.9%, up from 4.0%, which increased interest expense, net to $142 million from $127 million. Cash provided by operating activities fell to $95 million from $234 million, reflecting higher interest and tax payments and working capital outflows. Cash and cash equivalents were $1,033 million at quarter-end, with $998 million of borrowing availability under the Revolving Credit Facility. The company declared a quarterly dividend of $0.55 per common share payable July 6, 2023, and did not repurchase any common shares during the quarter, with $123 million remaining under its authorization. Management expects additional Corporate restructuring and tax advisory fees during the remainder of 2023 but no further FHS Transaction costs. The effective tax rate fell to 9.1% from 16.6%.
May 2, 2023
2022-Q3
Restaurant Brands International Quarterly Report for Q3 Ended Sep 30, 2022
Restaurant Brands International Inc. reported third-quarter 2022 results with total revenues of $1,726 million, up from $1,495 million a year earlier, and net income of $530 million compared with $329 million. The increase in net income was primarily due to an income tax benefit of $102 million versus an income tax expense of $65 million in the prior-year quarter. Net income attributable to common shareholders was $360 million, or $1.17 per diluted share, compared with $0.70 per diluted share in the prior year. Income from operations rose to $561 million from $533 million, and Adjusted EBITDA was $642 million versus $607 million. Management attributed the period's results partly to a net decrease in tax reserves of $171 million, which lowered the effective tax rate to (23.8)% for the quarter. System-wide sales growth was 14.0% for the consolidated business in the quarter, with comparable sales of 9.1%. Tim Hortons, Burger King, and Popeyes all posted higher system-wide sales, and Firehouse Subs was added following the December 2021 acquisition. Cash and cash equivalents were $946 million at September 30, 2022, and total debt, net was $12,939 million. Net cash provided by operating activities for the nine months was $1,067 million, down from $1,255 million. Management noted that interest rates are expected to continue rising through 2023, and that the company is highly leveraged, with liquidity requirements driven primarily by debt service. The filing also discloses ongoing litigation, including a Burger King antitrust class action that the federal appellate court reversed and remanded in August 2022, and a securities lawsuit in New York state court where the company's motion to dismiss was denied and an appeal is pending. The company's board declared a quarterly dividend of $0.54 per common share payable January 4, 2023, and $123 million remained under the $1,000 million share repurchase authorization.
Nov 3, 2022
2022-Q2
Restaurant Brands International Quarterly Report for Q2 Ended Jun 30, 2022
Restaurant Brands International Inc. (QSR) reported second-quarter 2022 results with total revenues of $1,639 million, up from $1,438 million in the prior-year quarter, and net income of $346 million versus $391 million. Net income attributable to common shareholders was $236 million, or $0.76 diluted EPS, compared with $0.84 a year earlier. Adjusted EBITDA rose to $618 million from $577 million, driven by higher segment income at Tim Hortons, Burger King and Popeyes and the inclusion of Firehouse Subs, which the company acquired on December 15, 2021. Consolidated system-wide sales growth was 14.2% in the quarter, and consolidated comparable sales were 9.0%. Consolidated restaurant count reached 29,747 as of June 30, 2022. The quarter's bottom line was pressured by a higher income tax expense of $66 million, against a benefit of $29 million in the prior-year quarter, which included $89 million of reserve releases. General and administrative expenses rose to $146 million from $108 million, including higher share-based compensation and Firehouse Subs transaction costs. The filing notes that foreign currency translation had an unfavorable effect, and that cost increases in commodities, labor and energy, partly linked to COVID-19 and the war in Ukraine, could pressure results if prices cannot be adjusted to offset them. Capital allocation and leverage were key themes. The company repurchased $326 million of common shares in the first six months of 2022, leaving $123 million under its $1,000 million authorization, and cash and cash equivalents were $838 million at June 30, 2022. Total debt, net was $12,959 million, and the company stated it was in compliance with its financial debt covenants. It declared a $0.54 per share dividend payable October 5, 2022. The filing also discloses litigation, including a Burger King antitrust class action and a securities lawsuit, and describes the company as highly leveraged.
Aug 4, 2022
2022-Q1
Restaurant Brands International Quarterly Report for Q1 Ended Mar 31, 2022
Restaurant Brands International Inc. reported first-quarter 2022 total revenues of $1,451 million, up from $1,260 million a year earlier, with net income of $270 million compared to $271 million in the prior-year quarter. Net income attributable to common shareholders was $183 million, or $0.59 per diluted share, versus $0.58 in the prior-year period. Consolidated system-wide sales grew 13.7% to $9,029 million, and comparable sales rose 8.4% at Tim Hortons and 10.3% at Burger King, while Popeyes comparable sales declined 3.0%. Adjusted EBITDA increased 10.4% to $530 million, driven by higher segment income at Tim Hortons and Burger King and the inclusion of Firehouse Subs, which was acquired on December 15, 2021. Cash and cash equivalents declined to $895 million at March 31, 2022, from $1,087 million at December 31, 2021, reflecting $161 million of share repurchases and $241 million of dividend and distribution payments in the quarter. Net cash provided by operating activities was $234 million, compared to $266 million a year earlier, due mainly to higher working capital usage. Total debt, net was $12,974 million, and the company had $998 million of borrowing availability under its Revolving Credit Facility. The filing notes ongoing litigation, including a Burger King antitrust class action, Tim Hortons app geolocation class actions, and new PFAS packaging class actions filed in April 2022, and states that the company is disposing of its 15% minority stake in its Burger King Russia joint venture and has suspended corporate support for the Russian market. Management stated that the company expects cash flow from operations and Revolving Credit Facility availability to fund obligations, debt service, and capital spending over the next twelve months. A quarterly dividend of $0.54 per common share was declared, payable July 6, 2022.
May 3, 2022
2021-Q3
Restaurant Brands International Quarterly Report for Q3 Ended Sep 30, 2021
Restaurant Brands International Inc. reported third-quarter 2021 total revenues of $1,495 million, up from $1,337 million a year earlier, and net income of $329 million versus $223 million. Nine-month revenues were $4,193 million versus $3,610 million, and nine-month net income was $991 million versus $611 million. Net income attributable to common shareholders for the nine months was $659 million, with diluted EPS of $2.12 compared with $1.30. Adjusted EBITDA rose to $607 million for the quarter from $561 million and to $1,664 million for the nine months from $1,363 million, led by Burger King and Tim Hortons segment income. The company describes itself as one of the world's largest quick service restaurant companies, with 27,667 restaurants as of September 30, 2021 and approximately 100% of system-wide restaurants franchised. Liquidity remained substantial, with cash and cash equivalents of $1,773 million, working capital of $832 million, and $998 million of revolving credit facility availability. Operating cash flow was $1,255 million for the nine months, versus $608 million a year earlier. During the quarter the company issued $800 million of additional 3.875% first lien senior secured notes due 2028 and used the proceeds to redeem the remaining $775 million of 2017 4.25% Senior Notes. The company repurchased 2,843,562 common shares for $182 million in the third quarter under a $1,000 million authorization, leaving $818 million available. Total long-term debt, net, was $12,379 million, and the company paid a $0.53 per share dividend on October 5, 2021, and declared another payable January 5, 2022. The filing also discloses ongoing litigation, including Sherman Act class actions tied to franchise no-solicitation clauses, privacy class actions related to mobile app geolocation data, and a securities class action with a motion to dismiss scheduled for December 2021. Management states it believes these claims are without merit but cannot predict outcomes or estimate possible losses. The company also reported that COVID-19 continued to affect operations, with on average 97% of restaurants open worldwide in the quarter.
Oct 25, 2021
2021-Q2
Restaurant Brands International Quarterly Report for Q2 Ended Jun 30, 2021
Restaurant Brands International Inc. (QSR) reported second-quarter 2021 results with total revenues of $1,438 million for the three months ended June 30, 2021, up from $1,048 million a year earlier, and net income of $391 million versus $164 million. For the six months, total revenues were $2,698 million compared with $2,273 million, and net income was $662 million versus $388 million. Net income attributable to common shareholders was $259 million for the quarter, and diluted EPS was $0.84 versus $0.35. Segment income (Adjusted EBITDA) rose to $577 million for the quarter from $358 million, with Tim Hortons at $253 million, Burger King at $266 million and Popeyes at $58 million. Management attributed the gains to a recovery from the prior-year COVID-19 disruption, with consolidated system-wide sales growth of 31.9% in the quarter and comparable sales of 27.6% at Tim Hortons and 18.2% at Burger King. Balance sheet and liquidity were stable. Cash and cash equivalents were $1,762 million at June 30, 2021, and total long-term debt, net of current portion, was $12,375 million. Operating cash flow for the six months was $745 million, versus $196 million a year earlier. In July 2021 the company issued $800 million of 3.875% first lien senior secured notes and used the proceeds to redeem the remaining $775 million of 4.25% Senior Notes. Subsequent to quarter end, the board declared a $0.53 per share dividend and approved a $1,000 million share repurchase authorization running to August 10, 2023. The filing also discloses ongoing litigation, including Sherman Act class actions tied to franchise no-hire clauses and privacy-related class actions over mobile app geolocation data. Management states it believes the claims lack merit but cannot predict the outcomes.
Jul 30, 2021
2021-Q1
Restaurant Brands International Quarterly Report for Q1 Ended Mar 31, 2021
Restaurant Brands International Inc. (QSR) reported first-quarter 2021 total revenues of $1,260 million, up from $1,225 million a year earlier, and net income of $271 million versus $224 million. Net income attributable to common shareholders was $179 million, or $0.58 diluted earnings per share, compared with $0.48 in the prior-year period. Adjusted EBITDA rose to $480 million from $444 million, with increases in segment income at Tim Hortons ($207 million vs. $189 million), Burger King ($217 million vs. $200 million) and Popeyes ($56 million vs. $55 million). Consolidated system-wide sales growth was 1.4%, with Tim Hortons at (4.9)%, Burger King at 1.8% and Popeyes at 7.0%. Other operating income, driven by $43 million of foreign exchange gains, contributed to the increase in net income. Cash and cash equivalents were $1,563 million at March 31, 2021, with working capital of $739 million and $998 million of borrowing availability under the Revolving Credit Facility. Cash provided by operating activities was $266 million, compared with $136 million a year earlier, and the company paid $239 million in dividends and partnership distributions. Total long-term debt, net, was $12,386 million, and the company stated it was in compliance with its financial debt covenants. The company also declared a quarterly dividend of $0.53 per common share payable July 7, 2021. The company's 10-Q notes that COVID-19 continued to affect restaurant operations, with 95% of restaurants open worldwide at the end of March 2021. Litigation remains pending in several matters, including a Sherman Act class action relating to employee no-solicitation clauses and a series of class actions in Canada related to mobile app geolocation data, and the company states it intends to vigorously defend these cases.
Apr 30, 2021
2020-Q3
Restaurant Brands International Quarterly Report for Q3 Ended Sep 30, 2020
Restaurant Brands International Inc. reported third-quarter 2020 total revenues of $1,337 million, down from $1,458 million in the prior-year quarter, and net income of $223 million versus $351 million. Net income attributable to common shareholders was $145 million, or $0.47 diluted EPS, compared with $0.75 a year earlier. For the nine months, total revenues were $3,610 million versus $4,124 million, and net income was $611 million versus $854 million. Management attributes the declines to COVID-19, which drove system-wide sales down 5.4% in the quarter and 8.9% for the nine months, and to lower Tim Hortons segment income. Adjusted EBITDA was $561 million for the quarter, down from $602 million, and segment income at Tim Hortons fell to $258 million from $301 million, while Popeyes segment income rose to $58 million from $47 million. On the balance sheet, cash and cash equivalents were $1,919 million at September 30, 2020, up from $1,533 million at year-end 2019, and long-term debt, net of current portion, was $12,300 million. The company said it had $998 million of borrowing availability under its revolving credit facility and that it was in compliance with its debt covenants. The company also described a series of post-quarter refinancing transactions, including $1,400 million of 4.00% second lien notes issued in October 2020 to redeem $1,350 million of 5.00% senior notes, a further $1,500 million of 4.00% second lien notes to redeem the remaining $1,450 million of those notes, and $750 million of 3.50% first lien notes to redeem $725 million of 4.25% notes. A loss on early extinguishment of debt is expected in the fourth quarter. The filing also discloses a pending securities class action filed October 26, 2020, relating to a 2019 offering by an affiliate of 3G Capital, along with several privacy and competition class actions in Canada and the United States tied to mobile application geolocation data. Management said COVID-19 effects are expected to continue into the fourth quarter of 2020, and that the company believes its cash flow from operations and revolving credit availability will be sufficient for the next twelve months.
Oct 28, 2020
2020-Q2
Restaurant Brands International Quarterly Report for Q2 Ended Jun 30, 2020
Restaurant Brands International Inc. reported a sharp decline in the second quarter of 2020 as COVID-19 closed many restaurants or limited operations. Total revenues fell to $1,048 million for the three months ended June 30, 2020 from $1,400 million a year earlier, and net income attributable to common shareholders dropped to $106 million from $142 million. Income from operations was $243 million versus $491 million, and diluted EPS was $0.35 compared with $0.55. Consolidated system-wide sales declined 20.9% for the quarter, with Tim Hortons comparable sales down 29.3% and Burger King comparable sales down 13.4%, while Popeyes comparable sales rose 24.8%. Management states it cannot currently estimate the duration or financial impact of the pandemic and expects negative effects to continue into the third quarter of 2020. Liquidity was supported by financing actions. The company drew $995 million on its Revolving Credit Facility in March 2020 and repaid it in June 2020, issued $500 million of 5.75% first lien senior secured notes due 2025, and drew the remaining C$125 million on its TH Facility. Cash and cash equivalents were $1,540 million at June 30, 2020, with $998 million of revolver borrowing availability and working capital of $943 million. Total debt, net was $12,388 million. A Fifth Amendment to the credit agreement allows a $1,000 million minimum liquidity covenant in place of the net first lien senior secured leverage ratio through September 30, 2021. Management states that operating cash flow, combined with revolver availability, should cover obligations over the next twelve months. The company also extended support to franchisees through cash flow advances, loans to Burger King U.S. franchisees, rent relief programs converting certain rents to 100% variable, and deferred franchisee capital commitments. Bad debt expense rose to $24 million in the quarter from $4 million. The filing also discloses two new class action lawsuits filed in late June and early July 2020 relating to geolocation data collected through the Tim Hortons mobile application, and it notes a $0.52 per share dividend declared for payment on October 2, 2020.
Aug 6, 2020
2020-Q1
Restaurant Brands International Quarterly Report for Q1 Ended Mar 31, 2020
Restaurant Brands International Inc. reported first-quarter 2020 net income of $224 million, down from $246 million a year earlier, with net income attributable to common shareholders of $144 million versus $135 million in the prior-year quarter (the increase reflects a lower noncontrolling interest share of $80 million versus $111 million). Total revenues fell to $1,225 million from $1,266 million, and Adjusted EBITDA declined to $444 million from $500 million, driven by lower segment income at Tim Hortons (TH: $189 million vs. $237 million) and Burger King (BK: $200 million vs. $222 million), partly offset by Popeyes (PLK: $55 million vs. $41 million). Consolidated system-wide sales growth was 0.0%, with comparable sales of (10.3)% at TH, (3.7)% at BK and 26.2% at PLK. The filing states the company expects COVID-19 to have a more significant impact on results for the three months ending June 30, 2020 than in the first quarter, and that it cannot currently estimate the duration or future negative financial impact of the pandemic. Liquidity and leverage changed materially during the quarter. Cash and cash equivalents rose to $2,498 million from $1,533 million at year-end 2019, primarily after the company drew $995 million on its Revolving Credit Facility, which had only $3 million of borrowing availability remaining at March 31, 2020, and drew the remaining C$125 million under the TH Facility. Long-term debt, net of current portion, increased to $12,822 million from $11,759 million. Subsequent to quarter-end, on April 2, 2020, the Borrowers entered into a Fifth Amendment giving the option to comply with a $1,000 million minimum liquidity covenant in place of the 6.50:1.00 net first lien senior secured leverage ratio for the period after June 30, 2020 and before September 30, 2021, and on April 7, 2020 they issued $500 million of 5.75% first lien senior secured notes due 2025. The board declared a cash dividend of $0.52 per common share payable June 30, 2020. The company reported that franchisees face adverse liquidity effects from COVID-19, and RBI has introduced rent relief programs (converting rent to 100% variable for certain Tim Hortons and Burger King locations), extended loans and cash advances to franchisees, and deferred franchisee capital investment commitments. Management stated that its cash flow from operations is expected to provide sufficient liquidity over the next twelve months.
May 1, 2020
2019-Q3
Restaurant Brands International Quarterly Report for Q3 Ended Sep 30, 2019
Restaurant Brands International Inc. reported third-quarter 2019 total revenues of $1.458 billion, up from $1.375 billion a year earlier, and net income of $351 million versus $250 million. Net income attributable to common shareholders rose to $201 million from $134 million, and diluted EPS was $0.75 compared with $0.53. Income from operations increased to $571 million from $478 million, with segment income (Adjusted EBITDA) of $602 million versus $571 million. Burger King and Popeyes segment income grew, while Tim Hortons segment income was roughly flat at $301 million. Consolidated system-wide sales growth was 8.9% for the quarter, with Popeyes at 15.6% and Burger King at 10.7%, while Tim Hortons was (0.1)%. At September 30, 2019, cash and cash equivalents were $1.732 billion, versus $913 million at December 31, 2018, and total debt, net was $12.317 billion. During the quarter the company issued $750 million of 3.875% first lien senior notes due 2028. Subsequent to quarter end, on October 7, 2019, it funded a $750 million Term Loan A, used proceeds together with the notes to redeem $1.250 billion of 4.625% senior notes due 2022, and increased its revolving credit facility commitments to $1.000 billion. The company also prepaid $235 million of its Term Loan B during the quarter, recording a $4 million loss on early extinguishment of debt. The filing shows a $1.147 billion operating lease asset and a $1.055 billion non-current operating lease liability following the January 1, 2019 adoption of ASC 842. Nine-month operating cash flow was $911 million, up from $673 million, and the company declared a $0.50 per share quarterly dividend payable January 3, 2020. The company operates 26,311 restaurants as of September 30, 2019, approximately 100% of which are franchised.
Oct 28, 2019
2019-Q2
Restaurant Brands International Quarterly Report for Q2 Ended Jun 30, 2019
Restaurant Brands International Inc. reported total revenues of $1,400 million for the three months ended June 30, 2019, up from $1,343 million a year earlier, and $2,666 million for the six months, compared with $2,597 million in the prior-year period. Net income attributable to common shareholders was $142 million for the quarter versus $167 million in 2018, and diluted earnings per share were $0.55 versus $0.66. Net income for the quarter fell to $257 million from $314 million, primarily due to a $39 million increase in income tax expense and a $33 million unfavorable change in other operating expenses (income), net, partially offset by higher segment income across all three brands. Segment income (Adjusted EBITDA) rose to $580 million in the quarter from $562 million, with Burger King segment income up to $252 million from $236 million and Popeyes at $41 million from $40 million, while Tim Hortons was essentially flat at $287 million versus $286 million. For the six months, Tim Hortons segment income declined to $524 million from $531 million. The effective tax rate for the quarter was 27.4% versus 15.7%, reflected in part by a $37 million increase in the provision for unrecognized tax benefits related to a prior restructuring transaction. Consolidated comparable sales were not separately stated; brand comparable sales were 0.5% for Tim Hortons, 3.6% for Burger King and 3.0% for Popeyes in the quarter, and system-wide sales growth was 7.9% consolidated. As of June 30, 2019, the company had cash and cash equivalents of $1,028 million, working capital of $271 million, and $498 million of borrowing availability under its Revolving Credit Facility. Long-term debt, net of current portion, was $11,737 million, and operating cash flow for the six months was $475 million compared with $287 million a year earlier. The company stated it had no material changes to market risk disclosures and that its disclosure controls were effective. The filing also discloses a new class action complaint filed in July 2019 against TDL in British Columbia alleging violations of the Canadian Competition Act, which management believes is without merit.
Aug 2, 2019
2019-Q1
Restaurant Brands International Quarterly Report for Q1 Ended Mar 31, 2019
Restaurant Brands International Inc. reported first-quarter 2019 total revenues of $1.266 billion, up from $1.254 billion in the prior-year quarter, while net income fell to $246 million from $279 million. Net income attributable to common shareholders was $135 million, or $0.53 per basic and diluted share, compared with $148 million, or $0.60 basic and $0.59 diluted, a year earlier. The filing attributes the decline mainly to a $54 million increase in income tax expense, partly offset by a $30 million favorable change in other operating expenses (income), net, and an $8 million decrease in interest expense. Adjusted EBITDA was $500 million versus $498 million, with BK and PLK segment income rising and TH segment income falling $8 million to $237 million. The company adopted the new lease accounting standard (ASC 842) on January 1, 2019, which added $1.148 billion of operating lease assets and $1.046 billion of non-current operating lease liabilities to the balance sheet and shifted franchise and property revenues and expenses to a gross presentation. Cash and cash equivalents were $902 million at March 31, 2019, with $498 million of revolver availability and working capital of $134 million. Operating cash flow was $154 million, compared with cash used of $111 million in the prior year, reflecting lower income tax payments and reduced working capital outflows. Total debt, net was $11.815 billion, and the company declared a $0.50 per share quarterly dividend payable July 3, 2019. System-wide sales growth was 6.4% consolidated, led by BK at 8.2%, while TH comparable sales declined 0.6% and BK comparable sales rose 2.2%. The company operated 25,809 restaurants at quarter-end, nearly all franchised, and the restaurant count grew 5.1% on a net basis over the trailing twelve months.
Apr 29, 2019
2018-Q3
Restaurant Brands International Quarterly Report for Q3 Ended Sep 30, 2018
Restaurant Brands International Inc. reported third-quarter 2018 results with total revenues of $1,375.3 million, up from $1,208.6 million a year earlier, and net income of $249.8 million versus $246.8 million. Under the new ASC 606 revenue standard adopted January 1, 2018, franchise and property revenues rose to $766.2 million from $577.0 million, while Selling, general and administrative expenses increased to $298.3 million from $100.1 million, largely due to advertising fund expenses now being presented on a gross basis. Management also states that Adjusted EBITDA was $571.4 million for the quarter, compared with $565.1 million a year earlier, and that segment income rose in PLK and TH but fell in BK. For the nine months, net income was $842.8 million versus $656.9 million, and cash provided by operating activities was $673.1 million compared with $844.1 million, which the company attributes to higher income tax payments, higher interest payments and increased working capital use. The company had cash and cash equivalents of $1,143.5 million at September 30, 2018, and long-term debt of $11,766.8 million net of current portion. Restaurant count stood at 25,066 across the Tim Hortons, Burger King and Popeyes brands, with comparable sales of 0.6% for TH, 1.0% for BK and 0.5% for PLK in the quarter. The filing also discloses a declared quarterly dividend of $0.45 per common share payable January 4, 2019, a normal course issuer bid authorizing repurchase of up to 24,087,172 common shares through August 7, 2019 with no repurchases made as of the report date, and two new class action complaints in the Southern District of Florida alleging Sherman Act violations related to Burger King franchise agreement employee no-solicitation clauses. Management states it believes the claims are without merit but cannot predict outcomes.
Oct 24, 2018
2018-Q2
Restaurant Brands International Quarterly Report for Q2 Ended Jun 30, 2018
Restaurant Brands International Inc. reported second-quarter 2018 total revenues of $1.34 billion, up from $1.13 billion a year earlier, and net income of $314.2 million versus $243.5 million. The company attributes the revenue increase largely to the adoption of ASC 606 on January 1, 2018, which moved advertising fund contributions and expenses onto a gross basis and changed the timing of franchise fee and gift card breakage recognition. Income from operations rose to $502.7 million from $414.4 million, and Adjusted EBITDA was $562.1 million compared with $531.1 million. Segment income increased at Burger King ($236.4 million) and Popeyes ($40.2 million), while Tim Hortons segment income rose to $285.5 million from $281.1 million. The balance sheet shows cash and cash equivalents of $987.5 million, total assets of $20.61 billion, and term debt, net of current portion, of $11.78 billion. Operating cash flow for the six months ended June 30, 2018 was $287.4 million, down from $490.0 million, which the company attributes mainly to higher income tax payments tied to the December 2017 redemption of preferred shares. The company reported working capital of $312.5 million and borrowing availability of $495.5 million under its Revolving Credit Facility, and stated that it believes operating cash flow and that facility will cover obligations over the next twelve months. The filing also discloses a complaint filed July 24, 2018 by Great White North Franchisee Association - USA, Inc. against Tim Hortons USA, Inc. and the Partnership, in addition to two earlier Ontario class claims by Tim Hortons franchisees. The company describes these claims as without merit and says it cannot predict the outcome. Dividends of $0.45 per common share were paid on July 3, 2018 and another $0.45 is payable October 1, 2018.
Aug 1, 2018
2018-Q1
Restaurant Brands International Quarterly Report for Q1 Ended Mar 31, 2018
Restaurant Brands International Inc. reported first-quarter 2018 total revenues of $1.25 billion, up from $1.00 billion a year earlier, with net income of $278.8 million versus $166.6 million. The increase reflects the inclusion of Popeyes (PLK) following the March 27, 2017 acquisition, which contributed $100.4 million of revenue and $38.5 million of segment income, and the adoption of ASC 606 on January 1, 2018. Under ASC 606, franchise and property revenues rose to $706.0 million, but the company notes advertising fund contributions are now presented gross, and the filing provides the impact of prior standards: total revenues would have been $1.07 billion under previous standards. Operating results were mixed by brand. Tim Hortons segment income fell to $245.2 million from $256.2 million, with comparable sales of (0.3)%, while Burger King segment income rose to $214.1 million from $187.1 million, with comparable sales of 3.8%. Adjusted EBITDA was $497.8 million versus $443.3 million. Cash used for operating activities was $111.0 million, compared with cash provided of $288.9 million a year earlier, driven largely by income tax payments and working capital changes. Cash and cash equivalents declined to $852.4 million from $1,097.4 million at December 31, 2017. The balance sheet shows total assets of $20.76 billion and term debt, net of current portion, of $11.79 billion. The company declared a quarterly cash dividend of $0.45 per common share on April 24, 2018, payable July 3, 2018. The filing also discloses two pending Ontario class action claims by Tim Hortons franchisees, which the company intends to defend vigorously and for which it cannot predict the outcome.
Apr 24, 2018
2017-Q3
Restaurant Brands International Quarterly Report for Q3 Ended Sep 30, 2017
Restaurant Brands International Inc. reported third-quarter 2017 results with total revenues of $1,208.6 million, up from $1,075.7 million a year earlier, and net income of $246.8 million versus $238.6 million. For the nine months ended September 30, 2017, total revenues were $3,341.9 million and net income was $656.9 million. Results include the Popeyes Louisiana Kitchen segment, acquired March 27, 2017 for total consideration of $1,654.7 million, which contributed $68.0 million of revenue and $36.8 million of segment income in the quarter. Income from operations was $479.3 million for the quarter, and Adjusted EBITDA was $565.1 million, compared with $488.9 million in the prior-year quarter. The balance sheet shows cash and cash equivalents of $3,607.1 million at September 30, 2017, up from $1,460.4 million at December 31, 2016, driven largely by the 2017 4.25% Senior Notes, the Incremental Term Loan No. 2, and the settlement of cross-currency swaps. Long-term debt, net of current portion, rose to $11,303.6 million from $8,410.2 million. The company states it is highly leveraged. Subsequent events include the board's approval to redeem all 68,530,939 Preferred Shares on December 12, 2017, the issuance of an additional $1,500.0 million of 5.00% second lien senior secured notes in October 2017, and the extension of the Revolving Credit Facility maturity to October 13, 2022. The company operated 23,742 restaurants as of September 30, 2017, and states that approximately 100% of system-wide restaurants are franchised. Comparable sales were 0.3% for Tim Hortons and 3.6% for Burger King in the third quarter, while Popeyes comparable sales were (1.8)%. Management also disclosed two Ontario class-action claims filed in June and October 2017 by Tim Hortons franchisees, which it intends to defend vigorously and for which it cannot estimate a range of possible loss.
Oct 26, 2017
2017-Q2
Restaurant Brands International Quarterly Report for Q2 Ended Jun 30, 2017
Restaurant Brands International Inc. reported a quarter in which its Popeyes acquisition, completed March 27, 2017 for total consideration of $1,654.7 million, began contributing results. Total revenues for the three months ended June 30, 2017 were $1,132.7 million, up from $1,040.2 million a year earlier, and net income was $243.5 million versus $247.6 million. Net income attributable to common shareholders was $89.5 million, or $0.37 diluted EPS, compared with $0.38 in the prior-year quarter. Adjusted EBITDA rose to $531.1 million from $479.1 million, and PLK contributed $33.2 million of segment income. Management attributed the decline in net income mainly to a $58.1 million swing in other operating expenses (income), net, higher interest expense, and $8.5 million of PLK transaction costs. The balance sheet changed significantly during the quarter. Cash and cash equivalents rose to $3,435.5 million from $1,460.4 million at December 31, 2016, reflecting a $1,500.0 million 4.25% senior notes issuance in May 2017, a $250.0 million incremental term loan, and proceeds from settling and terminating cross-currency swaps. Term debt, net of current portion, increased to $11,252.9 million from $8,410.2 million. Management stated it expects to use a significant portion of cash to redeem all or part of the $3,297.0 million of redeemable preferred shares held by Berkshire Hathaway's subsidiary, National Indemnity Company, whose 9.0% dividend totaled $67.5 million for the quarter. The filing also discloses a June 19, 2017 class action in Ontario Superior Court of Justice involving Tim Hortons franchisees and the Tim Hortons advertising fund, which management believes is without merit but cannot predict the outcome of or the range of possible loss. Comparable sales growth was (0.8)% for Tim Hortons, 3.9% for Burger King, and (2.7)% for Popeyes in the quarter.
Aug 2, 2017
2017-Q1
Restaurant Brands International Quarterly Report for Q1 Ended Mar 31, 2017
Restaurant Brands International Inc. reported first-quarter 2017 total revenues of $1,000.6 million, up from $918.5 million a year earlier, while net income was $166.6 million versus $168.3 million. The decline in net income was driven primarily by a $20.4 million loss on early extinguishment of debt tied to the February 2017 refinancing of its Term Loan Facility, partially offset by a $9.4 million decrease in income tax expense and higher income from operations. Net income attributable to common shareholders was $50.2 million, or $0.21 per diluted share, compared with $50.0 million, or $0.21 per diluted share, a year earlier. Selling, general and administrative expenses rose to $121.9 million from $73.2 million, including $34.4 million of PLK Transaction costs related to the Popeyes acquisition. The company completed the acquisition of Popeyes Louisiana Kitchen, Inc. on March 27, 2017 for total consideration of $1,654.7 million, funded with about $354.7 million of cash on hand and a $1,300.0 million incremental term loan. The Popeyes purchase price allocation is preliminary, and the resulting goodwill of $1,078.3 million and Popeyes brand intangible of $1,020.0 million are subject to revision. Total debt, net, rose to $9,622.2 million at March 31, 2017 from $8,485.0 million at December 31, 2016, and cash and cash equivalents fell to $923.9 million from $1,460.4 million. Adjusted EBITDA increased 8.7% to $443.3 million, with Tim Hortons segment income up 12.5% and Burger King segment income up 3.9%. Comparable sales growth for Tim Hortons and Burger King combined was (0.1)%, and system-wide restaurant count reached 23,155 at March 31, 2017. The board declared a quarterly dividend of $0.19 per common share on April 26, 2017, payable July 6, 2017, and the preferred share dividend of $67.5 million for the second quarter of 2017.
Apr 26, 2017
2016-Q3
Restaurant Brands International Quarterly Report for Q3 Ended Sep 30, 2016
Restaurant Brands International Inc. reported third-quarter 2016 results in its Form 10-Q filed October 24, 2016. Total revenues rose to $1,075.7 million from $1,019.7 million, and income from operations increased to $420.5 million from $344.0 million. Net income was $238.6 million versus $182.9 million a year earlier. For the nine months, net income was $654.5 million compared with $327.2 million, helped by the non-recurrence of a $40.0 million loss on early extinguishment of debt in the prior year. Net income attributable to common shareholders for the quarter was $86.3 million, or $0.36 diluted EPS, against $0.24 a year earlier. Segment results were strong. Tim Hortons segment income rose to $287.1 million from $244.0 million, and Burger King segment income rose to $201.8 million from $196.7 million. Adjusted EBITDA reached $488.9 million for the quarter, up from $440.7 million. Comparable sales growth was 2.0% for Tim Hortons and 1.7% for Burger King in the quarter. Restaurant count stood at 19,735 at September 30, 2016. Cash and cash equivalents were $1,274.4 million, and the company had $498.5 million of borrowing availability under its Revolving Credit Facility. Total debt, net, was $8,496.7 million. The company declared a quarterly common dividend of $0.17 per share on October 24, 2016, payable January 4, 2017, and a Preferred Share dividend of $67.5 million. The board also approved a share repurchase authorization of up to $300 million over five years, with a normal course issuer bid covering up to 18,085,962 common shares through August 7, 2017.
Oct 24, 2016
2016-Q2
Restaurant Brands International Quarterly Report for Q2 Ended Jun 30, 2016
Restaurant Brands International Inc. reported net income of $247.6 million for the three months ended June 30, 2016, compared to $93.8 million in the prior-year quarter, with total revenues of $1,040.2 million versus $1,042.2 million. Income from operations rose to $424.0 million from $302.1 million, driven mainly by lower other operating expenses, cost of sales and selling, general and administrative expenses, and the prior year's $39.9 million loss on early extinguishment of debt did not recur. Adjusted EBITDA increased to $479.1 million from $427.8 million, with Tim Hortons segment income of $279.0 million and Burger King segment income of $200.1 million. For the six months, net income was $415.9 million and Adjusted EBITDA was $886.9 million. The balance sheet showed cash and cash equivalents of $998.1 million and borrowing availability of $498.5 million under the Revolving Credit Facility, against term debt, net of current portion, of $8,425.2 million. The company stated it is highly leveraged and believes operating cash flow and revolver availability will fund obligations over the next twelve months. Net cash provided by operating activities was $505.3 million for the six months, compared with $508.2 million a year earlier. Comparable sales growth was 2.7% for TH and 0.6% for BK in the quarter, and the company operated 19,564 restaurants as of June 30, 2016. Subsequent to quarter end, the board declared a quarterly common dividend of $0.16 per share and a preferred share dividend of $0.98 per share, and approved a share repurchase authorization of up to $300 million over five years.
Aug 4, 2016
2016-Q1
Restaurant Brands International Quarterly Report for Q1 Ended Mar 31, 2016
Restaurant Brands International Inc. reported first-quarter 2016 total revenues of $918.5 million, down from $933.3 million in the prior-year quarter, while income from operations rose to $330.6 million from $224.1 million and net income increased to $168.3 million from $50.6 million. Net income attributable to common shareholders was $50.0 million, or $0.21 per diluted share, compared with a loss of $0.04 per diluted share a year earlier. Management attributed the operating improvement largely to lower cost of sales, lower selling, general and administrative expenses (which included $28.0 million of TH transaction and restructuring costs in the prior-year quarter), and higher income from equity method investments, partly offset by lower sales and franchise revenues and higher other operating expenses. Adjusted EBITDA, the company's measure of segment income, rose to $407.8 million from $355.1 million. Tim Hortons segment income increased to $227.8 million from $184.4 million, and Burger King segment income increased to $180.0 million from $170.7 million. System-wide sales growth was 7.9% for TH and 10.0% for BK, and comparable sales growth was 5.6% for TH and 4.6% for BK. The company ended the quarter with 19,446 restaurants, $825.9 million of cash and cash equivalents, and $8,504.9 million of total debt, net. Management described the company as highly leveraged and said cash flow from operations plus Revolving Credit Facility availability of $495.8 million should cover obligations over the next twelve months. The filing also discloses a $67.5 million quarterly dividend on the 9.0% Preferred Shares held by Berkshire Hathaway's National Indemnity Company, and a declared common dividend of $0.15 per share for payment on July 6, 2016. Total shareholders' equity rose to $3,338.7 million, and the company disclosed that it expects the pending revenue recognition and lease accounting standards to have a material impact on its financial statements in the case of leases.
Apr 29, 2016
2015-Q3
Restaurant Brands International Quarterly Report for Q3 Ended Sep 30, 2015
Restaurant Brands International Inc. reported its third-quarter 2015 Form 10-Q, covering the period ended September 30, 2015, following its December 12, 2014 acquisition of Burger King Worldwide and Tim Hortons (the Transactions) for total consideration of $11,294.9 million. Total revenues for the three months ended September 30, 2015 were $1,019.7 million versus $278.9 million a year earlier, and net income was $182.9 million versus a net loss of $23.5 million; net income attributable to common shareholders was $49.6 million after $65.8 million attributable to noncontrolling interests and $67.5 million of preferred share dividends. Adjusted EBITDA rose to $440.7 million from $194.4 million, with Tim Hortons contributing segment income of $244.0 million and Burger King $196.7 million. Nine-month results show total revenues of $2,995.2 million and net income of $327.2 million. The balance sheet remained highly leveraged. Total term debt, net of current portion, was $8,471.7 million, and the company had cash and cash equivalents of $975.5 million at September 30, 2015, down from $1,803.2 million at December 31, 2014. During the period, the company issued $1,250.0 million of 4.625% first lien senior secured notes due 2022 and used the proceeds, together with cash on hand, to repay $1,550.0 million of its 2014 Term Loan Facility, and it recorded a $40.0 million loss on early extinguishment of debt for the nine months. Accumulated other comprehensive loss widened to $561.1 million, driven largely by foreign currency translation. Restaurant count reached 19,514 system-wide, with system-wide comparable sales growth of 5.3% at Tim Hortons and 6.2% at Burger King for the quarter. The filing also discloses a $0.12 per common share dividend paid October 2, 2015, and a declared $0.13 per common share dividend payable January 5, 2016, along with $0.98 per Preferred Share dividends totaling $67.5 million per quarter. Management stated that operating cash flow, together with the $496.1 million of revolver availability, should be sufficient to meet obligations over the next twelve months.
Oct 30, 2015
2015-Q2
Restaurant Brands International Quarterly Report for Q2 Ended Jun 30, 2015
Restaurant Brands International Inc. reported a quarter ended June 30, 2015 that reflects the first full quarter of consolidated results after its December 12, 2014 acquisition of Burger King Worldwide and Tim Hortons (the "Transactions"), for total consideration of $11,294.9 million. Total revenues for the three months ended June 30, 2015 were $1,041.4 million, up from $261.2 million a year earlier, and net income was $90.8 million versus $75.1 million. However, net income attributable to common shareholders fell to $9.6 million from $75.1 million, because of $67.5 million in preferred share dividends and $13.7 million attributable to noncontrolling interests. Diluted EPS was $0.05, compared with $0.21 a year earlier. Adjusted EBITDA for the quarter was $427.2 million, versus $182.8 million, with Tim Hortons contributing $234.3 million of segment income and Burger King $192.9 million. The balance sheet shows substantial leverage. Total debt was $8,681.1 million at June 30, 2015, down from $10,042.9 million at December 31, 2014, after the company issued $1,250.0 million of 4.625% first lien senior secured notes due 2022 and repaid $1,550.0 million of its 2014 Term Loan Facility. The company recorded a $39.9 million loss on early extinguishment of debt in the quarter. Cash and cash equivalents fell to $688.9 million from $1,803.2 million, and working capital was $401.7 million. Management states that operating cash flow and the $495.2 million of available revolver capacity should cover obligations over the next twelve months. Foreign currency translation reduced accumulated other comprehensive income, which moved to a loss of $420.3 million. Operationally, system-wide restaurant count reached 19,304 at June 30, 2015, with net restaurant growth of 105 Tim Hortons and 156 Burger King restaurants in the six months. Comparable sales growth was 5.4% for Tim Hortons and 5.7% for Burger King in the six months ended June 30, 2015. The company also announced a quarterly common dividend of $0.12 per share and a preferred share dividend of $67.5 million, both payable October 2, 2015 and October 1, 2015, respectively.
Jul 31, 2015
2015-Q1
Restaurant Brands International Quarterly Report for Q1 Ended Mar 31, 2015
Restaurant Brands International Inc. reported its first quarter 2015 results as a combined company following the December 12, 2014 Transactions, which acquired Burger King Worldwide and Tim Hortons. Total revenues were $932.0 million versus $240.9 million a year earlier, driven mainly by the inclusion of Tim Hortons, with income from operations of $221.8 million and net income of $50.9 million. However, net income attributable to common shareholders was a loss of $8.1 million, or $(0.04) per share, after $68.7 million of preferred share dividends and a $(9.7) million attributable to noncontrolling interests. Segment income (adjusted EBITDA) was $354.6 million, including $183.9 million for TH and $170.7 million for BK. Interest expense rose to $123.9 million from $50.0 million, reflecting debt raised in the Transactions. The balance sheet and cash flow reflect both the acquisition and deleveraging. Cash and cash equivalents fell to $1,021.9 million from $1,803.2 million at year-end 2014, as the company repaid $1,020.6 million of term debt, Tim Hortons Notes and capital leases. Total debt was $8,979.5 million, and working capital was $783.5 million. Net cash from operating activities was $261.7 million. Total assets were $19,375.4 million, and shareholders' equity was $3,516.7 million, including noncontrolling interests of $1,989.0 million. Other comprehensive loss was $758.1 million, mainly from foreign currency translation of $1,091.8 million. The effective tax rate rose to 48.2%, which the filing attributes largely to foreign currency revaluation of monetary assets and liabilities. Management highlighted system-wide sales growth of 8.1% at TH and 9.6% at BK, comparable sales growth of 5.3% at TH and 4.6% at BK, and a restaurant count of 19,111 at quarter end. The company declared a $0.10 per common share dividend payable July 3, 2015, and a $0.98 per Preferred Share dividend on the $3.0 billion Berkshire Hathaway preferred investment, which carries a 9.0% annual rate.
May 5, 2015