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Restaurant Brands International 8-K Report, Financial Results (Apr 30, 2024)

Reports
Earnings & Results·Exhibits & Filings
Filing Date
Filed April 30, 2024
Period End
April 30, 2024
Security
QSR
In the record · 2016–202610-K1110-Q338-K143

QSR filed 11 annual reports (10-K), 33 quarterly reports (10-Q) and 143 current reports (8-K) between 2016 and 2026.

  1. Material agreement8-K · Oct ’17Oct ’17
  2. Leadership change8-K · Dec ’19Dec ’19
  3. Leadership change8-K · Dec ’21Dec ’21
  4. Material agreement8-K · Nov ’25Nov ’25

01—Abstract

Summary

Summary of the 8-K filed April 30, 2024. Cited figures are marked; the original filing is the authoritative source.

Restaurant Brands International Inc. filed this Form 8-K on April 30, 2024 to furnish its press release and supplemental financial and operational information for the three months ended March 31, 2024 (Exhibit 99).

Consolidated system-wide sales rose 8.1% year-over-year to $10.51 billiona, and consolidated comparable sales increased 4.6%, with net restaurant count up 3.9%. Total revenues were $1.74 billion versus $1.59 billion, income from operations was $544 million versus $447 million, and net income was $328 million versus $277 million. Diluted EPS was $0.72 versus $0.61, while Adjusted Diluted EPS was $0.73 versus $0.75.

Adjusted Operating Income was $540 millionb, and the filing states it grew 7.7% organically. Adjusted Net Income declined to $331 million from $340 million, reflecting higher adjusted income tax expense and interest expense as well as unfavorable FX movements. Free cash flow was $122 million, and net debt was $12.32 billion, with Adjusted EBITDA Net Leverage at 4.8x.

Cash and cash equivalents were $1.05 billionc at quarter end. The filing also covers pending and planned activity: the Carrols Restaurant Group acquisition for an aggregate enterprise value of approximately $1.0 billion, expected to close in the second quarter of 2024 and financed with cash on hand and $750 million of additional Term Loan B debt.

Burger King announced an extension of its Royal Reset remodel program with an additional $300 milliond planned from 2025 through 2028. RBI declared a $0.58 per share dividend for the second quarter of 2024 and reaffirmed its long-term outlook for 2024 to 2028.

02—Key points

Key Highlights

  1. System-wide sales grew 8.1% year-over-year to $10.51 billion, with consolidated comparable sales up 4.6%.
  2. Net income rose to $328 million from $277 million, and diluted EPS increased to $0.72 from $0.61.
  3. Adjusted Diluted EPS was $0.73 versus $0.75 in the prior year, and Adjusted Net Income declined to $331 million from $340 million.
  4. Adjusted Operating Income was $540 million, up 7.7% organically per the filing.
  5. Net debt was $12.32 billion, with Adjusted EBITDA Net Leverage at 4.8x and free cash flow of $122 million.
  6. Pending Carrols Restaurant Group acquisition (about $1.0 billion enterprise value) expected to close in Q2 2024, financed with cash and $750 million of Term Loan B debt.
  7. Quarterly dividend of $0.58 per share declared for Q2 2024, payable July 5, 2024.

03—Questions

Frequently Asked Questions

  1. How did RBI's core restaurant sales perform in the first quarter of 2024?

    System-wide sales increased 8.1% year-over-year to $10.51 billion, and consolidated comparable sales rose 4.6%. Tim Hortons Canada comparable sales grew 7.5%, BK International 4.2%, BK US 3.9%, and Popeyes US 6.2%.

  2. Why did Adjusted Net Income and Adjusted Diluted EPS decline despite higher operating income?

    The filing attributes the decline in Adjusted Net Income primarily to higher adjusted income tax expense, higher adjusted interest expense, and unfavorable FX movements, partially offset by segment income growth across all five segments. Adjusted Diluted EPS was $0.73 versus $0.75.

  3. What are the terms and expected timing of the Carrols acquisition?

    RBI agreed on January 16, 2024 to acquire Carrols Restaurant Group in an all-cash transaction with an aggregate total enterprise value of approximately $1.0 billion. Completion is expected in the second quarter of 2024, subject to Carrols shareholder approval and other customary closing conditions, and it is expected to be financed with cash on hand and an additional $750 million of Term Loan B loans.

  4. What is the outlook for Burger King's remodel program?

    On April 30, 2024, Burger King announced an extension of its Long-Term Royal Reset program, with plans to invest an additional $300 million in remodels from 2025 through 2028. Together with the initial Reclaim the Flame investment and remodels of 600 Carrols restaurants, the company expects to reach its goal of an 85% to 90% modern image by 2028.

  5. What guidance and dividend did RBI provide?

    RBI expects 2024 capital expenditures, tenant inducements and incentives of approximately $300 million, adjusted interest expense, net of $555 million to $565 million, and Segment G&A of $665 million to $685 million (excluding Carrols). It declared a $0.58 per share dividend for Q2 2024, payable July 5, 2024 to holders of record on June 21, 2024, and continues to expect long-term 2024 to 2028 targets of 3%+ comparable sales, 5%+ net restaurant growth and 8%+ system-wide sales growth.

04—Continue

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