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Restaurant Brands International 8-K Report, Financial Results (Nov 5, 2024)

Reports
Earnings & Results·Exhibits & Filings
Filing Date
Filed November 5, 2024
Period End
November 5, 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 November 5, 2024. Cited figures are marked; the original filing is the authoritative source.

Restaurant Brands International Inc. reported third-quarter 2024 results for the three months ended September 30, 2024, furnished as Exhibit 99.

Consolidated system-wide sales rose 3.2% year-over-year to $11,433 milliona, while consolidated comparable sales were 0.3%, including 2.7% at TH Canada and 1.8% at INTL. Total revenues were $2,291 million versus $1,837 million, largely reflecting the inclusion of the Restaurant Holdings (RH) segment following the Carrols and PLK China acquisitions. Income from operations was $577 million compared with $582 million, and diluted EPS was $0.79, consistent with the prior year.

Adjusted Operating Income rose to $652 millionb, up 6.1% on an organic basis (excluding FX and RH), and Adjusted Diluted EPS was $0.93, up 4.6% organically. The company stated that five franchisor segments (TH, INTL, BK, PLK and FHS) each delivered year-over-year growth in Adjusted Operating Income, and that consolidated comparable sales improved in October. Management reiterated its expectation of 8%+ organic Adjusted Operating Income growth for 2024.

Net Debt was $12,950 millionc, with Adjusted EBITDA Net Leverage at 4.8x, flat year-over-year, and the company declared a $0.58 per share dividend for the fourth quarter of 2024. Burger King's comparable sales declined 0.7% and system-wide sales fell 1.5%, and PLK's comparable sales declined 4.0%, while FHS comparable sales fell 4.8%.

Net Income attributable to common shareholders was $252 milliond, unchanged from the prior year. The company also issued $500 million of 5.625% First Lien Senior Secured Notes due 2029 and redeemed its 5.750% notes due 2025, leaving no material debt maturities until 2028, and it maintained its 2024 guidance for Adjusted Interest Expense, net and capital expenditures while updating Segment G&A guidance.

02—Key points

Key Highlights

  1. Consolidated system-wide sales grew 3.2% year-over-year to $11,433 million, with comparable sales of 0.3%.
  2. Adjusted Operating Income was $652 million, up 6.1% organically (excluding FX and RH), and all five franchisor segments grew Adjusted Operating Income year-over-year.
  3. Diluted EPS of $0.79 was flat year-over-year; Adjusted Diluted EPS of $0.93 rose 4.6% organically.
  4. Total revenues rose to $2,291 million from $1,837 million, driven mainly by the consolidation of the RH segment from the Carrols and PLK China acquisitions.
  5. Burger King (comparable sales -0.7%), PLK (-4.0%) and FHS (-4.8%) saw comparable sales declines, while INTL (+1.8%) and TH (+2.3%) were positive.
  6. Management reiterated its target of 8%+ organic Adjusted Operating Income growth for 2024 and said consolidated comparable sales improved in October.
  7. The company issued $500 million of 5.625% notes due 2029, redeemed its 5.750% notes due 2025, and reported no material debt maturities until 2028; Adjusted EBITDA Net Leverage was 4.8x.

03—Questions

Frequently Asked Questions

  1. How did Restaurant Brands perform in the third quarter of 2024?

    System-wide sales rose 3.2% to $11,433 million and comparable sales were 0.3%. Income from operations was $577 million versus $582 million a year earlier, and diluted EPS was $0.79, unchanged from the prior year.

  2. What drove the increase in total revenues?

    Total revenues increased to $2,291 million from $1,837 million, primarily because the Restaurant Holdings segment, which includes Carrols Burger King and PLK China restaurants, is now consolidated. On an organic basis, growth was largely due to non-Carrols acquired BK restaurants and the PLK Carrols restaurants, along with system-wide sales growth at INTL and TH.

  3. Which segments drove growth and which declined?

    Adjusted Operating Income grew at all five franchisor segments year-over-year. INTL and TH system-wide sales increased, while BK (-1.5%), PLK (-0.6%) and FHS (-1.3%) system-wide sales declined. Comparable sales were negative at BK, PLK and FHS.

  4. What is the company's financial outlook and capital position?

    Management expects 8%+ organic Adjusted Operating Income growth for 2024. Net Debt was $12,950 million, and Adjusted EBITDA Net Leverage was 4.8x. The company expects Adjusted Interest Expense, net of $565 million to $575 million and Segment G&A (excluding RH) of $640 million to $650 million, and it declared a $0.58 per share dividend for the fourth quarter of 2024.

  5. What was the debt activity during the quarter?

    The company issued $500 million of 5.625% First Lien Senior Secured Notes due 2029 and used the proceeds, with cash on hand, to redeem its 5.750% First Lien Senior Secured Notes due 2025. As a result, it has no material debt maturities until 2028.

04—Continue

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