Restaurant Brands International Inc. (QSR) Bundle
A Brief History of Restaurant Brands International Inc.
Restaurant Brands International Inc. (RBI) has established itself as a significant player in the global fast-food industry. As of 2024, the company operates several well-known brands, including Tim Hortons, Burger King, Popeyes, and more. This chapter outlines the financial and operational milestones that have shaped RBI's trajectory leading up to 2024.
Financial Performance Overview
For the three months ended September 30, 2024, RBI reported a net income of $357 million, slightly down from $364 million in the same period of 2023. The decline was attributed to increased operating expenses and tax liabilities. However, the company saw an increase in net income for the nine months ended September 30, 2024, with a total of $1,084 million, compared to $992 million for the same period in 2023.
| Period | Net Income (in millions) | Change (%) |
|---|---|---|
| Q3 2024 | $357 | -1.9% |
| Year-to-date 2024 | $1,084 | 9.3% |
Segment Performance
RBI's operations are divided into several segments, each contributing to overall revenue. For the three months ended September 30, 2024, the Tim Hortons segment generated revenues of $1,044 million, while the Burger King segment reported $362 million. The Popeyes segment contributed $195 million during the same period.
| Segment | Revenue (in millions) |
|---|---|
| Tim Hortons | $1,044 |
| Burger King | $362 |
| Popeyes | $195 |
Acquisitions and Strategic Growth
In May 2024, RBI completed the acquisition of Carrols Restaurant Group for a total cash purchase price of $543 million. This acquisition is expected to enhance RBI's presence in the fast-food market significantly. The total consideration included the effective settlement of pre-existing balances amounting to $15 million and the fair value of an existing equity interest of $90 million.
Debt and Liquidity
As of September 30, 2024, RBI reported cash and cash equivalents amounting to $1,176 million and had borrowing availability of $1,247 million under its senior secured revolving credit facility. The company projected required debt service for the next twelve months to be approximately $398 million in interest payments and $71 million in principal payments.
Shareholder Returns
RBI maintained a consistent dividend policy, declaring a cash dividend of $0.58 per common share, which was paid on October 4, 2024. The company aims to return value to shareholders while also managing its debt obligations.
| Dividend per Share | Payment Date |
|---|---|
| $0.58 | October 4, 2024 |
Future Outlook
Looking ahead, RBI is committed to expanding its global footprint and enhancing brand loyalty through strategic investments in technology and restaurant upgrades. The company plans to invest an additional $500 million to remodel over 600 Burger King restaurants acquired as part of the Carrols acquisition.
A Who Owns Restaurant Brands International Inc. (QSR)
Current Ownership Structure
As of October 30, 2024, Restaurant Brands International Inc. (QSR) has the following ownership structure:
| Type of Share | Number of Shares | Percentage of Total Shares |
|---|---|---|
| Common Shares | 323,707,500 | 72.4% |
| Class B Exchangeable Limited Partnership Units | 127,048,577 | 27.6% |
Major Shareholders
The major shareholders of Restaurant Brands International Inc. include:
| Shareholder | Type of Ownership | Number of Shares/Units | Percentage Ownership |
|---|---|---|---|
| 3G Capital | Institutional Investor | Approximately 127,048,577 Class B Exchangeable Units | 27.6% |
| Public Investors | Common Shareholders | 323,707,500 Common Shares | 72.4% |
Recent Financial Performance
For the three months ended September 30, 2024, the financial performance of Restaurant Brands International Inc. was as follows:
| Metric | Value (in millions USD) |
|---|---|
| Net Income | $357 |
| Revenue | $2,291 |
| Earnings Per Share (Basic) | $0.79 |
| Earnings Per Share (Diluted) | $0.79 |
| Total Assets | $25,445 |
| Total Liabilities | $18,406 |
Shareholder Equity
As of September 30, 2024, the condensed consolidated statement of shareholders' equity is as follows:
| Component | Value (in millions USD) |
|---|---|
| Common Shares | $2,300 |
| Retained Earnings | $1,794 |
| Accumulated Other Comprehensive Income (Loss) | $(858) |
| Noncontrolling Interest | $1,803 |
Dividends and Distributions
On October 4, 2024, a dividend of $0.58 per common share was paid. The expected dividends for January 3, 2025, are:
| Type | Amount (per share/unit) |
|---|---|
| Common Share Dividend | $0.58 |
| Partnership Exchangeable Unit Distribution | $0.58 |
Market Capitalization
As of the latest available data, the market capitalization of Restaurant Brands International Inc. is:
| Metric | Value (in millions USD) |
|---|---|
| Market Capitalization | $12,000 |
Restaurant Brands International Inc. (QSR) Mission Statement
Company Overview
Restaurant Brands International Inc. (QSR) is one of the world's largest quick-service restaurant companies, with a portfolio that includes well-known brands such as Burger King, Tim Hortons, Popeyes, and Firehouse Subs. As of 2024, the company continues to focus on growth and innovation while enhancing franchisee profitability and customer satisfaction.
Mission Statement
The mission of Restaurant Brands International is to be the world’s most beloved restaurant brand by providing high-quality food at reasonable prices, ensuring a great experience for customers, and creating value for franchisees. The company aims to achieve this through a commitment to operational excellence, innovation, and community engagement.
Financial Performance Metrics
As of September 30, 2024, Restaurant Brands International reported the following financial metrics:
| Metric | Value |
|---|---|
| Total Revenues (Q3 2024) | $2,291 million |
| Net Income (Q3 2024) | $357 million |
| Adjusted Operating Income (Q3 2024) | $652 million |
| Basic Earnings Per Share (Q3 2024) | $0.79 |
| Cash and Cash Equivalents | $1,176 million |
| Total Assets | $25,071 million |
| Total Liabilities | $20,032 million |
| Shareholders' Equity | $5,039 million |
System-Wide Sales and Growth
In terms of system-wide sales growth, the company reported the following figures for the three months ended September 30, 2024:
| Brand | System-Wide Sales (Q3 2024) | Comparable Sales Growth |
|---|---|---|
| Tim Hortons | $1,952 million | 2.8% |
| Burger King | $2,891 million | (1.5)% |
| Popeyes | $1,509 million | (0.6)% |
| Firehouse Subs | $301 million | (1.3)% |
| International | $4,780 million | 8.0% |
| Consolidated | $11,433 million | 3.2% |
Strategic Initiatives and Investment Plans
Restaurant Brands International is committed to enhancing its brands through several strategic initiatives:
- Reclaim the Flame Plan: A $400 million investment to accelerate sales growth at Burger King, including $150 million in advertising and digital investments and $250 million in remodels and relocations.
- Long-Term Royal Reset Program: An additional $300 million investment in remodels from 2025 through 2028.
- Acquisition of Carrols: Completed on May 16, 2024, for a total cash purchase price of $543 million, significantly expanding the company's footprint.
Conclusion
Restaurant Brands International Inc. continues to focus on its mission to deliver quality food and service while driving growth through strategic investments and operational efficiencies. The company’s commitment to franchisee profitability and customer satisfaction remains central to its long-term strategy.
How Restaurant Brands International Inc. (QSR) Works
Company Overview
Restaurant Brands International Inc. (QSR) operates several well-known fast-food chains, including Tim Hortons, Burger King, Popeyes, and Firehouse Subs. As of September 30, 2024, the company reported a consolidated net income of $1,084 million for the nine months ended that date, compared to $992 million for the same period in 2023.
Financial Performance
The company's financial performance shows significant revenue growth across its segments. The following table summarizes key financial metrics for the three and nine months ended September 30, 2024 and 2023:
| Metric | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2023 |
|---|---|---|---|---|
| Total Revenues | $2,291 million | $1,837 million | $6,110 million | $5,202 million |
| Net Income | $357 million | $364 million | $1,084 million | $992 million |
| Basic Earnings per Share | $0.79 | $0.80 | $2.41 | $2.19 |
| Diluted Earnings per Share | $0.79 | $0.79 | $2.39 | $2.16 |
Segment Performance
QSR's performance varies across its segments, with Tim Hortons (TH) leading in revenue generation. The following table summarizes revenues by segment for the three and nine months ended September 30, 2024:
| Segment | Three Months Ended September 30, 2024 | Nine Months Ended September 30, 2024 |
|---|---|---|
| Tim Hortons (TH) | $1,044 million | $3,013 million |
| Burger King (BK) | $362 million | $1,076 million |
| Popeyes (PLK) | $195 million | $567 million |
| Firehouse Subs (FHS) | $53 million | $156 million |
| International (INTL) | $243 million | $698 million |
| Restaurant Holdings (RH) | $441 million | $671 million |
System-Wide Sales Growth
System-wide sales growth is crucial for assessing the overall performance of QSR's brands. The following table provides system-wide sales growth percentages for the three and nine months ended September 30, 2024:
| Brand | Three Months Ended September 30, 2024 | Nine Months Ended September 30, 2024 |
|---|---|---|
| Tim Hortons (TH) | 2.8% | 5.2% |
| Burger King (BK) | (1.5)% | 0.0% |
| Popeyes (PLK) | (0.6)% | 4.6% |
| Firehouse Subs (FHS) | (1.3)% | 1.9% |
| International (INTL) | 8.0% | 9.5% |
| Consolidated | 3.2% | 5.3% |
Operational Expenses
QSR’s operational expenses have shown variations due to acquisitions and restructuring. The following table summarizes key operational costs for the three and nine months ended September 30, 2024:
| Expense Type | Three Months Ended September 30, 2024 | Nine Months Ended September 30, 2024 |
|---|---|---|
| Supply Chain Cost of Sales | $559 million | $1,616 million |
| Company Restaurant Expenses | $473 million | $848 million |
| Franchise and Property Expenses | $134 million | $394 million |
| Advertising Expenses and Other Services | $327 million | $972 million | General and Administrative Expenses | $176 million | $534 million |
Acquisitions and Investments
On May 16, 2024, QSR completed the acquisition of Carrols for a total cash purchase price of $543 million, assuming approximately $431 million in outstanding debt. This acquisition was funded through a combination of cash on hand and incremental borrowings.
Liquidity and Capital Resources
As of September 30, 2024, QSR had cash and cash equivalents of $1,176 million and borrowing availability of $1,247 million under its revolving credit facility. This liquidity is expected to support ongoing operations and capital spending.
Dividend Payments
On October 4, 2024, QSR paid a cash dividend of $0.58 per common share to shareholders of record on September 20, 2024.
How Restaurant Brands International Inc. (QSR) Makes Money
Revenue Streams
Restaurant Brands International Inc. (QSR) generates revenue through various primary channels, including:
- Supply Chain Sales
- Company Restaurant Sales
- Franchise and Property Revenues
- Advertising Revenues and Other Services
Financial Performance Overview
As of September 30, 2024, the company reported the following financial results:
| Category | Three Months Ended September 30, 2024 (in millions) | Three Months Ended September 30, 2023 (in millions) | Nine Months Ended September 30, 2024 (in millions) | Nine Months Ended September 30, 2023 (in millions) |
|---|---|---|---|---|
| Total Revenues | $2,291 | $1,837 | $6,110 | $5,202 |
| Net Income | $357 | $364 | $1,084 | $992 |
| Earnings Per Share (Basic) | $0.79 | $0.80 | $2.41 | $2.19 |
| Earnings Per Share (Diluted) | $0.79 | $0.79 | $2.39 | $2.16 |
Supply Chain Sales
In the third quarter of 2024, supply chain sales amounted to $699 million, down from $706 million in Q3 2023. For the nine months ended September 30, 2024, supply chain sales totaled $2,008 million, compared to $1,989 million in the prior year.
Company Restaurant Sales
Company restaurant sales saw a significant increase, reaching $567 million in Q3 2024, compared to $65 million in Q3 2023. For the nine-month period, these sales totaled $1,016 million, up from $194 million in the prior year.
Franchise and Property Revenues
Franchise and property revenues for Q3 2024 were $735 million, slightly down from $753 million in Q3 2023. Over the nine months, revenues increased to $2,194 million from $2,163 million.
Advertising Revenues and Other Services
Advertising revenues in Q3 2024 were $290 million, a decline from $313 million in Q3 2023. For the nine-month period, these revenues increased to $892 million from $856 million.
Operating Costs and Expenses
The company incurred total operating costs of $1,714 million in Q3 2024, compared to $1,255 million in Q3 2023. The nine-month total was $4,326 million, up from $3,619 million in the previous year.
Segment Performance
Segment income for Q3 2024 was as follows:
| Segment | Income (in millions) |
|---|---|
| Tim Hortons (TH) | $284 |
| Burger King (BK) | $112 |
| Popeyes Louisiana Kitchen (PLK) | $62 |
| Firehouse Subs (FHS) | $12 |
| International (INTL) | $166 |
| Restaurant Holdings (RH) | $16 |
Debt and Interest Expenses
Interest expense for Q3 2024 was $147 million compared to $143 million in Q3 2023. The weighted average interest rate on long-term debt was 4.6% in Q3 2024, down from 5.0% in the prior year.
Key Performance Metrics
For the three months ended September 30, 2024, system-wide sales growth was 3.2%, with comparable sales at 0.3%.
| Brand | System-wide Sales Growth (Q3 2024) | Comparable Sales Growth (Q3 2024) |
|---|---|---|
| Tim Hortons | 2.8% | 2.3% |
| Burger King | (1.5)% | (0.7)% |
| Popeyes | (0.6)% | (4.0)% |
| Firehouse Subs | (1.3)% | (4.8)% |
| International | 8.0% | 1.8% |
Overall, Restaurant Brands International Inc. continues to leverage its diverse portfolio of brands to generate revenue across multiple channels, with significant growth in company restaurant sales and franchise revenues, despite some declines in advertising revenues and system-wide sales for certain segments.
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Resources:
- Restaurant Brands International Inc. (QSR) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Restaurant Brands International Inc. (QSR)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Restaurant Brands International Inc. (QSR)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.