Restaurant Brands International Exceeds Q4 Expectations Driven by Strong International Growth
Restaurant Brands International (RBI) reported fourth-quarter earnings and revenue that exceeded analyst expectations, largely driven by strong international growth.
Fourth Quarter Financial Highlights
RBI's reported figures for the period ending December 31 were:
- Adjusted Earnings Per Share: 96 cents (vs. 95 cents expected)
- Revenue: $2.47 billion (vs. $2.41 billion expected)
Net income attributable to shareholders for the quarter was $113 million, or 34 cents per share, which was a decrease from $259 million, or 79 cents per share, in the prior year. Excluding specific transaction and restructuring costs, adjusted earnings reached 96 cents per share.
Net sales saw a 7.4% increase, reaching $2.47 billion. After adjusting for currency fluctuations and sales from refranchised restaurants, the company's organic revenue increased by 6.5%.
Overall same-store sales grew by 3.1%, with international same-store sales climbing a significant 6.1%.
Brand Performance and Strategic Initiatives
Burger King
Burger King reported overall same-store sales growth of 2.7%, surpassing projections. International Burger King restaurants, a significant portion of the segment, recorded a 5.8% same-store sales increase, exceeding analyst estimates of 3.7%. The company finalized a joint venture in late January for Burger King China with CPE, a Chinese alternative asset manager, to accelerate expansion. RBI retains a minority stake of approximately 17% and a board seat.
Tim Hortons
Tim Hortons experienced same-store sales growth of 2.9%, falling short of the 3.8% projection. This chain contributed 46% of RBI's total revenue for the quarter.
Popeyes
Popeyes was the only brand to report a decline, with same-store sales falling 4.8%, a steeper drop than the 2.4% decrease forecast. To address performance challenges, RBI has appointed Peter Perdue, a Burger King veteran, to lead Popeyes' U.S. and Canadian operations, and Matt Rubin as the chain's new chief marketing officer.
Restaurant Brands International plans to present further business growth strategies at its investor day in Miami on February 26.