Global system-wide sales grow 5.6% for the fourth quarter and 5.4% for 2024
Global comparable sales up 2.5% in Q4, led by 4.7% at INTL and 2.5% at TH Canada
2024 Income from Operations grows 17.9% year-over-year and Organic Adjusted Operating Income grew 9%
~$1.0 billion of capital returned to shareholders in 2024 while investing for growth and reaching net leverage target
RBI declares target total of $2.48 in dividends per common share and partnership exchangeable unit for 2025
TORONTO, Feb. 12, 2025 /PRNewswire/ – Restaurant Brands International Inc. (“RBI”) (NYSE: QSR) (TSX: QSR) (TSX: QSP) today reported financial results for the full year and fourth quarter ended December 31, 2024. Josh Kobza, Chief Executive Officer of RBI commented, “I am proud of our performance this year, reflecting the strong foundations we’re building across our businesses and the dedication of our teams and franchisees who are executing the fundamentals of quality, service, and convenience with excellence. As we look ahead, we remain focused on thoughtful marketing, operational improvements, and modern image to enhance the guest experience, drive franchisee profitability, and deliver long-term growth for our brands and shareholders.”
Consolidated Operational and Financial Highlights and Supplemental Annual Disclosure
(in US$ millions, except per share data, unaudited)
Three Months Ended December 31,
Twelve Months Ended December 31,
Operational Highlights
2024
2023
2024
2023
System-Wide Sales Growth
5.6 %
9.6 %
5.4 %
12.2 %
System-Wide Sales (in US$ millions)
$
11,279
$
10,886
$
44,476
$
42,893
Comparable Sales
2.5 %
5.8 %
2.3 %
8.1 %
Net Restaurant Growth
3.4 %
3.9 %
3.4 %
3.9 %
System Restaurant Count at Period End
32,125
31,070
32,125
31,070
Financial Highlights
Total Revenues
$
2,296
$
1,820
$
8,406
$
7,022
Income from Operations
$
635
$
468
$
2,419
$
2,051
Income from Operations Growth
35.4 %
35.8 %
17.9 %
8.1 %
Net Income
$
361
$
726
$
1,445
$
1,718
Diluted Earnings per Share
$
0.79
$
1.60
$
3.18
$
3.76
Adjusted Operating Income (AOI) (a)
$
578
$
509
$
2,402
$
2,200
Organic AOI Growth (a)
13.7 %
0.5 %
9.0 %
7.5 %
Adjusted EBITDA (a)
$
688
$
603
$
2,784
$
2,554
Adjusted Diluted Earnings per Share (a)
$
0.81
$
0.75
$
3.34
$
3.24
Net Leverage (a)
4.6x
4.8x
4.6x
4.8x
Twelve Months Ended December 31,
Home Market Franchisee Profitability (b) (in 000s)
2024
2023
2022
TH — Canada
C$
305
C$
280
C$
220
BK — US
$
205
$
205
$
140
PLK — US
$
255
$
245
$
210
FHS — US
$
90
$
110
$
80
(a)
Adjusted Operating Income, organic AOI growth, Adjusted EBITDA, Adjusted Diluted Earnings per Share, and Net Leverage are non-GAAP financial measures. Please refer to “Non-GAAP Financial Measures” for further detail.
(b)
Estimates based on unaudited, self-reported franchisee results and are rounded down to the nearest $5,000.
Items Affecting Comparability and Restaurant Holdings Segment Reminder
We completed the acquisitions of Carrols Restaurant Group Inc. (“Carrols”) (“the Carrols Acquisition”) and Popeyes China (“PLK China”) (“the PLK China Acquisition”) on May 16, 2024 and June 28, 2024, respectively. Our consolidated results include Carrols and PLK China revenues, expenses and segment income from their acquisition dates.
Following the Carrols and PLK China Acquisitions, RBI established a new operating and reportable segment, Restaurant Holdings (RH), which includes results from the Carrols Burger King restaurants and the PLK China restaurants. RBI reports results under six operating and reportable segments consisting of the following: Tim Hortons (TH), Burger King (BK), Popeyes Louisiana Kitchen (PLK), Firehouse Subs (FHS), International (INTL) and RH.
RBI plans to maintain the franchisor dynamics in its TH, BK, PLK, FHS and INTL segments (“five franchisor segments”) to report results consistent with how the business will be managed long-term given RBI’s plans to refranchise the vast majority of the Carrols Burger King restaurants and to find a new partner for PLK China in the future. RH results include Company Restaurant Sales and expenses, including expenses associated with royalties, rent, and advertising. These expenses are recognized, as applicable, as revenues in the respective franchisor segments (BK and INTL) and eliminated upon consolidation. For more information please review the “Restaurant Holdings Intersegment Dynamics” presentation dated August 8, 2024 posted on our IR website under “Events & Presentations”.
During 2023 and the first quarter of 2024, BK also acquired restaurants from non-Carrols franchisees (“non-Carrols acquired BK restaurants”). BK owned and operated 160 Company restaurants as of December 31, 2024 as compared to 138 as of December 31, 2023, 88 of which were acquired in the fourth quarter of 2023. The results from these restaurants are included in BK Company restaurants sales and expenses.
Beginning with our year-end 2024 results, RBI updated its presentation of Adjusting Operating Income by defining Segment Franchise and Property Expenses (“Segment F&P Expenses”) which exclude Franchise Agreement Amortization and Reacquired Franchise Rights Amortization. These items were previously included in each segment’s franchise and property expenses and added back as an adjustment to Adjusted Operating Income. This presentation change does not impact Adjusting Operating Income or Consolidated results.
Supplemental Disclosures
Please review the Trending Schedules posted on the RBI Investor Relations webpage under “Financial Information” for additional disclosures, including:
TH Segment Results
(in US$ millions, unaudited)
Three Months Ended December 31,
Twelve Months Ended December 31,
2024
2023
2024
2023
System-wide Sales Growth
3.2 %
9.0 %
4.7 %
11.0 %
System-wide Sales
$
1,863
$
1,849
$
7,479
$
7,245
Comparable Sales
2.2 %
8.4 %
3.9 %
10.4 %
Comparable Sales – Canada
2.5 %
8.7 %
4.3 %
10.9 %
Net Restaurant Growth
0.3 %
0.1 %
0.3 %
0.1 %
System Restaurant Count at Period End
4,539
4,525
4,539
4,525
Supply Chain Sales
$
699
$
690
$
2,708
$
2,679
Company Restaurant Sales
$
11
$
11
$
45
$
46
Franchise and Property Revenues
$
242
$
241
$
987
$
955
Advertising Revenues and Other Services
$
74
$
76
$
301
$
292
Total Revenues
$
1,027
$
1,018
$
4,040
$
3,972
Supply Chain Cost of Sales
$
565
$
574
$
2,180
$
2,194
Company Restaurant Expenses
$
9
$
9
$
37
$
38
Segment F&P Expenses
$
77
$
79
$
330
$
319
Advertising Expenses and Other Services
$
72
$
81
$
307
$
309
Segment G&A
$
42
$
47
$
158
$
168
Adjustments:
Cash Distributions Received from Equity Method Investments
$
4
$
4
$
15
$
14
Adjusted Operating Income
$
266
$
231
$
1,043
$
958
The increase in Total Revenues for the full year and fourth quarter was primarily driven by an increase in system-wide sales and higher Supply Chain Sales to franchisees. For the full year, the higher Supply Chain Sales included increased equipment sales. For the fourth quarter, revenue growth also reflected the absence of a prior-year negative adjustment related to increased promotional activity and trade investments in the TH consumer-packaged goods business.
The increase in Adjusted Operating Income for the full year and fourth quarter was primarily driven by the increase in Total Revenues and a decrease in Segment G&A, largely due to lower compensation-related expenses. This was partially offset by an increase in Supply Chain Cost of Sales in local currency, driven by higher volumes, and an increase in Segment F&P Expenses.
Total Revenues and Adjusted Operating Income for both periods were impacted by unfavorable FX movements. Excluding these movements, Total Revenues and Adjusted Operating Income for 2024 increased $121 million and $98 million, respectively, and for the fourth quarter, $32 million and $39 million, respectively.
BK Segment Results
(in US$ millions, unaudited)
Three Months Ended December 31,
Twelve Months Ended December 31,
2024
2023
2024
2023
System-wide Sales Growth
0.5 %
4.9 %
0.2 %
6.9 %
System-wide Sales
$
2,915
$
2,903
$
11,484
$
11,474
Comparable Sales
1.1 %
6.3 %
1.0 %
7.4 %
Comparable Sales – US
1.5 %
6.4 %
1.2 %
7.5 %
Net Restaurant Growth
(0.9) %
(3.3) %
(0.9) %
(3.3) %
System Restaurant Count at Period End
7,082
7,144
7,082
