The earnings call highlights strong performance in the International segment and Tim Hortons, with improvements expected in October trends and franchisee profitability. However, challenges persist with declines in Burger King U.S. and Popeyes U.S. sales, and development issues in China affecting system-wide sales growth expectations.

Company Guidance

During the Restaurant Brands International third-quarter 2024 earnings call, guidance was provided with key metrics highlighting the company's performance and future outlook. The company reported a 0.3% year-over-year increase in comparable sales and a 3.8% growth in net restaurants, resulting in a system-wide sales growth of 3.2%. Organic adjusted operating income (AOI) grew by 6.1%, and the company anticipates exceeding 8% AOI growth for the full year 2024, despite system-wide sales growth expected to fall slightly below previous expectations at 5% to 5.5%. The company cited significant progress in franchisee profitability and the rollout of strategic initiatives, including the Reclaim the Flame plan for Burger King U.S., which has already improved franchisee profitability. Additionally, the company expects to achieve mid-4x net leverage by year-end and noted the positive impact of improvements in drive-thru service, menu innovation, and marketing strategies on its performance. Looking forward to 2025, the company aims to maintain its long-term guidance of achieving 3%+ comparable sales growth, 5%+ net restaurant growth, and 8%+ AOI growth on average over the next five years.

Strong Performance from Tim Hortons

Tim Hortons delivered a 2.7% increase in comparable sales, primarily driven by traffic growth, and remains #1 value for money in Canada. Morning daypart sales grew in line with overall sales, anchored by mid-single-digit growth in breakfast sandwiches and wraps.

International Segment Growth

The International segment saw comparable sales growth of 1.8% with net restaurant growth of 7.6% and system-wide sales growth of 8.0%. Burger King grew in key markets like Australia, Spain, Korea, the U.K., and Japan.

Positive October Trends

Business accelerated in October with consolidated comparable sales up low single digits, led by improvements in International, Burger King, and Popeyes.

Organic Adjusted Operating Income Growth

Organic adjusted operating income grew by 6.1%, with expectations to exceed 8% AOI growth for the full year 2024.

Franchisee Profitability Improvements

Burger King achieved $205,000 in average franchisee profitability last year, with expectations to reach $230,000 by the end of 2026.

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Restaurant Brands International (DE:0R6) Earnings, Revenues Date & History

The upcoming earnings date is based on a company’s previous reporting, and may be updated when the actual date is announced

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DE:0R6 Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
Aug 01, 2018	2018 (Q2)	- / 0.58	0.432	33.70% (+0.15)	―	―
Oct 24, 2018	2018 (Q3)	- / 0.55	0.501	10.22% (+0.05)	―	―
Feb 11, 2019	2018 (Q4)	- / 0.61	0.561	8.64% (+0.05)	―	―
Apr 29, 2019	2019 (Q1)	- / 0.50	0.571	-12.63% (-0.07)	―	―
Aug 02, 2019	2019 (Q2)	- / 0.63	0.578	9.68% (+0.06)	―	―
Oct 28, 2019	2019 (Q3)	- / 0.63	0.553	14.76% (+0.08)	―	―
Feb 10, 2020	2019 (Q4)	- / 0.67	0.61	10.39% (+0.06)	―	―
May 01, 2020	2020 (Q1)	- / 0.46	0.499	-8.65% (-0.04)	―	―
Aug 06, 2020	2020 (Q2)	- / 0.30	0.634	-53.30% (-0.34)	―	―
Oct 27, 2020	2020 (Q3)	- / 0.60	0.634	-4.89% (-0.03)	―	―

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed

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DE:0R6 Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
Nov 05, 2024	€63.63	€61.89	-2.74%
Aug 08, 2024	€64.42	€63.14	-1.98%
Apr 30, 2024	€67.11	€67.40	+0.44%
Feb 13, 2024	€70.82	€67.09	-5.27%

Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.

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