- Restaurant Brands International Inc. (TSX:QSR; NYSE:QSR) reported a 12 per cent increase in net income in its second quarter 2024 financial results Thursday.
- RBI, whose brands include Burger King and Popeyes, saw total revenues increase to US$2.08 billion, up from US$1.775 billion.
- Tim Hortons revenues in Q2 2024 were up slightly to US$1.031 billion compared with US$1.008 billion in Q2 2023.
- Shares of Restaurant Brands International Inc. (TSX:QSR) were up 3.17 per cent, trading at C$100.04 at 12:22 pm ET Thursday.
Tim Hortons parent company Restaurant Brands International’s (TSX:QSR; TSX:QSP; NYSE:QSR) shares were up Thursday after it reported a 12 per cent increase in net income from the previous year in its second quarter 2024 financial results.
In its results for the quarter that ended June 30, RBI, whose brands include Burger King, Popeyes and Firehouse Subs, saw its net income increase to US$399 million from US$351 million in Q2 2023.
Total revenues increased to US$2.08 billion, up from US$1.775 billion, bringing in C$0.88 diluted earnings per share compared with C$0.77 a year ago.
“I am proud of our teams and franchisees who are delivering compelling value to guests every day through excellent food and beverages, outstanding service and improved convenience,” Josh Kobza, chief executive officer of RBI, said in a news release. “Our priorities and balance of thoughtful investments with cost discipline allow us to navigate short-term consumer pressures and drive sustainable results for our business and our franchisees.”
Second quarter 2024 highlights
- Consolidated comparable sales increased 1.9% and net restaurants grew 4.0% versus the prior year
- System-wide sales increased 5.0% year-over-year
- Income from operations of US$663 million versus US$554 million in the prior year
- Diluted EPS was C$0.88 versus C$0.77 in prior year
- Adjusted operating income of US$632 million increased 9.3% organically versus the prior year
- Adjusted Diluted EPS of C$0.86 increased 3.1% organically versus the prior year
Tim Hortons segment revenues in Q2 2024 were up slightly to US$1.031 billion compared with US$1.008 billion in Q2 2023 while adjusted operating income increased to US$269 million compared with US$246 million.
Burger King total revenues in the recent quarter increased to US$364 million compared with US$327 million the year before while adjusted operating income was up slightly to US$114 million from US$110 million in Q3 2023.
Popeyes revenues climbed to US$194 million in Q2 2024, up from US$173 from the previous year, and adjusted operating income rose to US$62 million compared with US$56 million one year earlier.
During the recently completed quarter, RBI completed its acquisition of Carrols Restaurant Group Inc., its largest U.S. franchisee. Carrols revenues, expenses and segment income from the acquisition date of May 16 through June 30 were included in RBI’s Q2 results.
RBI also completed the acquisition of Popeyes China on June 28, which will be included in its consolidated results in Q3 2024. After the Carrols and PLK China acquisitions, RBI created a new operating and reportable segment, Restaurant Holdings that includes results from the Carrols Burger King restaurants and the PLK China restaurants. As a result, RBI now reports results under six operating and reportable segments consisting of Tim Hortons, Burger King, Popeyes Louisiana Kitchen, Firehouse Subs, International and RH.
During 2023 and the first quarter of 2024, Burger King also acquired approximately 125 restaurants from non-Carrols franchisees. As a result, Burger King owned and operated 175 company restaurants as of June 30, 2024, compared with 60 as of June 30, 2023.
Burger King revenue increased to US$364 million in Q2 2024 compared with US$327 million the year before, presumably benefitting from the company’s “Reclaim the Flame” initiative.
In September 2022, Burger King launched its US$400 million “Reclaim the Flame” plan to accelerate sales growth and drive franchisee profitability by investing US$150 million in “Fuel the Flame” advertising and digital investments and US$250 million in “Royal Reset” remodels and relocations, restaurant technology, kitchen equipment and building enhancements.
During the three months ended June 30, Burger King funded US$6 million towards the Fuel the Flame investments and US$10 million toward Royal Reset investments. As of June 30, US$85 million has been invested towards the Fuel the Flame investments and US$90 million toward Royal Reset investments.
Burger King’s Royal Reset 2.0 program is expected to invest an additional US$300 million in remodels from 2025 through 2028. Together with the initial Reclaim the Flame investment and plans to remodel 600 of the recently acquired Carrols restaurants, RBI stated that Burger King will be on a path to achieve its goal of 85 per cent to 90 per cent modern image by 2028.
About Restaurant Brands International Inc.
One of the world’s largest quick service restaurant companies, Restaurant Brands International Inc. generates more than US$40 billion in annual system-wide sales and more than 30,000 restaurants in more than 120 countries. Besides Burger King, Restaurant Brands owns Tim Hortons, Popeyes and Firehouse Subs.
Shares of Restaurant Brands International Inc. (TSX:QSR) were up 3.17 per cent, trading at C$100.04 at 12:22 pm ET Thursday.
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(Top photo of Tim Hortons restaurant: Adobe Stock)