Q3 2024 Restaurant Brands International Inc Earnings Call Transcript
Key Points
- Tim Hortons in Canada delivered a 2.7% increase in comparable sales, driven by traffic growth and strong value offerings.
- International segments saw a 1.8% increase in comparable sales and 7.6% net restaurant growth, outperforming many global peers.
- Burger King International markets like Australia, Spain, Korea, the UK, and Japan showed strong performance, contributing to system-wide sales growth.
- Digital sales growth is strong, with Burger King and Popeyes seeing significant increases in digital sales as a percentage of total sales.
- Franchisee profitability has improved significantly, with Burger King U.S. achieving $205,000 in 4-wall EBITDA by the end of last year, surpassing targets.
- Comparable sales were relatively flat, up only 0.3% year over year, indicating challenges in driving sales growth.
- Burger King U.S. saw a 0.4% decline in comparable sales and a 1.6% decline in net restaurants, reflecting a tough consumer environment.
- Popeyes U.S. experienced a 3.8% decline in comparable sales, attributed to a lack of value offerings in a value-sensitive market.
- System-wide sales growth for the full year 2024 is expected to be slightly below previous expectations, in the 5% to 5.5% range.
- Challenges in China, particularly with Burger King, are impacting overall unit growth, with ongoing disputes with the master franchisee.
Good morning, and welcome to the Restaurant Brands International Third Quarter 2024 earnings conference call. All participants will be in listen only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star and then one on your telephone keypad. You will hear a tone to confirm that you are in the queue. To exit the question queue, you may press star and then 2. All callers will be limited to one question. Please note, this event is being recorded. I'd now like to turn the conference over to Kendall Peck, RBI's Head of Investor Relations. Please go ahead.
Thank you. Very good morning everyone, and welcome to Restaurant Brands International's earnings call for the third quarter ended September 30th, 2024. As a reminder, a live webcast of this call can be accessed on the Investor Relations web page at RBI.com/investor.
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