Restaurant Brands International Inc. Reports Strong Q1 2023 Results with Double-Digit Comparable Sales Growth and Net Restaurant Growth
Restaurant Brands International Inc. is a quick-service restaurant company that operates in Canada, the United States, and internationally. It operates through four segments: Tim Hortons, Burger King, Popeyes Louisiana Kitchen, and Firehouse Subs. The company owns and franchises Tim Hortons chain of donut/coffee/tea restaurants that offer blend coffee, tea, and espresso-based hot and cold specialty drinks; and fresh baked goods, including donuts, Timbits, bagels, muffins, cookies, and pastries, grilled paninis, classic sandwiches, wraps, soups, and other food products. It is also involved in owning and franchising Burger King, a fast-food hamburger restaurant chain, which offers flame-grilled hamburgers, chicken, and other specialty sandwiches, French fries, soft drinks, and other food items; and Popeyes Louisiana Kitchen quick service restaurants that provide Louisiana-style fried chicken, chicken tenders, fried shrimp and other seafood, red beans and rice, and other regional items. In addition, the company owns and franchises Firehouse Subs quick service restaurants that offer meats and cheese, chopped salads, chili and soups, signature and other sides, soft drinks, and local specialties.
Restaurant Brands International Inc. is one of the world’s largest quick-service restaurant companies with over $35 billion in annual system-wide sales and approximately 30,000 restaurants in more than 100 countries. RBI owns four of the world’s most prominent and iconic quick-service restaurant brands – TIM HORTONS, BURGER KING, POPEYES, and FIREHOUSE SUBS. For decades, these brands have been serving their guests, franchisees, and communities independently.
In the first quarter of 2023, the increase in system-wide sales was driven by net restaurant growth of 10.8% and comparable sales of 5.6%, including US comparable sales of 3.4%. The consolidated comparable sales increased 10.3%, and net restaurants grew 4.2% versus the prior year. There was a 14.7% increase in sales across the entire system. Its overall revenue grew by 9.6% year-over-year, to US$1.49-billion, beating analysts’ estimates. The quarter’s Adjusted EBITDA increased by 11% compared to the previous year, reaching $588 million. Adjusted EBITDA of $588 million increased 15.6% organically versus the prior year.
In Q1 of 2023, the growth in overall sales was propelled by comparable sales that surged by 10.8%. This surge was primarily driven by US comparable sales of 8.7% and rest of the world comparable sales of 12.3%. Additionally, the growth was also supported by a net restaurant growth of 2.5%. At Tim Hortons, comparable sales grew in the quarter by 13.8%, with same-store sales growth of 15.5% in Canada, its home market.
0. “Restaurant Brands International Inc. Reports First Quarter 2023 Results” Canada NewsWire, 2 May. 2023, https://www.newswire.ca/news-releases/restaurant-brands-international-inc-reports-first-quarter-2023-results-844892521.html