News

RBI Q2 results: positive, fall short of predictions

August 4, 2016

Restaurant Brands International, parent  company of Tim Hortons and Burger King, reported this week that its second-quarter are positive but not as high as some analysts previously predicted.

Here are some of the second-quarter highlights for RBI as a whole: 

• Total revenues of $1,040.2 million (down from $1,042.2 million in prior year). 
• Income attributable to common shareholders of $90.9 million (up from $11 million prior year). 
• Diluted EPS up to 38 cents from 5 cents prior year. 
• Adjusted EBITDA up 16.2 percent to $479.1 million
• Adjusted diluted EPS up 38.3 percent to 41 cents.
• RBI dividend is 16 cents. 

Tim Hortons second quarter highlights include:

• Comparable sales increased 2.7 percent.
• Restaurant count increased 3.3 percent. 
• System sales increased 4.8 percent. 

Burger King second quarter highlights include: 

• Comparable sales increased 0.6 percent.
• Restaurant count increased 3.9 percent. 
• System sales increased 4.8 percent. 

"We ended the second quarter with solid system-wide sales growth at both of our iconic brands, Tim Hortons and Burger King, driven by growth in our global restaurant footprint and compelling product launches," RBI CEO Daniel Schwartz said in a news release. "We continued to achieve strong earnings growth versus prior year results and believe that the execution of our brand-specific strategies by our franchisees and employees will drive sustainable value for years to come."

The company reported that total revenues fell primarily due to unfavorable Forex movements, partially offset by system-wide sales growth at both brands. RBI said income and EPS grew primarily due to the absence of those one-time expenses from the 2015 debt refinancing, as well as effective cost management, and the absence of the one-time expenses associated with the Tim Hortons transaction. Adjusted EBITDA growth was driven by organic growth at both brands combined with cost discipline, according to a news release.

The company said that the growth in Burger King system-wide sales year-over-year was largely due to strength in Asia Pacific, Latin America and the Caribbean markets, which was partially offset by softness in the U.S. and Canada. 

The RBI dividend will be paid Oct. 4 to shareholders and unit-holders of record at the close of business on Sept. 6.