Mar 31, 2021

RBI Q1 2021 Earnings Report

RBI returned to growth with system-wide sales up compared to 2019 and added 148 net new restaurants.

Key Takeaways

Restaurant Brands International Inc. reported positive Q1 2021 results, signaling a return to growth with system-wide sales surpassing Q1 2019. Net restaurant growth nearly matched the best-ever Q1 performance, driven by digital initiatives and recovery from the pandemic.

System-wide sales surpassed Q1 2019 levels, indicating a return to growth.

Net restaurant growth nearly matched the best-ever Q1 performance in 2018.

Tim Hortons' digital sales in Canada reached 31% in Q1, driven by two million app downloads in March.

Burger King U.S. launched a $1 Your Way value menu, showing encouraging results.

Total Revenue
$1.26B
Previous year: $1.23B
+2.9%
EPS
$0.55
Previous year: $0.48
+14.6%
TH Comparable Sales
-2.3%
Previous year: -10.3%
-77.7%
BK Comparable Sales
0.7%
Previous year: -3.7%
-118.9%
Popeyes Comparable Sales
1.5%
Previous year: 26.2%
-94.3%
Gross Profit
$507M
Previous year: $700M
-27.6%
Cash and Equivalents
$1.56B
Previous year: $2.5B
-37.4%
Free Cash Flow
$251M
Previous year: $117M
+114.5%
Total Assets
$22.9B
Previous year: $22.6B
+1.0%

RBI

RBI

RBI Revenue by Segment

Forward Guidance

The company expects to see a continued impact from COVID-19 on its results in 2021 but is optimistic about the global growth potential and is working towards a return to historic levels of unit growth this year.

Positive Outlook

  • Excited by the global growth potential of our brands.
  • Encouraged by this early momentum as we work toward a return to historic levels of unit growth this year.
  • Home market recovery from the pandemic is well-underway.
  • C$80M investment announced during the quarter to supercharge our advertising and digital platforms.
  • Digital channels will allow us to drive incrementality for our restaurants as well as a more personalized and valuable experience for our guests.

Challenges Ahead

  • COVID-19 had a substantial impact on our global restaurant operations for the three months ended March 31, 2021.
  • Certain jurisdictions, such as Canada, Europe, and Brazil, that had eased restrictions during 2020, re-imposed lockdowns and curfews in the quarter ended March 31, 2021.
  • Expect local conditions to continue to dictate limitations on operations, capacity, and hours of restaurants.
  • Do not know the future impact COVID-19 will have on our business, or when our business will fully return to normal operations.
  • Expect to see a continued impact from COVID-19 on our results in 2021.

Revenue & Expenses

Visualization of income flow from segment revenue to net income