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Mar 31, 2023
RBI Q1 2023 Earnings Report
RBI reported a strong Q1 2023 with double-digit comparable sales and system-wide sales growth, translating into bottom-line growth for franchisees and the company.
Key Takeaways
Restaurant Brands International (RBI) reported a solid start to 2023, with double-digit comparable sales and system-wide sales growth. Consolidated comparable sales increased by 10.3%, and net restaurants grew by 4.2%. Net income reached $277 million, and adjusted EBITDA increased by 15.6% to $588 million. Diluted EPS was $0.61, while adjusted diluted EPS rose by 22.1% to $0.75.
Consolidated comparable sales increased 10.3% and net restaurants grew 4.2% year-over-year.
System-wide sales increased 14.7% year-over-year.
Net Income of $277 million versus $270 million in prior year.
Adjusted Diluted EPS of $0.75 increased 22.1% organically versus the prior year.
RBI
RBI
RBI Revenue by Segment
Revenue by Segment
Tim Hortons Revenue
CapyFin.comBurger King Revenue
CapyFin.comPopeyes Revenue
CapyFin.comFirehouse Subs Revenue
CapyFin.com Forward Guidance
The press release contains forward-looking statements regarding the macroeconomic environment, the impact of the war in Ukraine and COVID-19, and related macro-economic pressures such as inflation, rising interest rates and currency fluctuations. It also discusses expectations regarding digital, marketing, remodel and technology enhancement initiatives, including the 'Reclaim the Flame' plan for Burger King. The company's growth opportunities, plans, and strategies for each brand, including global expansion and restaurant openings, are also mentioned.
Positive Outlook
- Double-digit comparable sales and system-wide sales growth.
- Top line sales momentum translating into bottom line growth for franchisees and the company.
- Focus on improving operations and delivering a great guest experience.
- Planned investments in advertising, digital capabilities, remodels, and restaurant technology.
- Commitment to long-term, sustainable growth through global expansion and restaurant openings.
Challenges Ahead
- Increases in commodity, labor, and energy costs due to macroeconomic factors.
- Potential impact of further increases in inflation on global, Canadian, and U.S. economies.
- Risk of foreign exchange volatility and rising interest rates.
- Potential adverse impact if the company and franchisees cannot adjust prices sufficiently to offset cost increases without negatively impacting consumer demand.
- Risks related to unforeseen events such as pandemics and supply chain disruptions.
Revenue & Expenses
Visualization of income flow from segment revenue to net income