Jun 30, 2021

RBI Q2 2021 Earnings Report

Reported improved global system-wide sales growth, accelerated unit growth, scaled up digital sales, expanded liquidity, and authorized a share buyback program.

Key Takeaways

Restaurant Brands International reported positive financial results for Q2 2021, with continued improvement in global system-wide sales growth, accelerating to +4% compared to 2019. Unit growth returned to pre-pandemic levels with 378 net new restaurants opened in the first half of the year. Digital sales in home markets scaled up by nearly +60% year over year and +15% sequentially. The company's liquidity expanded to $2.8 billion, and net leverage declined significantly. The Board authorized a $1 billion buyback program, demonstrating confidence in the company's value creation opportunity.

Global system-wide sales growth improved, reaching +4% compared to 2019.

Unit growth returned to pre-pandemic levels, with 378 net new restaurants opened in H1.

Digital sales in home markets scaled up by nearly +60% year over year and +15% sequentially.

Liquidity expanded to $2.8 billion, net leverage declined, and a $1 billion buyback program was authorized.

Total Revenue
$1.44B
Previous year: $1.05B
+37.2%
EPS
$0.77
Previous year: $0.33
+133.3%
TH Comparable Sales
27.6%
Previous year: -29.3%
-194.2%
BK Comparable Sales
18.2%
Previous year: -13.4%
-235.8%
Popeyes Comparable Sales
-0.3%
Previous year: 24.8%
-101.2%
Gross Profit
$612M
Previous year: $575M
+6.4%
Cash and Equivalents
$1.76B
Previous year: $1.54B
+14.4%
Free Cash Flow
$699M
Previous year: $40M
+1647.5%
Total Assets
$23.2B
Previous year: $22B
+5.6%

RBI

RBI

RBI Revenue by Segment

Forward Guidance

The company expects to see a continued impact from COVID-19 on its results in 2021. The company expects local conditions to continue to dictate limitations on restaurant operations, capacity, and hours of operation. With the pandemic affecting consumer behavior, the importance of digital sales, including delivery, has grown. The company expects to continue to support enhancements of its digital and marketing capabilities.

Positive Outlook

  • Continued support enhancements of our digital and marketing capabilities.
  • Focus on quality menu items
  • Rapid adoption of our digital channels by our guests
  • Acceleration in new restaurant openings around the world
  • Dedicated franchise partners

Challenges Ahead

  • Continued impact from COVID-19 on our results in 2021.
  • Local conditions continue to dictate limitations on restaurant operations, capacity, and hours of operation.
  • Pandemic affecting consumer behavior
  • Risks related to unforeseen events such as pandemics
  • Risks related to supply chain

Revenue & Expenses

Visualization of income flow from segment revenue to net income