RBI Q2 2024 Earnings Report
Key Takeaways
Restaurant Brands International reported a consolidated system-wide sales increase of 5.0% year-over-year and global comparable sales growth of 1.9%. The company's net income increased to $399 million, and diluted EPS reached $0.88. Strategic transactions during the quarter are expected to strengthen long-term positioning in the US and China.
Consolidated comparable sales increased by 1.9%, and net restaurants grew by 4.0% compared to the previous year.
System-wide sales saw a 5.0% increase year-over-year.
Income from Operations reached $663 million, compared to $554 million in the prior year.
Net Income amounted to $399 million, an increase from $351 million in the previous year.
RBI
RBI
RBI Revenue by Segment
Forward Guidance
RBI continues to expect consolidated capital expenditures, tenant inducements and incentives (excluding RH) of approximately $300 million. RBI now expects Adjusted Net Interest Expense, between $565 million and $575 million and Segment G&A (excluding RH) for 2024 between $640 million and $660 million, including share-based compensation and non-cash incentive compensation expense between $170 million and $180 million.
Positive Outlook
- Consolidated capital expenditures are expected to be approximately $300 million (excluding RH).
- Adjusted Net Interest Expense is projected to be between $565 million and $575 million.
- Segment G&A (excluding RH) is anticipated to range from $640 million to $660 million for 2024.
- Share-based compensation and non-cash incentive compensation expense are expected to be between $170 million and $180 million.
- Long-term consolidated performance from 2024 to 2028 expects 3%+ Comparable Sales.
Challenges Ahead
- Guidance excludes Restaurant Holdings (RH), indicating potential uncertainty in that segment.
- The projections are subject to various risks and uncertainties, as detailed in RBI's filings with regulatory authorities.
- Global economic conditions may affect consumer spending, impacting the company's performance.
- Fluctuations in interest rates and currency exchange markets could affect financial results.
- Unforeseen events such as pandemics and geopolitical conflicts could disrupt operations and performance.
Revenue & Expenses
Visualization of income flow from segment revenue to net income