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Sep 30, 2020
RBI Q3 2020 Earnings Report
RBI's financial performance reflected the impact of the COVID-19 pandemic, with system-wide sales showing a decline, though Popeyes experienced growth. The company focused on reopening restaurants and advancing long-term digital strategies.
Key Takeaways
Restaurant Brands International (RBI) reported Q3 2020 results, noting that system-wide sales were down 5.4% year-over-year. Total revenues reached $1.337 billion, a decrease from $1.458 billion in the prior year. Net income attributable to common shareholders was $223 million, compared to $351 million in Q3 2019. Despite challenges, the company highlighted progress in restaurant reopenings and digital initiatives.
System-wide sales decreased by 5.4% compared to the prior year.
Comparable sales for Tim Hortons and Burger King declined, while Popeyes showed growth.
Adjusted EPS was $0.68, down from $0.72 in the same quarter last year.
Digital menu boards are planned for over 10,000 Tim Hortons and Burger King restaurants in the US and Canada by mid-2022.
Revenue by Segment
Forward Guidance
The company expects to see a continued impact from COVID-19 on our results in the fourth quarter.
Positive Outlook
- Progress behind initiatives in product quality positions brands for long-term growth
- Progress behind initiatives in digital positions brands for long-term growth
- Progress behind initiatives in development positions brands for long-term growth
- We are excited to roll out digital drive-thru menu boards to over 10,000 Tim Hortons and Burger King restaurants in the US and Canada, the bulk of which will be installed by the end of next year
- We are fortunate to have a diversified, well-capitalized network of partners around the world and we are working closely with each of them on plans to capitalize on emerging opportunities and return to growth in 2021
Challenges Ahead
- Our results this quarter continued to be impacted by the COVID-19 global pandemic
- While we do not know the future impact COVID-19 will have on our business, or when our business will fully return to normal operations, we expect to see a continued impact from COVID-19 on our results in the fourth quarter.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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