RBI Q3 2024 Earnings Report
Key Takeaways
Restaurant Brands International (RBI) reported a consolidated comparable sales increase of 0.3% and net restaurant growth of 3.8%. Income from Operations was $577 million, and Adjusted Operating Income increased 6.1% organically to $652 million. Diluted EPS was $0.79, while Adjusted Diluted EPS increased 4.6% organically to $0.93. The company is on track to deliver 8%+ organic Adjusted Operating Income growth for 2024.
Consolidated comparable sales increased by 0.3%, with net restaurant growth at 3.8%.
Adjusted Operating Income grew by 6.1% organically, reaching $652 million.
Diluted EPS remained consistent at $0.79, while Adjusted Diluted EPS rose to $0.93.
RBI is confident in achieving its 8%+ Adjusted Operating Income growth target for 2024.
RBI
RBI
RBI Revenue by Segment
Forward Guidance
RBI expects Adjusted Interest Expense, net between $565 million and $575 million and consolidated capital expenditures, tenant inducements and incentives (excluding RH) of approximately $300 million. RBI now expects Segment G&A (excluding RH) for 2024 between $640 million and $650 million, including share-based compensation and non-cash incentive compensation expense between $170 million and $175 million. Long-term consolidated performance that the Company continues to expect to achieve, on average, from 2024 to 2028: •3%+ Comparable Sales; •5%+ Net Restaurant Growth; •8%+ System-wide Sales growth; and •Adjusted Operating Income growth at least as fast as system-wide sales growth.
Positive Outlook
- Expects Adjusted Interest Expense, net between $565 million and $575 million.
- Consolidated capital expenditures, tenant inducements and incentives (excluding RH) of approximately $300 million.
- Segment G&A (excluding RH) for 2024 between $640 million and $650 million.
- Share-based compensation and non-cash incentive compensation expense between $170 million and $175 million.
- Long-term consolidated performance that the Company continues to expect to achieve, on average, from 2024 to 2028
Challenges Ahead
- Substantial indebtedness could adversely affect financial condition.
- Global economic conditions may affect customers' ability to purchase products.
- Relationship with franchisees and their financial stability pose risks.
- Supply chain operations and real estate ownership involve risks.
- Fluctuations in interest rates and currency exchange markets present challenges.
Revenue & Expenses
Visualization of income flow from segment revenue to net income