Dec 31, 2020

RBI Q4 2020 Earnings Report

RBI reported Q4 2020 earnings with a decline in system-wide sales growth and comparable sales for Tim Hortons, Burger King, and Popeyes. Diluted EPS was $0.30, and adjusted diluted EPS was $0.53.

Key Takeaways

Restaurant Brands International reported a decrease in total revenues and net income for Q4 2020, impacted by the COVID-19 pandemic. System-wide sales growth declined, and comparable sales decreased for TH, BK, and PLK. The company focused on digital innovation and restaurant development.

Global digital sales reached $6 billion in 2020, more than doubling in home markets.

Off-premise channels showed continued strength across all brands, with global delivery sales doubling in 2020.

Accelerated transformation of drive-thru experience with 3,600 digital menu boards installed in home markets in 2020.

RBI declared its 9th consecutive dividend increase and ended 2020 with $2.6 billion of available liquidity.

Total Revenue
$1.36B
Previous year: $1.48B
-8.2%
EPS
$0.53
Previous year: $0.75
-29.3%
TH Comparable Sales
-11%
Previous year: -4.3%
+155.8%
BK Comparable Sales
-7.9%
Previous year: 2.8%
-382.1%
Popeyes Comparable Sales
-5.8%
Previous year: 34.4%
-116.9%
Gross Profit
$764M
Previous year: $861M
-11.3%
Cash and Equivalents
$1.56B
Previous year: $1.53B
+1.8%
Free Cash Flow
$267M
Previous year: $1.41B
-81.1%
Total Assets
$22.8B
Previous year: $22.4B
+1.9%

RBI

RBI

RBI Revenue by Segment

Forward Guidance

RBI expects a continued impact from COVID-19 on its results in 2021. The company is targeting a total of $2.12 in dividends per common share and partnership exchangeable unit of RBI LP for 2021.

Positive Outlook

  • Efforts in food and beverage quality will be beneficial.
  • Restaurant experience improvements will be beneficial.
  • Digital leadership will be beneficial.
  • Brand building will be beneficial.
  • Restarting the development engine.

Challenges Ahead

  • Continued impact from COVID-19 on our results in 2021.
  • Temporary closures of and restrictions on restaurants in various regions around the world.
  • Capacity may be limited in certain markets.
  • Local conditions may lead to closures or increased limitations.
  • Uncertainty about when the business will fully return to normal operations.

Revenue & Expenses

Visualization of income flow from segment revenue to net income