Restaurant Brands International Inc. (QSR, Financial) is touting an abundance of good news -- earnings growth above average, its payment of the same dividend for a third quarter, finalizing the purchase of Firehouse Subs and signing a deal to bring one of its concepts to France.
The company will begin trading ex-dividend on Dec. 20. A cash dividend payment of 53 cents per share is set to be paid on Jan. 5. Shareholders who purchased the stock prior to the ex-dividend date are eligible for the cash dividend payment.
“This marks the third quarter that QSR has paid the same dividend. At the current stock price of $57.73, the dividend yield is 3.67%,” reported Nasdaq.com. “The previous trading day's last sale of QSR was $57.73, representing a -18.83% decrease from the 52 week high of $71.12 and a 6.55% increase over the 52 week low of $54.18.”
The company’s present earnings per share is $2.42. Zacks Investment Research reported that its forecasted earnings growth in 2021 as 37.22%, compared to an industry average of 32%.
Restaurant Brands is one of the world's largest quick-service restaurant companies with approximately $35 billion in annual system-wide sales and over 28,000 restaurants in more than 100 countries.
Two days ago, executives inked a master franchise and development agreement with French restaurant group Napaqaro, which the company said is projected to open hundreds of restaurants in coming years.
"We're delighted to announce this landmark agreement for Popeyes and can’t wait to introduce our iconic chicken to France, one of the largest QSR markets in the world." David Shear, president international at Restaurant Brands, said at the time of the announcement. “This is another significant step in Popeyes’ European journey and follows successful entries into Spain and most recently the U.K. Today’s announcement demonstrates our ability to partner with leading institutional investors who have backed best-in-class local operators.”
Management also announced this week they had completed the previously announced acquisition of Firehouse Restaurant Group Inc. for $1.0 billion. With the close of the acquisition, Restaurant Brands adds “a strong, loved and purpose-driven restaurant brand to its existing family of quick service restaurant brands, Tim Hortons, Burger King, and Popeyes."
The Firehouse Subs concept is known for a menu featuring hot and hearty subs piled high with high-quality meats and cheeses. It was founded in Jacksonville, Florida in 1994 by firefighter brothers Chris Sorensen and Robin Sorensen. The chain has engendered much community good will through its commitment to saving lives through the non-profit Firehouse Subs Public Safety Foundation.
Also on Monday, subsidiaries of Restaurant Brands entered into an amendment to their existing credit agreement, extending the maturity date of its senior secured revolving credit facility from Oct. 7, 2024 to Dec. 13, 2026 and increasing the existing term loan A facility with $717 million outstanding to a $1.25 billion term loan A facility with the same maturity as the Revolving Credit Facility.
The 2021 amendment also amended the interest rate applicable to the revolving credit facility and the term loan A facility to be based on term SOFR and includes amendments to certain negative covenants to provide increased flexibility.