Q4 2024 Restaurant Brands International Inc Earnings Call Transcript
Key Points
- Restaurant Brands International Inc (QSR) achieved a 9% organic adjusted operating income growth in 2024, driven by strong top-line performance and disciplined cost management.
- Tim Hortons Canada surpassed $1 billion in adjusted operating income for the first time, with a 4.3% growth in comparable sales, significantly outperforming major peers.
- The company expanded its digital capabilities and grew in 110 brand market combinations, enhancing guest interactions and solidifying its position as a preferred franchisee home.
- Popeyes UK experienced remarkable growth, surpassing 65 units and achieving nearly $3 million in average restaurant sales, up from $2.6 million in 2023.
- Burger King US outperformed major burger QSR peers with a 1.5% increase in comparable sales in Q4, following a 6.4% increase the previous year.
- Firehouse Subs experienced a decline in full-year comparable sales by about 1% due to challenges in the broader US sub sandwich category.
- Net restaurant growth was affected by geopolitical pressures and net closures in BK China, resulting in a 3.4% growth, below the company's long-term target.
- The company recorded $20 million of net bad debt expenses in Q4, primarily related to Burger King China, impacting financial results.
- Burger King US franchisee profitability remained stable at $205,000, indicating challenges in achieving significant growth in franchisee earnings.
- The company anticipates a $19 million year-over-year impact to 2025 AOI due to unresolved issues with Burger King China, posing a potential headwind.
Good morning, and welcome to the Restaurant Brands International full year fourth quarter 2024 earnings conference call. (Operator Instructions) Please note, this event is being recorded. I would now like to turn the conference over to Kendall Peck, RBI's Head of Investor Relations. Please go ahead.
Thank you, operator. Good morning, and welcome to our earnings call for the year and quarter ended December 31, 2024. Joining me on the call today are Restaurant Brands International Executive Chairman, Patrick Doyle; CEO, Josh Kobza; and CFO, Sami Siddiqui. Following remarks from Josh, Sami and Patrick, we will open the call to questions.
Today's discussion may include forward-looking statements, which are subject to risks detailed in the press release issued this morning and in our SEC filings. We will also reference non-GAAP financial measures. Reconciliations of which are available in the press release and trending schedules available on our website.
Please note that franchisee
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