Q2 2025 Restaurant Brands International Inc Earnings Call Transcript
Key Points
- Restaurant Brands International Inc (QSR) reported a 5.3% increase in system-wide sales and a 5.7% growth in organic adjusted operating income, reflecting strong brand performance and effective cost management.
- Tim Hortons achieved its 17th consecutive quarter of positive comparable sales in Canada, driven by successful marketing campaigns and product innovations.
- The International segment delivered nearly 10% system-wide sales growth, with strong performance in key markets like the UK, Spain, Australia, and Germany.
- Burger King China showed positive comparable sales and improved unit economics, indicating successful strategic adjustments and operational focus.
- The company is making progress with its refranchising efforts, including the early launch of Carrols refranchising, which is ahead of schedule.
- Bad debt expenses increased to $9 million this quarter, compared to a net recovery of $6 million in the prior year, impacting international business and Tim Hortons' supply chain costs.
- Burger King US experienced modest comparable sales growth of 1.5%, indicating a challenging industry backdrop.
- Popeyes US saw a 0.9% decline in comparable sales, despite system-wide sales growth, highlighting operational challenges.
- The company faces significant beef price inflation, which is expected to result in a mid-single-digit increase in the total commodity basket for Burger King US.
- Burger King France has been a softer market, although recent improvements have been noted.
Good morning, and welcome to the Restaurant Brands International second-quarter 2025 earnings conference call. (Operator Instructions) And 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, everyone, and welcome to Restaurant Brands International's earnings call for the second quarter ended June 30, 2025. Joining me on the call today are Restaurant Brands International's 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 on our IR
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