Restaurant Brands International (QSR) 4th Annual Evercore ISI Consumer and Retail Conference summary

Growth algorithm and financial outlook

• Targeting 8%+ system-wide sales and operating income growth for 2024, with mid-4% net restaurant growth and 4% same-store sales needed to achieve goals.

• Q1 same-store sales exceeded 4.5%, with expectations to meet full-year targets despite tougher Q2 comps and softer Q4 comps.

Tim Hortons: Market positioning and innovation

• Tim Hortons is well-positioned in Canada due to strong value-for-money perception and quality, even amid softer consumer trends and rising unemployment.

• Population growth in Canada acts as a tailwind, with over 1 million added last year.

• Focus on expanding lunch and PM dayparts with menu innovations like Loaded Bowls, wraps, and flatbreads, supported by operational improvements.

• Cold beverage mix is growing, reaching 50/50 with hot beverages in summer, but climate limits full shift seen in U.S. competitors.

• Renovations and kitchen upgrades are improving speed and guest satisfaction, especially during morning peaks.

Tim Hortons U.S. and unit growth

• U.S. expansion is a key driver for net unit growth through 2028, with a smaller footprint and enhanced product offerings.

• New franchisees are joining across multiple states, and under-penetrated Canadian regions are also being considered for growth.