Restaurant Brands International (QSR) Bernstein 42nd Annual Strategic Decisions Conference summary

Business overview and segment performance

• Operates four major quick service restaurant brands across 120+ countries, with nearly $50 billion in system-wide sales and strong diversification across segments.

• Tim Hortons leads in Canada with high market share, strong unit economics, and consistent value positioning.

• International business delivers 10% annual top-line growth, with significant cash flow and expansion potential, especially in China.

• Burger King has undergone a turnaround, now outperforming peers due to operational improvements, remodels, and the Elevation campaign.

• Popeyes and Firehouse Subs show robust growth, with Popeyes excelling internationally and Firehouse achieving rapid domestic expansion.

Strategic initiatives and capital allocation

• Focus on simplifying the business and refranchising by 2027, aiming for investment-grade credit ratings and enhanced capital flexibility.

• Initiated a CAD 500 million share repurchase program, with plans to expand as free cash flow grows and leverage targets are met.

• Achieving investment-grade status lowers debt costs for both the company and franchisees, supporting further growth and returns.

• Capital allocation balances dividends, share buybacks, and reinvestment, targeting low to mid-teens shareholder returns.

Growth outlook and operational focus

• Targets at least 3% comparable sales growth, 5% unit growth, and 8% AOI growth by 2028, consistently outperforming peers.

• Burger King’s growth is driven by improved service, consistent value, and ongoing restaurant remodels, with further menu and experience enhancements planned.

• International expansion is anchored by strong performance in China and rapid Popeyes growth, leveraging existing networks and digital capabilities.

• Tim Hortons maintains strong fundamentals and value positioning, with opportunities for further unit growth in underpenetrated Canadian regions.

• Popeyes is refocusing on core menu items and operational consistency to regain share, with no structural issues hindering growth.