Restaurant Brands International (QSR) Morgan Stanley Global Consumer & Retail Conference summary

Industry performance and consumer trends

• Early 2024 saw stronger performance, but consumer spending softened in Q2 and summer due to confidence and interest rates, leading to a focus on value.

• Four consecutive months of improving consumer confidence and industry sales since July, aided by easing interest rates and normalized gas prices.

• Geopolitical tensions from the prior year are now lapping, positively impacting international comps into next year.

• Tims in Canada outperformed, driven by strong fundamentals and best-in-industry brand scores.

Store development and growth outlook

• Shortfall in 2024 store growth mainly due to geopolitical impacts and softness in China, especially in Tims and BK China.

• Dispute with BK China partner ongoing; working to resolve and ramp up growth, especially for Popeyes China in 2025.

• U.S. brands like Burger King and Firehouse are showing improved unit growth and profitability, with Firehouse up 40% in NRG.

• International growth is driven by high-revenue markets like France and the U.K., while Asia contributes less to system-wide sales.

Brand and product innovation

• Tims Canada leads in sales and traffic among QSRs, with a strong pipeline of menu innovations and ongoing market share gains.

• Store growth in Canada is expected to accelerate, focusing on freestanding drive-throughs in underpenetrated areas.

• Tims U.S. is expanding through new development agreements, aiming for consistent unit economics to unlock broader growth.