Restaurant Brands International (QSR) Q4 2024 earnings summary

Executive summary

• Achieved 2.3%–2.5% global comparable sales growth, 3.4% net restaurant growth, and 5.4% system-wide sales growth in 2024, outperforming most global QSR peers on both top and bottom lines.

• Income from operations increased 17.9% year-over-year for 2024; organic adjusted operating income grew 9%.

• Focused on operational excellence, menu innovation, and modernizing restaurant image, with significant investments in training, equipment, and digital capabilities.

• Franchisee profitability improved across key brands, with Tims Canada and Popeyes U.S. showing notable EBITDA gains; Burger King U.S. stable, Firehouse Subs faced category headwinds.

• Strategic acquisitions of Carrols Restaurant Group and Popeyes China led to the creation of a new Restaurant Holdings segment.

Financial highlights

• Organic adjusted operating income (AOI) grew 9% year-over-year, driven by cost discipline and operating leverage.

• Adjusted EPS for 2024 was $3.34, up from $3.24 in 2023; Q4 adjusted EPS grew 11% organically to $0.81.

• Free cash flow reached $1.5 billion, with over $1 billion returned to shareholders via dividends; net leverage improved to 4.6x.

• Q4 total revenues were $2,296M (up from $1,820M); full-year revenues reached $8,406M (up from $7,022M).

• Full-year gross profit margin was 19.5%, slightly above guidance.

Outlook and guidance

• Reaffirmed long-term growth algorithm: 3%+ comps, 5%+ net restaurant growth, 8%+ system-wide sales, and 8%+ organic AOI growth (2024–2028).

• Expecting another year of 8%+ organic AOI growth in 2025, even factoring in potential headwinds from BK China.

• CapEx for 2025 guided at $400–$450 million, reflecting stepped-up remodels and development.

• Adjusted net interest expense expected to improve to $500–$520 million in 2025.

• Targeting $2.48 in dividends per share/unit for 2025.