Restaurant Brands International (QSR) Q4 2024 earnings summary

Executive summary

• Achieved 2.3% 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 progress in franchisee profitability and digital capabilities.

• Introduced a sixth reportable segment, Restaurant Holdings, after acquiring Carrols Restaurant Group and Popeyes China.

• Nearly $1.0 billion was returned to shareholders in 2024, while investing for growth and achieving net leverage targets.

Financial highlights

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

• Adjusted EPS increased to $3.34 from $3.24, up 4.4% organically; Q4 adjusted EPS grew 11% organically to $0.81.

• Free cash flow for 2024 was $1,302M; net leverage improved to 4.6x from 4.8x.

• Adjusted EBITDA for 2024 was $2,784M (up from $2,554M); adjusted operating income up 9% year-over-year.

• Generated $1.5 billion in free cash flow, with $1 billion returned to shareholders via dividends.

Outlook and guidance

• Reaffirmed 8%+ organic AOI growth target for 2025, even factoring in potential headwinds from BK China.

• CapEx for 2025 guided at $400–$450 million, driven by Modern Image investments and development acceleration.

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

• Long-term (2024–2028): 3%+ comparable sales, 5%+ net restaurant growth, 8%+ system-wide sales growth, and adjusted operating income growth at least as fast as system-wide sales.

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