Restaurant Brands International Inc

Q1 Performance Overview: Restaurant Brands International (RBI) reported consolidated comparable sales growth of 0.1% for Q1 2025, or over 1% when excluding the impact of Leap Day. System-wide sales increased by 2.8%, while organic adjusted operating income (AOI) grew by 2.6%. This reflects a more challenging macro environment impacting performance across brands, but still demonstrates relative strength compared to peers in the industry.

Segment Performance and Challenges: - Tim Hortons Canada: Flat comparable sales of 0.1% in Q1, facing tough year-over-year comparisons and macro pressures; however, consumer confidence has improved in April, suggesting potential upside. Future plans include strong marketing initiatives and product innovations aimed at driving growth. - Burger King U.S.: A decrease in comparable sales by 1.1% was reported, although it outperformed the broader burger QSR category. The brand continues to work on operational improvements and marketing strategies to enhance guest experience and profitability. - Popeyes U.S.: Comparable sales decreased by 4% following a successful prior year, attributed to the absence of a Super Bowl ad. The brand is focusing on operational excellence and marketing spend to enhance performance moving forward.

Long-term Growth Forecasts: RBI maintained its long-term targets for 3%-plus comparable sales growth and 8%-plus organic AOI growth on average through 2028. However, net restaurant growth expectations in the near term have been revised slightly downward due to the integration of Burger King China and ongoing complexities within that market.