Restaurant Brands International Inc. Q3 FY2024 earnings call

• Teams and franchisees navigating macro and competitive challenges. - Fundamentals like fresh food, value, and operations driving success. - Tim Hortons in Canada maintains leading market share with traffic growth and value offerings. - International segment outperforming peers with strong market execution. - Burger King U.S. making progress on remodels, marketing, and franchisee profitability. - Popeyes introducing value menu items and improving operations. - Firehouse accelerating unit development.

Tim Hortons: Contributes 43% of AOI. In Canada, comparable sales up 2.7% driven by traffic growth, PM main food sales up 5.2%, cold beverage sales 43% of total. International segment: Drives nearly 70% of adjusted operating income. Burger King in international markets outperforms peers with strong market mix. Burger King U.S. and Canada: Comparable sales down 0.4%, net restaurants declined 1.6%, but making progress on remodels and franchisee profitability. Popeyes: U.S. net restaurants up 3.6%, comps down 3.8%, but introducing value offers like 3 pieces of chicken for $5. Firehouse: System-wide sales down 1.3%, but net restaurant growth up 3.9%.

• Full year 2024 system-wide sales growth expected 5%-5.5%, organic AOI growth on track to exceed 8%. - 2025 plans include franchisee ad fund levy increase from 4% to 4.5%, roll-off of $60M ad fund investment, and acceleration of remodels.

• Macro and competitive environments impacting performance. - Challenges in Burger King China with ongoing dispute resolution. - Consumer spending pressures affecting sales. - Geopolitical risks in international markets.

Q: Brian Bittner asks about Burger King International's outperformance versus peers.

A: Joshua Kobza attributes it to getting basics right, product quality, and market execution in markets like Australia and Japan.

Q: John Ivankoe asks about growing Burger King U.S. franchisee base and Carrols units.

A: Joshua Kobza mentions new franchisees from various sources including current team members and Carrols employees.

Q: Dennis Geiger asks on unit growth outlook.

A: Joshua Kobza highlights progress in Burger King U.S., Firehouse, Tims in U.S. and Canada, and international growth in markets like India, Mexico, Japan, and U.K.

Q: David Palmer asks on China and Tims Canada.

A: Sami Siddiqui discusses ongoing work in China and Joshua Kobza reinforces Tims Canada's healthy growth driven by basics and innovation.

Q: Gregory Francfort asks on Popeyes.

A: Joshua Kobza mentions Popeyes improving with value offerings and progress in franchise profitability.

Q: Lauren Silberman asks on Tims trends and 2025 guide.

A: Joshua Kobza and Sami Siddiqui discuss Tims trends and implications of Reclaim the Flame on 2025 outlook.

Q: Danilo Gargiulo asks on value messaging and franchise profitability.

A: Joshua Kobza talks about balancing value offerings and innovation, and progress in franchise profitability across brands.

Q: Sara Senatore asks on Burger King U.S. and Tims Canada.

A: Joshua Kobza and J. Doyle discuss Burger King U.S. improvements and Tims Canada's healthy growth.

Q: Jon Tower asks on Burger King U.S. campaign and remodels.

A: Joshua Kobza confirms campaign plans and positive returns on remodels.

Q: Christine Cho asks on Burger King U.S. income cohorts.

A: Joshua Kobza states no new notable trends in income cohort performance.