Restaurant Brands International's Growth Strategies and Brand Success

2024-11-24

Restaurant Brands International (QSR) recently held an earnings call where key executives such as Kendall Peck, Patrick Doyle, Josh Kobza, and Sami Siddiqui discussed various aspects of the company's performance. The acquisitions of Carrols Restaurant Group and Popeyes China in 2024 led to the introduction of a new reportable segment called Restaurant Holdings, showcasing the company's growth strategy.

During the meeting, CEO Josh Kobza highlighted the strong performance of the company's brands, emphasizing their focus on serving fresh, delicious food, providing value to guests, and delivering exceptional service. Tim Hortons, in particular, maintained its position as the #1 value for money in Canada with positive traffic growth. The international business of Restaurant Brands International also outperformed many global peers.

Despite softer system-wide sales growth, the company managed to achieve organic adjusted operating income growth through cost discipline. Tim Hortons' success in Canada was attributed to factors like its value positioning, morning daypart sales growth, and the introduction of flatbread pizzas driving higher average checks and increased restaurant traffic during slower dayparts.

For Burger King, global system-wide sales growth stood at 8.0%, with markets like Australia, Spain, Korea, the U.K., and Japan experiencing growth. The company saw significant improvement in performance in Japan, where it was considered the best burger brand in the market. However, challenges were faced in the U.S. and Canada, with a decline in sales and net restaurants.

Looking ahead, the company aimed to drive franchisee profitability, with a focus on reaching $230,000 by the end of 2026. Strategies to address sales declines at Popeyes included offering better value and driving traffic through promotions. Burger King was actively working to accelerate development in markets like the U.K., while also addressing challenges in regions like China.

The company's long-term outlook included goals for sales growth, net restaurant growth, and system-wide sales growth over the next five years. With a commitment to achieving sustainable growth and enhancing guest experiences across its brands, Restaurant Brands International continued to navigate challenges and capitalize on opportunities in the competitive food industry landscape.