Restaurant Brands International | 2nd Quarter 2022

Tim Hortons Canada above pre-crisis-level

Tim Hortons, which accounts for approximately 60% of revenue for RBI, has added nearly 300 new net stores since its second quarter in 2021, driven by expansion in China.
IMAGO / Buzzi
Tim Hortons, which accounts for approximately 60% of revenue for RBI, has added nearly 300 new net stores since its second quarter in 2021, driven by expansion in China.

Restaurant Brands International Inc. has reported financial results for the second quarter ended June 30, 2022. Global System-wide sales grow 14%, up nearly $1 billion year-over-year to over $10 billion. Consolidated comparable sales accelerate to 9% with 14% growth at Tim Hortons Canada, 18% at Burger King International.

At the forefront of growth is Canadian coffee chain Tim Hortons. System-wide Sales of the Ontario-based Tim Hortons, which operates over 3,900 stores in Canada and an additional 1,400 globally, achieved 16.7% growth in its native Canadian market to reach $1.56bn. Meanwhile Tim Hortons outlets in the rest of the world reported a 14% rise for the period ended 30 June 2022, reaching $270m. At home, the brand has seen sales exceed pre-pandemic levels for the first time.

System-wide Sales at Tim Hortons grew by 16.3%, for Burger King a plus of 14.6% was reported while Popeyes' sales increased by 9.9%. The newly acquired brand Firehouse Subs grew by 2.2% in the reported quarter. Digital sales within the Restaurant Brands international portfolio grow double-digits year-over-year to over $3 billion, representing 33% of system-wide sales.

"The team at Tim Hortons Canada delivered exceptional results this quarter, aided by investments against our Back to Basics plan and strong execution from our committed group of restaurant owners. In the second quarter, we drove sales above pre-pandemic levels for the first time since the onset of the pandemic and continue to build strong momentum as we move to accelerate growth. We believe there is a long runway for Tim's in Canada, anchored by great product quality, menu and digital innovation, and a strong group of restaurant owners," said José Cil, Chief Executive Officer of RBI.

"We continue to see steady improvements in our Burger King U.S. business and will be sharing the details of our plan to accelerate home market growth with all of our franchisees in early September.  In addition, the Burger King international business had another strong quarter, posting an impressive 18% comparable sales and 28% system-wide sales growth. Meanwhile, the Popeyes' team has been successful delivering strong unit growth and at Firehouse Subs, the team is focused on building the capabilities to execute on our vision of rapid growth for this loved brand in the U.S. and around the world," continued Cil.         

War in Ukraine

Burger King is the only RBI brand with restaurants in Russia, all of which are operated under a master franchise arrangement. While operations continue, RBI says, that funds received from franchised operations in Russia of approximately $1 million were donated to the UNHCR to support humanitarian aid for Ukrainian refugees.

Results from the franchised restaurants in Russia are included within reported key business metrics. During the second quarter, these restaurants had an estimated $11 million, or 2.0%, negative impact on the year-over-year organic adjusted EBITDA growth.

 

 

About Restaurant Brands International Inc.

Restaurant Brands International Inc. is one of the world's largest quick service restaurant companies with over $35 billion in annual system-wide sales and over 29,000 restaurants in more than 100 countries. As of June 30, Restaurant Brands International had 29,747 restaurants systemwide in more than 100 countries under the brands Burger King (19,311 units), Firehouse Subs (1,233), Popeyes Louisiana Kitchen (3,851) and Tim Hortons (5,352).

 

 

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