TORONTO, Oct. 14, 2020 /PRNewswire/ - Restaurant
Brands International Inc. ("RBI") (TSX: QSR) (NYSE: QSR) (TSX:
QSP), announced today preliminary selected third quarter 2020
financial results.
Preliminary Third Quarter 2020 Highlights:
Operational
Metrics:
|
Three Months Ended
September 30,
|
|
2020
|
2019
|
|
(Unaudited)
|
System-wide Sales
Growth
|
|
|
Consolidated
|
(5.4)%
|
8.9%
|
Comparable
Sales
|
|
|
TH
- Canada
|
(13.7)%
|
(1.2)%
|
TH
– Rest of World
|
(3.6)%
|
(2.7)%
|
TH
- Global
|
(12.5)%
|
(1.4)%
|
|
|
|
BK
– US
|
(3.2)%
|
5.0%
|
BK
– Rest of World
|
(10.3)%
|
4.7%
|
BK
- Global
|
(7.0)%
|
4.8%
|
|
|
|
PLK- US
|
19.7%
|
10.2%
|
PLK – Rest of World
|
(0.3)%
|
6.3%
|
PLK – Global
|
17.4%
|
9.7%
|
|
Note: System-wide
sales growth and comparable sales are calculated on a constant
currency basis and include sales at franchise restaurants and
company-owned restaurants. System-wide sales are driven by sales at
franchise restaurants, as approximately 100% of current restaurants
are franchised. We do not record franchise sales as revenues;
however, our franchise revenues include royalties based on a
percentage of franchise sales. Additionally, if a restaurant is
closed for a significant portion of a month, the restaurant is
excluded from the monthly comparable sales calculation.
|
Additionally, RBI expects to report (in millions except %):
- Revenues between $1,320 and
$1,340, including approximately
$10 million of unfavorable FX leading
to organic growth over prior year of between negative 7% and
9%
- Adjusted EBITDA between $555 and
$565, including approximately
$5 million of unfavorable FX, leading
to organic growth over prior year of between negative 5% and
7%
- 96% of system-wide restaurants open at the end of
September
The preliminary financial information included in this release
is subject to completion of RBI's quarter-end close procedures and
further financial review. These estimates are preliminary,
unaudited and are inherently uncertain. During the course of the
preparation of our condensed consolidated financial statements and
related notes, and completion of our financial close and review
procedures for the three and nine months ended September 30, 2020, adjustments to the
preliminary estimates may be identified, and such adjustments may
be material. In addition, other developments may arise between now
and the time the financial statements for the three and nine months
ended September 30, 2020 are
finalized. These preliminary estimates should not be viewed as a
substitute for full interim financial statements prepared in
accordance with GAAP, and they should not be viewed as indicative
of our results for any future period. Actual results for the three
and nine months ended September 30,
2020 and future periods could differ materially from the
estimates, trends and expectations discussed above.
Key Operating Metrics:
We evaluate our restaurants and assess our business based on the
following operating metrics. System-wide sales growth refers to the
percentage change in sales at all franchise and company-owned
restaurants in one period from the same period in the prior year.
Comparable sales refers to the percentage change in restaurant
sales in one period from the same prior year period for restaurants
that have been open for 13 months or longer for TH and BK and 17
months or longer for PLK. Additionally, if a restaurant is closed
for a significant portion of a month, the restaurant is excluded
from the monthly comparable sales calculation. System-wide sales
growth and comparable sales are measured on a constant currency
basis, which means that results exclude the effect of foreign
currency translation and are calculated by translating prior year
results at current year monthly average exchange rates. We analyze
key operating metrics on a constant currency basis as this helps
identify underlying business trends, without distortion from the
effects of currency movements. System-wide sales represent sales at
all franchise restaurants and company-owned restaurants. We do not
record franchise sales as revenues; however, our franchise revenues
include royalties based on a percentage of franchise sales.
Non-GAAP Measures:
The preliminary results in this press release include Adjusted
EBITDA which is a non-GAAP measure. Adjusted EBITDA is defined as
earnings (net income or loss) before interest expense, net, (gain)
loss on early extinguishment of debt, income tax (benefit) expense,
and depreciation and amortization and is used by management to
measure operating performance of the business excluding (i) the
non-cash impact of share-based compensation and non-cash incentive
compensation expense, (ii) (income) loss from equity method
investments, net of cash distributions received from equity method
investments, (iii) other operating expenses (income), net, and (iv)
income or expense from non-recurring projects and non-operating
activities. For the periods referenced, this included costs
incurred in connection with the centralization and relocation of
our Canadian and U.S. restaurant support centers to new offices in
Toronto, Ontario, and Miami, Florida, respectively and corporate
restructuring and related tax advisory fees, including those
arising as a result of the adoption of the Tax Cuts and Jobs Act
(the "Tax Act") and the implementing regulations thereunder.
Management believes that these types of expenses are either not
related to our underlying profitability drivers or not likely to
re-occur in the foreseeable future and the varied timing, size and
nature of these projects may cause volatility in our results
unrelated to the performance of our core business that does not
reflect trends of our core operations. Adjusted EBITDA is used by
management to measure operating performance of the business,
excluding these non-cash and other specifically identified items
that management believes are not relevant to management's
assessment of our operating performance. Adjusted EBITDA, as
defined above, also represents our measure of segment income for
each of our three operating segments.
There are important components of net income, including income
tax provision, that are currently in process of determination.
Therefore, a reconciliation of the range of Adjusted EBITDA to net
income cannot be provided at this time. A full reconciliation of
Adjusted EBITDA to net income will be provided when actual results
are released.
About Restaurant Brands International
Restaurant Brands International Inc. is one of the world's
largest quick service restaurant companies with approximately
$32 billion in annual system-wide
sales and 27,000 restaurants in more than 100 countries and U.S.
territories. RBI owns three of the world's most prominent and
iconic quick service restaurant brands - TIM HORTONS®, BURGER
KING®, and POPEYES®. These independently
operated brands have been serving their respective guests,
franchisees and communities for over 45 years.
Forward-Looking Statements
This press release includes forward-looking statements, which
are often identified by the words "may," "might," "believes,"
"thinks," "anticipates," "plans," "expects," "intends" or similar
expressions and reflect management's expectations regarding future
events and operating performance and speak only as of the date
hereof. These forward-looking statements include statements about
RBI's expectations regarding its performance and operations and
other anticipated future events and expectations. The factors that
could cause actual results to differ materially from RBI's
expectations are detailed in filings of RBI with the U.S.
Securities and Exchange Commission and on SEDAR in Canada, such as its annual and quarterly
reports and current reports on Form 8-K, and include the following:
risks related to adverse economic and industry conditions and risks
related to unforeseen events, such as adverse weather conditions,
natural disasters, terrorist attacks or threats, pandemics,
including coronavirus (COVID-19), or other catastrophic events, the
length and scope of the impact of the pandemic, including stay at
home orders and business closures, risks related to adverse
economic and industry conditions and their effect on franchisees,
supplier and distributors, risks related to the Company's
substantial indebtedness, risks related to its international
operations, risks related to the availability and cost of capital,
risks related to the Company's ability to compete domestically and
internationally in an intensely competitive industry, risks related
to technology, and changes in applicable laws, including tax laws
or interpretations thereof. all of which could adversely affect its
financial condition and prevent it from fulfilling its obligations.
RBI undertakes no obligation to update forward-looking statements
to reflect events or circumstances after the date hereof.
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SOURCE Restaurant Brands International Inc.