Table of Contents :
• Stock Rating & Target Price
• Investment Thesis
• Fundamental Models Used
• Company Description
• Corporate Timeline
• Key Metrics (KPI ) and Recently Reported Earnings Review
• Business Highlights, Strategic Announcements & Outlook
• Quarter-over-Quarter (Q-o-Q) and Year-over-Year (Y-o-Y) Growth Analysis
• Key Catalysts Driving Growth
• Historical Financial Statement Analysis & CAGR Trends
• Quarterly Key Financial Ratios and Performance Metrics
• Annual Financial Performance Analysis: Horizontal and Vertical Financial Analysis, Trends
• Financial Forecasts
• Annual Forecasts: Income Statement
• Annual Forecasts: Cash Flow Statements
• Net Debt Levels
• A Closer Look at DCF: Our Assumptions and Methodology
• Terminal Value Calculation
• Target Price Analysis
• Valuation Multiples
• Supplementary Valuation Analysis: Multiples Approach
• Scenario/Sensitivity Analysis – Base Case , Bull Case ,Bear Case
• Holistic Peer Review & Trading Comps: Financial Data, Operational Metrics, and Valuation Multiples
• Implied Price Per Share
• Ownership Activity/ Insider Trades
• Ownership Summary
• An analysis of ESG Risk Rating
• Key Professionals
• Key Board Members
• Key Risks Considerations
• Analyst Ratings
• Analyst Industry Views
• Disclosures
Restaurant Brands International: Systematic struggles persist— What’s the LT Impact, Outlook, & Strategic Levers for Growth?
Restaurant Brands International (RBI) delivered mixed Q3 2024 results, reflecting resilience amid macroeconomic challenges but highlighting areas for improvement. Revenue of $2.29 billion missed expectations by $63.84M, while adjusted EPS of $0.93 fell short by $0.02, despite achieving 6.1% organic AOI growth and disciplined cost controls, including an 11% decline in G&A expenses. Tim Hortons led performance with 2.7% comparable sales growth driven by food and beverage innovation, including cold beverages now accounting for 43% of sales. Burger King International posted 7.6% net restaurant growth, with standout markets like Japan and Spain, while the U.S. segment showed signs of sequential improvement with October's Addams Family meal promotion. Popeyes U.S. saw traffic recover following value-focused offerings like the $6 Big Box. RBI’s "Reclaim the Flame" initiative drove mid-teens sales uplifts for remodeled Burger King locations, with plans to modernize 90% of stores by 2028. Digital penetration reached 20% of U.S. Burger King sales and 28% at Popeyes, bolstering engagement and operational efficiency. While near-term headwinds, including softness in China and U.S. value competition, persist, RBI’s focus on international expansion, high-return remodels, and digital growth underpins its long-term targets of 3%+ comps, 5%+ net restaurant growth, and 8%+ AOI CAGR. Can RBI’s strategic investments in remodeling, digital growth, and international markets offset near-term challenges and sustain its long-term profitability targets?
