Consolidated system-wide sales grow 8.1% year-over-yearGlobal comparable sales of 4.6% driven by 7.5% at TH Canada, 4.2% at BK International, 3.9% at BK US and 6.2% at PLK USSolid growth in system-wide sales translates into bottom-line growth for franchisees and the Company $300 million expanded remodel program at BK US puts business on path to reach 85% to 90% modern image by 2028 TORONTO, April 30, 2024 /CNW/ - Restaurant Brands International Inc. ("RBI") (TSX:QSR) (NYSE:QSR) (TSX:QSP) today reported financial results for the first quarter ended March 31, 2024. Josh Kobza, Chief Executive Officer of RBI commented, "I am proud of the hard work our teams and franchisees are doing to deliver high-quality products, great service and a compelling value proposition for guests every day. Our results are a reflection of their efforts and the strong foundation we have built that sets us up to drive continued improvements in franchisee profitability and deliver our long-term outlook." First Quarter 2024 Highlights: Consolidated comparable sales increased 4.6% and net restaurants grew 3.9% versus the prior year System-wide sales increased 8.1% year-over-year Income from Operations of $544 million versus $447 million in the prior year Net Income of $328 million versus $277 million in prior year Diluted EPS was $0.72 versus $0.61 in prior year Adjusted Operating Income of $540 million increased 7.7% organically versus the prior year Adjusted Diluted EPS of $0.73 decreased (0.9)% organically versus the prior year Consolidated Operational Highlights Three Months Ended March 31, 2024 2023 (Unaudited) System-wide Sales Growth     TH 7.8 % 16.1 %     BK 2.6 % 8.5 %     PLK 10.4 % 9.6 %     FHS 4.3 % 8.7 %  INTL 11.6 % 21.6 % Consolidated 8.1 % 14.7 % System-wide Sales (in US$ millions)     TH $ 1,725 $ 1,596     BK $ 2,753 $ 2,684     PLK $ 1,517 $ 1,374     FHS $ 301 $ 289     INTL $ 4,216 $ 3,889 Consolidated $ 10,512 $ 9,832 Comparable Sales     TH 6.9 % 14.9 %     BK 3.8 % 8.7 %     PLK 5.7 % 3.6 %     FHS 0.3 % 6.2 %     INTL 4.2 % 12.6 % Consolidated 4.6 % 10.3 % Net Restaurant Growth     TH — % (0.9) %     BK (2.4) % (1.3) %     PLK 4.7 % 6.3 %     FHS 3.6 % 2.2 %     INTL 8.4 % 8.9 % Consolidated 3.9 % 4.2 % System Restaurant Count at Period End     TH 4,505 4,507     BK 7,139 7,317     PLK 3,412 3,260     FHS 1,277 1,233     INTL 14,780 13,639 Consolidated 31,113 29,956 Consolidated Financial Highlights Three Months Ended March 31, (in US$ millions, except per share data) 2024 2023 (Unaudited) Total Revenues $ 1,739 $ 1,590 Income from Operations $ 544 $ 447 Net Income $ 328 $ 277 Diluted Earnings per Share $ 0.72 $ 0.61 TH $ 224 $ 212 BK $ 106 $ 96 PLK $ 58 $ 51 FHS $ 10 $ 9 INTL $ 142 $ 137 Adjusted Operating Income (a) $ 540 $ 505 Adjusted EBITDA (a) $ 627 $ 588 Adjusted Net Income (a) $ 331 $ 340 Adjusted Diluted Earnings per Share (a) $ 0.73 $ 0.75   Three Months Ended March 31, (in US$ millions, unaudited) 2024 2023 (Unaudited) Net cash provided by operating activities $ 148 $ 95 Net cash (used for) provided by investing activities $ (31) $ — Net cash (used for) provided by financing activities $ (203) $ (240) Free Cash Flow (a) $ 122 $ 77 Net Debt (a) $ 12,318 $ 12,331 Net Income Net Leverage (b) 7.0x 8.3x Adjusted EBITDA Net Leverage (a) 4.8x 5.1x (a) Adjusted Operating Income, Adjusted EBITDA, Adjusted Net Income, Adjusted Diluted Earnings per Share, Free Cash Flow, Net Debt, and Adjusted EBITDA Net Leverage are non-GAAP financial measures. Please refer to "Non-GAAP Financial Measures" for further detail. (b) Net Income Net Leverage is defined as net debt (total debt less cash and cash equivalents) divided by Net Income. We have five operating segments: Tim Hortons (TH), Burger King (BK), Popeyes Louisiana Kitchen (PLK), Firehouse Subs (FHS) and International (INTL). The year-over-year increases in Total Revenues on an as reported and on an organic basis were primarily driven by increases in system-wide sales in all our segments. On an as reported basis, INTL was impacted by an unfavorable FX Impact, partially offset by a favorable FX Impact at TH. The year-over-year increase in Income from Operations was primarily driven by increases in segment income in all of our segments, a favorable change from other operating expenses (income), net, the non-recurrence of FHS Transaction costs and a favorable change from the impact of equity method investments, partially offset by an unfavorable FX Impact and CRG Transaction costs.  The increase in Net Income was primarily driven by the year-over-year increase in Income from Operations, partially offset by an increase in income taxes and interest expense, net. The year-over-year increases in Adjusted Operating Income on an as reported and on an organic basis were primarily driven by increases in segment income in all of our segments. On an as reported basis, INTL was impacted by an unfavorable FX Impact, partially offset by a favorable FX Impact at TH. The year-over-year decrease in Adjusted Net Income was primarily driven by an increase in adjusted income tax expense, an increase in adjusted interest expense and unfavorable FX movements, partially offset by increases in segment income in all of our segments. Burger King US Reclaim the Flame In September 2022, Burger King shared the details of its "Reclaim the Flame" plan to accelerate sales growth and drive franchisee profitability. We will be investing $400 million over the life of the plan, comprised of $150 million in advertising and digital investments ("Fuel the Flame") and $250 million in high-quality remodels and relocations, restaurant technology, kitchen equipment, and building enhancements ("Royal Reset"). During the three months ended March 31, 2024, we funded $6 million toward the Fuel the Flame investments, including $5 million toward our support behind the Burger King US advertising fund, and $19 million toward our Royal Reset investments, including $9 million toward remodels. As of March 31, 2024, we have funded a total of $79 million toward the Fuel the Flame investments and $81 million toward our Royal Reset investments. On April 30, 2024, Burger King announced plans to extend its Long-Term Royal Reset program with plans to invest an additional $300 million in remodels from 2025 through 2028. Through the initial Reclaim the Flame investment, plans to remodel 600 Carrols Restaurant Group restaurants and this extended remodel program, Burger King will be on a path to achieve its goal of 85% to 90% modern image by 2028.   TH Segment Results  Three Months Ended March 31, (in US$ millions) 2024 2023 (Unaudited) System-wide Sales Growth 7.8 % 16.1 % System-wide Sales $ 1,725 $ 1,596 Comparable Sales 6.9 % 14.9 % Net Restaurant Growth — % (0.9) % System Restaurant Count at Period End 4,505 4,507 Sales $ 637 $ 618 Franchise and Property Revenues $ 231 $ 213 Advertising Revenues and Other Services $ 70 $ 62 Total Revenues $ 939 $ 893 Cost of Sales $ 526 $ 505 Franchise and Property Expenses $ 81 $ 79 Advertising Expenses and Other Services $ 70 $ 65 Segment G&A $ 42 $ 37 Adjustments: Franchise Agreement Amortization $ 2 $ 2 Cash Distributions Received from Equity Method Investments $ 3 $ 3 Adjusted Operating Income $ 224 $ 212 Share-based Compensation and Non-Cash Incentive Compensation Expense $ 12 $ 12 Depreciation and Amortization, excluding Franchise Agreement Amortization $ 26 $ 25 Adjusted EBITDA (a) $ 262 $ 248 (a) Adjusted EBITDA for TH is a non-GAAP financial measure. Please refer to "Non-GAAP Financial Measures" for further detail. For the first quarter of 2024, the increase in system-wide sales was primarily driven by comparable sales of 6.9%, including Canada comparable sales of 7.5%. The year-over-year increases in Total Revenues on an as reported and on an organic basis were primarily driven by an increase in system-wide sales as well as an increase in supply chain sales and increases in equipment sales, partially offset by a decrease in consumer packaged goods sales as a result of increased promotional activity and trade investments. The increase in Total Revenues on an as reported basis benefited from a slight favorable FX Impact. The year-over-year increase in Adjusted Operating Income on an as reported and on an organic basis was primarily driven by the increase in system-wide sales and advertising expenses and other services exceeding advertising revenues and other services in the prior year period as compared to being comparable in the current year period, partially offset by an increase in Segment G&A and supply chain bad debt expense associated with sales of coffee to certain international franchisees. The increase in Segment G&A was primarily driven by higher compensation-related expenses and an increase in professional fees. The increase in Adjusted Operating Income on an as reported basis also benefited from a slight favorable FX Impact.   BK Segment Results Three Months Ended March 31, (in US$ millions) 2024 2023 (Unaudited) System-wide Sales Growth 2.6 % 8.5 % System-wide Sales $ 2,753 $ 2,684 Comparable Sales 3.8 % 8.7 % Net Restaurant Growth (2.4) % (1.3) % System Restaurant Count at Period End 7,139 7,317 Sales $ 58 $ 19 Franchise and Property Revenues $ 175 $ 172 Advertising Revenues and Other Services $ 117 $ 106 Total Revenues $ 350 $ 297 Cost of Sales $ 52 $ 17 Franchise and Property Expenses $ 33 $ 36 Advertising Expenses and Other Services $ 125 $ 117 Segment G&A $ 36 $ 34 Adjustments: Franchise Agreement Amortization $ 2 $ 3 Adjusted Operating Income $ 106 $ 96 Share-based Compensation and Non-Cash Incentive Compensation Expense $ 10 $ 10 Depreciation and Amortization, excluding Franchise Agreement Amortization $ 9 $ 9 Adjusted EBITDA (a) $ 125 $ 115 (a) Adjusted EBITDA for BK is a non-GAAP financial measure. Please refer to "Non-GAAP Financial Measures" for further detail. For the first quarter of 2024, the increase in system-wide sales was driven by comparable sales of 3.8%, including US comparable sales of 3.9%, partially offset by net restaurant growth of (2.4)%. The year-over-year increase in Total Revenues was primarily driven by an increase in sales from Company restaurants and increases in advertising fund contributions from vendors and franchisees. Sales and Cost of Sales in the current year quarter were impacted by the acquisition of 89 Company restaurants in the fourth quarter of 2023 and 38 additional Company restaurants on January 16, 2024. As of March 31, 2024, BK owned and operated 175 Company restaurants. The year-over-year increase in Adjusted Operating Income was primarily driven by the increase in system-wide sales, impact of Company restaurant acquisitions, bad debt recoveries in the current year period compared to bad debt expense in the prior year period, and advertising expenses and other services exceeding advertising revenues and other services in the current period to a lesser extent than in the prior year period, partially offset by a slight increase in Segment G&A. PLK Segment Results Three Months Ended March 31, (in US$ millions) 2024 2023 (Unaudited) System-wide Sales Growth 10.4 % 9.6 % System-wide Sales $ 1,517 $ 1,374 Comparable Sales 5.7 % 3.6 % Net Restaurant Growth 4.7 % 6.3 % System Restaurant Count at Period End 3,412 3,260 Sales $ 23 $ 21 Franchise and Property Revenues $ 80 $ 73 Advertising Revenues and Other Services $ 75 $ 66 Total Revenues $ 178 $ 159 Cost of Sales $ 19 $ 19 Franchise and Property Expenses $ 2 $ 2 Advertising Expenses and Other Services $ 76 $ 67 Segment G&A $ 22 $ 21 Adjustments: Franchise Agreement Amortization $ 1 $ 1 Adjusted Operating Income $ 58 $ 51 Share-based Compensation and Non-Cash Incentive Compensation Expense $ 7 $ 6 Depreciation and Amortization, excluding Franchise Agreement Amortization $ 2 $ 2 Adjusted EBITDA (a) $ 67 $ 59 (a) Adjusted EBITDA for PLK is a non-GAAP financial measure. Please refer to "Non-GAAP Financial Measures" for further detail. For the first quarter of 2024, the increase in system-wide sales was driven by comparable sales of 5.7%, including US comparable sales of 6.2%, and net restaurant growth of 4.7%. The year-over-year increases in Total Revenues and Adjusted Operating Income were primarily driven by the increase in system-wide sales and, to a lesser extent, an increase in Company restaurant sales and profitability. FHS Segment Results Three Months Ended March 31, (in US$ millions) 2024 2023 (Unaudited) System-wide Sales Growth 4.3 % 8.7 % System-wide Sales $ 301 $ 289 Comparable Sales 0.3 % 6.2 % Net Restaurant Growth 3.6 % 2.2 % System Restaurant Count at Period End 1,277 1,233 Sales $ 10 $ 10 Franchise and Property Revenues $ 25 $ 23 Advertising Revenues and Other Services $ 15 $ 4 Total Revenues $ 50 $ 37 Cost of Sales $ 9 $ 8 Franchise and Property Expenses $ 2 $ 2 Advertising Expenses and Other Services $ 15 $ 5 Segment G&A $ 14 $ 13 Adjusted Operating Income $ 10 $ 9 Share-based Compensation and Non-Cash Incentive Compensation Expense $ 3 $ 3 Depreciation and Amortization, excluding Franchise Agreement Amortization $ 1 $ 1 Adjusted EBITDA (a) $ 14 $ 13 (a) Adjusted EBITDA for FHS is a non-GAAP financial measure. Please refer to "Non-GAAP Financial Measures" for further detail. For the first quarter of 2024, the increase in system-wide sales was driven by net restaurant growth of 3.6% and relatively flat comparable sales of 0.3%. The year-over-year increase in Total Revenues was primarily driven by an increase in Advertising Revenues and Other Services reflecting the modification of FHS' Advertising fund arrangements to be more consistent with those of our other brands.  The year-over-year increase in Adjusted Operating Income was primarily driven by the increase in system-wide sales, partially offset by modest increases in Cost of Sales and Segment G&A.   INTL Segment Results Three Months Ended March 31, (in US$ millions) 2024 2023 (Unaudited) System-wide Sales Growth 11.6 % 21.6 % System-wide Sales $ 4,216 $ 3,889 Comparable Sales 4.2 % 12.6 % Net Restaurant Growth 8.4 % 8.9 % System Restaurant Count at Period End 14,780 13,639 Sales $ — $ — Franchise and Property Revenues $ 201 $ 187 Advertising Revenues and Other Services $ 21 $ 16 Total Revenues $ 222 $ 203 Cost of Sales $