Restaurant Brands beats by $0.06, beats on revenue
Jul 27 2015, 07:05 ET | About: Restaurant Brands Inter... (QSR) | By: Niloofer Shaikh, SA News Editor
Restaurant Brands (NYSE:QSR): Q2 EPS of $0.30 beats by $0.06.
Revenue of $1.04B (-1.9% Y/Y) beats by $20M.
Press Release
http://seekingalpha.com/news/2657705-restaurant-brands-beats-by-0_06-beats-on-revenue?uprof=45#email_link
Restaurant Brands International Reports Second Quarter 2015 Results
Mon July 27, 2015 7:00 AM|PR Newswire | About: QSR
OAKVILLE, ON, July 27, 2015 /PRNewswire/ - Restaurant Brands International Inc. (QSR) today reported financial results for the second quarter ended June 30, 2015.
Daniel Schwartz, Chief Executive Officer of Restaurant Brands International (RBI) commented, "We are pleased to report another quarter of solid results for both of our iconic brands, TIM HORTONS ® and BURGER KING®. The continued expansion of our global footprint combined with effective marketing and successful product launches drove system-wide sales growth. We believe our focus on enhancing our guest experience and increasing franchisee profitability will continue to create value for all of our stakeholdersour guests, franchisees, employees and shareholdersin the second half of the year."
Second Quarter 2015 Highlights:
• Tim Hortons (TH) comparable sales increased 5.5% and Burger King (BK) comparable sales increased 6.7% in constant currency
•TH delivered net restaurant growth ("NRG") of 52 and BK delivered NRG of 141
•System-wide sales grew 8.4% at TH and 11.6% at BK in constant currency
•RBI Adjusted EBITDA was up 19.1% on an organic basis to $427 million versus the prior year pro forma amount
•RBI Adjusted Diluted EPS was $0.30 per share
•RBI declared a dividend of $0.12 per common share and partnership exchangeable unit of RBI LP for the third quarter of 2015
Consolidated Operational Highlights
Three Months Ended June 30,
2015
2014
(unaudited)
Comparable Sales Growth(1)
TH (2)
5.5%
2.8%
BK
6.7%
0.9%
System Net Restaurant Growth (NRG)
TH (2)
52
22
BK
141
131
System-wide Sales Growth(1)
TH (2)
8.4%
6.5%
BK
11.6%
5.4%
System-wide Sales (3)(in US$ millions)
TH (2)
$ 1,657.6
$ 1,702.0
BK
$ 4,406.1
$ 4,292.9
(1)
Comparable sales growth and system-wide sales growth are calculated on a constant currency basis and include sales at franchise restaurants and company-owned restaurants.
(2)
TH 2014 second quarter figures are shown for informational purposes only.
(3)
System-wide sales are driven by sales at franchised restaurants, as approximately 100% of current restaurants are franchised. We do not record franchise sales as revenue; however, our franchise revenues include royalties based on a percentage of franchise sales.
Consolidated Financial Highlights
Three Months Ended June 30,
(in US$ millions, except per share data)
2015
2014
2014 PF (6)
(unaudited)
RBI Total Revenues
$ 1,041.4
$ 261.2
$ 1,058.7
RBI Net Income (Loss) Attributable to
$ 9.6
$ 75.1
$ 31.3
Common Shareholders
RBI Diluted Earnings (Loss) per Share
$ 0.05
$ 0.21
$ 0.15
Attributable to Common Shareholders
TH Adjusted EBITDA (4)
$ 234.3
n/a
$ 215.2
BK Adjusted EBITDA (4)
$ 192.9
$ 182.8
$ 182.8
RBI Adjusted EBITDA (5)
$ 427.2
$ 182.8
$ 398.0
RBI Adjusted Net Income (Loss) Attributable
to Common Shareholders (5)
$ 142.7
$ 93.2
$ 112.1
RBI Adjusted Diluted Earnings (Loss) per Share
Attributable to Common Shareholders (5)
$ 0.30
$ 0.26
$ 0.24
(4)
TH Adjusted EBITDA and BK Adjusted EBITDA are our measures of segment profitability.
(5)
RBI Adjusted EBITDA, RBI Adjusted Net Income (Loss), and RBI Adjusted Diluted Earnings (Loss) per Share are non-GAAP financial measures. Please refer to "Non-GAAP Financial Measures" for further detail.
(6)
Please refer to RBI's Form 8-K filed on April 27, 2015 with pro forma financial information for RBI, TH and BK.
Consistent execution of brand-specific strategic initiatives drove RBI outperformance in the second quarter. TH trailing twelve month NRG of 230 along with comparable sales growth of 5.5% drove TH system-wide sales growth of 8.4%. Strength in Dark Roast coffee and the CREAMY CHOCOLATE CHILL" beverage as well as growth in the lunch daypart contributed to TH outperformance. At BK, trailing twelve month NRG of 720 in conjunction with second quarter comparable sales growth of 6.7% led to BK system-wide sales growth of 11.6%. BK comparable sales growth was largely driven by innovative product launches including the A.1.® Hearty Mozzarella Bacon Cheeseburger, Extra Long Pulled Pork Sandwich and Chicken Fries.
TH Segment Results (2)
Three Months Ended June 30,
(in US$ millions)
2015
2014
2014 PF (6)
(unaudited)
Comparable Sales Growth (1)
5.5%
2.8%
2.8%
System-wide Sales Growth (1)
8.4%
6.5%
6.5%
System-wide Sales (3)
$ 1,657.6
$ 1,702.0
$ 1,702.0
System Net Restaurant Growth (NRG)
52
22
22
System Restaurant Count at Period End
4,776
4,546
4,546
Sales
$ 539.0
n/a
$ 563.1
Franchise and Property Revenues
$ 224.2
n/a
$ 234.4
TH Total Revenues
$ 763.2
n/a
$ 797.5
Cost of Sales
$ 450.9
n/a
$ 480.0
Franchise & Property Expenses
$ 92.5
n/a
$ 103.0
Segment SG&A (7)
$ 23.1
n/a
$ 41.6
Segment depreciation and amortization (8)
$ 34.9
n/a
$ 38.6
TH Adjusted EBITDA (4) (9)
$ 234.3
n/a
$ 215.2
(7)
Segment selling, general and administrative expenses consists of segment selling expenses and segment management general and administrative expenses.
(8)
Segment depreciation and amortization consists of depreciation and amortization included in cost of sales and franchise and property expenses.
(9)
TH Adjusted EBITDA for the three months ended June 30, 2015 excludes $(1.0) million of acquisition accounting impact on cost of sales and includes $3.7 million of cash distributions received from equity method investments. TH pro forma Adjusted EBITDA for the three months ended June 30, 2014 includes $3.7 million of cash distributions received from equity method investments.
Comparable sales growth and NRG for the trailing twelve month period contributed to TH system-wide sales growth of 8.4% in the second quarter. TH comparable sales grew 5.5%, with comparable sales growth for TH Canada and TH U.S. markets at 5.4% and 7.0%, respectively.
TH added 52 net new restaurants to end the quarter with 4,776 restaurants. For the trailing twelve month period, TH increased its restaurant base by 230 restaurants, or 5.1%. TH Total Revenues declined 4.3% versus the prior year pro forma amount to $763.2 million, primarily as a result of FX headwinds. Excluding the impact of FX movements, TH Total Revenues increased 7.9% compared to prior year pro forma results. Year-over-year, TH Adjusted EBITDA grew 22.8% on an organic basis (excluding the impact of FX movements) as a result of top-line growth, operating leverage and cost discipline.
BK Segment Results
Three Months Ended June 30,
(in US$ millions)
2015
2014
(unaudited)
Comparable Sales Growth (1)
6.7%
0.9%
System-wide Sales Growth (1)
11.6%
5.4%
System-wide Sales(3)
$ 4,406.1
$ 4,292.9
System Net Restaurant Growth (NRG)
141
131
System Restaurant Count at Period End
14,528
13,808
Sales
$ 28.8
$ 18.3
Franchise and Property Revenues
$ 249.4
$ 242.9
BK Total Revenues
$ 278.2
$ 261.2
Cost of Sales
$ 25.0
$ 15.7
Franchise & Property Expenses
$ 33.1
$ 35.7
Segment SG&A (7)
$ 39.2
$ 39.4
Segment depreciation and amortization (8)
$ 12.0
$ 12.4
BK Adjusted EBITDA (4)
$ 192.9
$ 182.8
Comparable sales growth and acceleration of net restaurant openings at BK helped drive system-wide sales growth of 11.6%. BK achieved comparable sales growth of 6.7% with positive same-store sales in all markets. U.S. and Canada and Latin America and the Caribbean notably outperformed with comparable sales growth of 7.9% and 8.5%, respectively. BK top-line growth was largely attributable to comparable sales growth and the addition of 720 net new restaurants for the trailing twelve month period. With 141 net new restaurants added in the second quarter, BK ended the period with 14,528 restaurants.
BK experienced a 6.4% FX headwind to revenues for the second quarter. Excluding the impact of FX movements, BK Total Revenues grew by 13.7% to $278.2 million versus prior year. Compared to the second quarter 2014, BK Adjusted EBITDA increased 14.7% on an organic basis.
More...
http://seekingalpha.com/pr/14198835-restaurant-brands-international-reports-second-quarter-2015-results
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