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OAKVILLE, ON, April 24, 2018 /CNW/ - Restaurant Brands International Inc. (TSX/NYSE: QSR, TSX: QSP) today reported financial results for the first quarter ended March 31, 2018.

Daniel Schwartz, Chief Executive Officer of Restaurant Brands International Inc. ("RBI") commented, "During the first quarter, we continued to grow system-wide sales for each of our three iconic brands, and we have developed strong plans with our partners to further accelerate growth for the long term. At TIM HORTONS®, though results were soft, we have high conviction that our 'Winning Together' plan unveiled today will improve guest experience and drive sales and profitability for our restaurant owners. For BURGER KING®, we built upon our recent sales momentum and further accelerated our net restaurant growth. At POPEYES®, we improved comparable sales in the US, and announced our first international development agreement for the brand in Brazil. We continue to see a lot of growth potential for each of our three brands, and through our focus on enhancing guest satisfaction and franchisee profitability, we believe that we will create value for all of our stakeholders for many years to come."

Consolidated Operational Highlights

  Three Months Ended March 31,
  2018   2017  
  (Unaudited)  
System-wide Sales Growth            
  TH   2.1%     3.3%  
  BK                                                      11.3%     6.2%  
  PLK   10.9%     6.1%  
System-wide sales (in US$ millions)            
  TH $ 1,607.7   $ 1,514.0  
  BK $ 5,148.9   $ 4,477.0  
  PLK $ 903.7   $ 835.8  
Comparable Sales            
  TH   (0.3)%     (0.1)%  
  BK   3.8%     (0.1)%  
  PLK   3.2%     (0.2)%  
Net Restaurant Growth            
  TH   2.8%     4.6%  
  BK   6.9%     5.1%  
  PLK   6.7%     5.8%  
System Restaurant Count at Period End            
  TH   4,774     4,644  
  BK   16,859     15,768  
  PLK   2,926     2,743  
 
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 franchised 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. For 2017, PLK figures are shown for informational purposes only.

Revenue Recognition Update

Effective January 1, 2018, we adopted the new revenue recognition accounting standard ("New Standard"). Our consolidated financial statements for 2018 reflect the application of the New Standard, while our consolidated financial statements for 2017 were prepared under the guidance of previously applicable accounting standards ("Previous Standards"). Our results presented herein indicate which revenue recognition methodology applies in each respective period.

The most significant changes of this adoption that affect comparability of our results of operations between 2018 and 2017 include a change in the timing of franchise fee revenue recognition and the reflection of advertising fund contributions and expenses. Under Previous Standards, we recognized franchise fees when we performed all material obligations and services, which generally occurred when franchised restaurants opened. Under the New Standard, we defer initial and renewal franchise fees and recognize this revenue over the term of the related franchise agreement. Under Previous Standards, we did not reflect advertising fund contributions or advertising fund expenditures in our Consolidated Statement of Operations, and temporary net differences between contributions and expenses were reflected as prepaid assets or accrued liabilities on our consolidated balance sheet. Under the New Standard, advertising fund contributions and expenditures for funds that we manage are reported on a gross basis in our Consolidated Statement of Operations.

The implementation of the New Standard also impacted our year-over-year results on a consolidated basis and for each segment as follows:

  • Total Revenues increased as a result of the inclusion of advertising fund contributions, partially offset by a reduction in franchise fee revenues
  • Selling, General, and Administrative Expenses increased as a result of the inclusion of advertising fund expenditures

Additionally, for the first quarter, year-over-year results were impacted by the inclusion of Popeyes in our 2018 results.

For year-over-year comparability purposes, we have included a reconciliation of 2018 results under Previous Standards and are calculating organic growth under Previous Standards for both periods presented. Additional details can be found in our Form 10-Q.

Consolidated Financial Highlights

  Three Months Ended March 31,
(in US$ millions, except per share data) 2018   2018   2017    
  New Standard   Previous Standards   Previous Standards    
  (Unaudited)
Total Revenues $ 1,253.8   $ 1,071.8   $ 1,000.6      
Net Income Attributable to Common Shareholders $ 147.8   $ 151.0   $ 50.2      
Net Income Attributable to Common Shareholders and Noncontrolling Interests $ 278.6   $ 284.7   $ 98.7      
Diluted Earnings per Share $ 0.59   $ 0.60   $ 0.21      
           
TH Adjusted EBITDA(1) $ 245.2   $ 250.5   $ 256.2      
BK Adjusted EBITDA(1) $ 214.1   $ 215.0   $ 187.1      
PLK Adjusted EBITDA(1) $ 38.5   $ 40.8   N/A    
Adjusted EBITDA(2) $ 497.8   $ 506.3   $ 443.3      
           
Adjusted Net Income(2) $ 313.3   $ 319.4   $ 170.6      
Adjusted Diluted Earnings per Share(2) $ 0.66   $ 0.67   $ 0.36      
   
(1) TH Adjusted EBITDA, BK Adjusted EBITDA and PLK Adjusted EBITDA are our measures of segment profitability.
(2) Adjusted EBITDA, Adjusted Net Income, and Adjusted Diluted Earnings per Share are non-GAAP financial measures. Please refer to "Non-GAAP Financial Measures" for further detail.

Under Previous Standards, Total Revenues for the first quarter grew primarily as a result of the inclusion of our PLK segment and system-wide sales growth at BK, as well as a favorable FX impact, partially offset by a decrease in supply chain related revenues at TH. Net Income Attributable to Common Shareholders for the quarter, under both Previous Standards and the New Standard, was driven by the inclusion of our PLK segment, growth in BK segment income, and the redemption of our preferred shares in 2017.

Under Previous Standards, Adjusted EBITDA for the quarter grew 5.0% on an organic basis versus prior year combined results (including Popeyes), driven primarily by an increase in revenues at BK and PLK, partially offset by a decrease in supply chain related revenues at TH.

TH Segment Results

  Three Months Ended March 31,
(in US$ millions) 2018   2017
  New Standard   Previous Standards
  (Unaudited)
System-wide Sales Growth   2.1%     3.3%
System-wide Sales $ 1,607.7   $ 1,514.0
Comparable Sales   (0.3)%     (0.1)%
           
Net Restaurant Growth   2.8%     4.6%
System Restaurant Count at Period End   4,774     4,644
           
Sales $ 508.3   $ 527.4
Franchise and Property Revenues $ 255.2   $ 206.2
Total Revenues $ 763.5   $ 733.6
           
Cost of Sales $ 395.9   $ 402.5
Franchise and Property Expenses $ 69.5   $ 77.7
Segment SG&A $ 82.3   $ 25.1
Segment Depreciation and Amortization $ 26.3   $ 25.1
Adjusted EBITDA(1)(3) $ 245.2   $ 256.2
   
(3) TH Adjusted EBITDA includes $3.1 million and $2.8 million of cash distributions received from equity method investments for the three months ended March 31, 2018 and 2017, respectively.

For the first quarter of 2018, system-wide sales growth was primarily driven by net restaurant growth of 2.8%. Comparable sales of (0.3)% was primarily driven by relatively flat Canada comparable sales.

Under Previous Standards, Total Revenues for the quarter declined (3.0)% ((6.8)% excluding the impact of FX movements) versus prior year, primarily reflecting a decrease in supply chain related revenues, partially offset by a favorable impact of FX movements.

Under Previous Standards, Adjusted EBITDA for the quarter declined (2.2)% ((6.1)% excluding the impact of FX movements) versus prior year, primarily as a result of a decrease in Total Revenues, partially offset by a favorable impact of FX movements.

BK Segment Results

  Three Months Ended March 31,
(in US$ millions) 2018   2017
  New Standard   Previous Standards
  (Unaudited)
System-wide Sales Growth   11.3%     6.2%
System-wide Sales $ 5,148.9   $ 4,477.0
Comparable Sales   3.8%     (0.1)%
         
Net Restaurant Growth   6.9%     5.1%
System Restaurant Count at Period End   16,859     15,768
           
Sales $ 18.7   $ 23.0
Franchise and Property Revenues $ 371.2   $ 244.0
Total Revenues $ 389.9   $ 267.0
           
Cost of Sales $ 16.4   $ 20.9
Franchise and Property Expenses $ 32.5   $ 33.3
Segment SG&A $ 140.3   $ 38.2
Segment Depreciation and Amortization $ 12.2   $ 12.5
Adjusted EBITDA(1)(4) $ 214.1   $ 187.1
   
(4) BK Adjusted EBITDA includes $1.2 million of cash distributions received from equity method investments for the three months ended March 31, 2018.

For the first quarter of 2018, system-wide sales growth was driven by net restaurant growth of 6.9% and comparable sales of 3.8%, which was primarily driven by US comparable sales of 4.2%.

Under Previous Standards, Total Revenues for the quarter grew 9.7% (6.6% excluding the impact of FX movements) versus prior year, reflecting growth in system-wide sales.

Under Previous Standards, Adjusted EBITDA for the quarter grew 14.9% (11.5% excluding the impact of FX movements) versus prior year, primarily as a result of an increase in Total Revenues.

PLK Segment Results

  Three Months Ended March 31,
(in US$ millions) 2018   2017
  New Standard   Previous Standard
  (Unaudited)
System-wide Sales Growth   10.9%     6.1%
System-wide Sales $ 903.7   $ 835.8
Comparable Sales   3.2%     (0.2)%
           
Net Restaurant Growth   6.7%     5.8%
System Restaurant Count at Period End   2,926     2,743
           
Sales $ 20.8     N/A
Franchise and Property Revenues $ 79.6     N/A
Total Revenues $ 100.4     N/A
         
Cost of Sales $ 16.8     N/A
Franchise and Property Expenses $ 2.4     N/A
Segment SG&A $ 45.4     N/A
Segment Depreciation and Amortization $ 2.7     N/A
Adjusted EBITDA(1) $ 38.5     N/A

For the first quarter of 2018, system-wide sales growth was driven by net restaurant growth of 6.7% and comparable sales of 3.2%, which was primarily driven by US comparable sales of 2.3%.

PLK revenues and segment income from the acquisition date of March 27, 2017 through March 31, 2017 were not material to our consolidated financial statements, and therefore were not included in our consolidated statement of operations for the three months ended March 31, 2017.

Cash and Liquidity

As of March 31, 2018, total debt was $12.3 billion, and net debt (total debt less cash and cash equivalents of $0.9 billion) was $11.4 billion. Effective January 1, 2018, we adopted new guidance related to hedge accounting, which amends hedge accounting recognition and presentation requirements. Most notably, under the new guidance for our net investment hedges, all components not related to spot remeasurements on the notional amount of these instruments are included in interest expense, net, whereas previously they were recorded in other comprehensive income. Additional details about this accounting standard can be found in our Form 10-Q.

On April 24, 2018, the RBI Board of Directors declared a dividend of $0.45 per common share and partnership exchangeable unit of Restaurant Brands International Limited Partnership for the second quarter of 2018. The dividend will be payable on July 3, 2018 to shareholders and unitholders of record at the close of business on May 15, 2018.

Investor Conference Call

We will host an investor conference call and webcast at 8:30 a.m. Eastern Time on Tuesday, April 24, 2018, to review financial results for the first quarter ended March 31, 2018. The earnings call will be broadcast live via our investor relations website at http://investor.rbi.com and a replay will be available for 30 days following the release. The dial-in number is (877) 317-6711 for U.S. callers, (866) 450-4696 for Canadian callers, and (412) 317-5475 for callers from other countries.

 
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OAKVILLE, ON, April 17, 2018 /CNW/ - Restaurant Brands International Inc. (TSX/NYSE: QSR, TSX: QSP) will release its first quarter 2018 financial results on Tuesday, April 24, 2018 and will host an investor conference call that morning at 8:30 a.m. Eastern Time.

The earnings call will be webcast on the company's investor relations website http://investor.rbi.com and a replay will be available for 30 days following the release. Investors may also access the conference call via the following dial-in numbers: (877) 317-6711 for U.S. callers, (866) 450-4696 for Canadian callers, and (412) 317-5475 for callers from other countries.

 
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VANCOUVER, BC (April 17, 2018) — It was a banner night for both Boulevard Kitchen & Oyster Bar and Chef Alex Chen yesterday when the downtown destination captured big wins in the Best Seafood and Best Upscale categories, while Chen was appointed Chef of the Year at the 2018 Vancouver Magazine Restaurant Awards.

Cementing its influential role in Vancouver’s culinary landscape, Boulevard unseated long-standing winners in both the Best Upscale and Best Seafood categories at the 29th annual edition of the Awards.

“This year it’s the second act of Boulevard Kitchen & Oyster Bar, Alex Chen’s temple to all things seafood in the Sutton Place Hotel, that the judges felt had found its groove four years after opening,” stated the magazine in its May 2018 awards issue. “ 'The combo of (Alex Chen and Roger Ma) may be the best in town’, noted one judge.”

Chen, who now adds Vancouver magazine’s ‘Chef of the Year’ title to his list of impressive accolades, led Team Canada to a top-10 finish at the 2013 edition of the prestigious Bocuse d’Or in Lyon, France, and won the 2015 and ’17 editions of the Gold Medal Plates BC regional culinary competitions as well as the 2018 Canadian Culinary Championships.

“Our judges lauded ‘the absolutely Herculean effort’ Chen has put forward since opening Boulevard … to move a very traditional hotel kitchen forward into fresh, exciting cooking that remains grounded in unyielding rigour, classical French technique and respect for history’,” stated the magazine. “He ‘effortlessly brings Asian sensibility, lightness and nuance to his menu in a subtle yet clear-eyed way that doesn’t feel foreign or intrusive’.”

In accepting his award on stage before a standing-room-only of BC’s culinary who’s who, Chen stated: “I dedicate this award not only to my family but to our back- and front-of-house staff both past and present and the various vendors we work with,” said Chen. “Without them I wouldn’t have the same motivation or desire to mentor and we couldn’t do what we do on a day-to-day basis. I am incredibly grateful for this recognition, but it is, as always, a team effort and I share this with the entire team at Boulevard.”

The Vancouver Magazine Restaurant Awards are judged by a panel of leading culinary experts and critics and handed out at a formal award show at the Sheraton Wall Centre in Vancouver. A full list of winners from the 2018 edition of the annual awards is available at www.vanmag.com.

For the latest news about Boulevard, register for the restaurant’s e-newsletter at www.boulevardvancouver.ca, become a fan of /blvdyvr on Facebook or follow @blvdyvr on Twitter and Instagram.

 
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April 16, 2018 – Vancouver, BC – Nothing says BC like White Spot! The BC born-and-raised restaurant chain is boldly laying claim to the official title of BC’s Own – reflecting a long-time commitment to supporting communities, farmers and suppliers across the province, from Vancouver Island to Northern BC, and just about every place in between. White Spot buys more locally-sourced ingredients than any other full-service chain restaurant in BC, another way White Spot is BC’s Own restaurant.

From playful, eye-catching billboards to stories about all the ways White Spot touches the lives of British Columbians, the restaurant’s biggest campaign to-date features real staff and guests, and connects with people of all ages. A 60-second, day-in-the-life of White Spot video can be viewed here, or downloaded here.

“At White Spot, we want everyone to feel at home,” says White Spot President Warren Erhart. “That includes long-time guests, and the thousands of people who come to our province every year. Our heritage is something that’s very much unique to White Spot. Since we opened in 1928, we’ve been making real connections with the people of BC, one Legendary burger at a time.”

“As the times change, so do we,” adds Cathy Tostenson, Vice President of Marketing & Menu Development. “We’re constantly reinventing our restaurant to stay exciting, modern, fresh and relevant, while staying true to our roots.

White Spot’s deep community ties inspired the tagline BC’s Own and set the tone for the campaign, which involved local creative agency One Twenty Three West and local media agency DSA Media.

“If you grew up in BC, you probably have fond memories of White Spot,” says Rob Sweetman, Founder and Executive Creative Director of White Spot’s agency of record, One Twenty Three West. “We wanted to remind people of why they fell in love with the brand in the first place, while welcoming newcomers. If you’re in BC, this is a place you have to visit.”

The campaign will appear on a wide range of media, including TV, radio, outdoor, digital, mobile and social to reach the diverse audiences around our province.

A new, distinctly West Coast menu design entertains guests with stories about White Spot’s unique BC history, and proudly features classic burger favourites and new dishes that respond to requests for more vegan, vegetarian and gluten-free dishes. White Spot even has a burger named after our province, the BC Burger!

Did you know?

White Spot serves more than 30,000 guests every day. That’s over 12 million people a year!

 

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