Restaurant Brands Q3 Earnings & Revenues Miss Estimates, Rise Y/Y

Restaurant Brands International, Inc. QSR reported third-quarter 2024 results with earnings and revenues missing the Zacks Consensus Estimate. The top and bottom lines increased on a year-over-year basis.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.QSR’s Q3 Earnings & Revenue DiscussionQSR reported adjusted earnings per share (EPS) of 93 cents, missing the Zacks Consensus Estimate of 94 cents. Organically, the bottom line grew 4.6% year over year.Quarterly net revenues of $2.29 billion missed the consensus mark of $2.3 billion by 0.5%. The top line increased 24.7% on a year-over-year basis. On an organic level, the upside was due to the net impact of non-Carrols-acquired BK restaurants and the acquisition of PLK Carrols restaurants. Additionally, organic revenue growth was driven by system-wide sales increases at International (INTL) and Tim Hortons (TH). However, it was partially offset by declines in system-wide sales at Burger King (BK), Popeyes Louisiana Kitchen (PLK) and Firehouse Subs (FHS).Restaurant Brands International Inc. Price, Consensus and EPS Surprise Restaurant Brands International Inc. price-consensus-eps-surprise-chart | Restaurant Brands International Inc. QuoteDuring the quarter, consolidated comparable sales (comps) increased 0.3% and net restaurants grew 3.8% year over year. Global system-wide sales rose 3.2% year over year.Segmental RevenuesRestaurant Brands operates through five segments — TH, BK, PLK, FHS and INTL. As of now, RH’s results for the Carrols and PLK China are included in the BK and INTL segments, respectively.TH business reported revenues of $1.04 billion, down 0.8% from the prior-year quarter’s levels. Organically, revenues were up 0.7% year over year. System-wide sales rose 2.8% year over year compared with the 8.1% growth reported in the prior-year quarter. Comps rose 2.3% year over year compared with a 7.6% rise in the year-ago period.BK’s revenues amounted to $362 million, up 10.1% from the year-ago period (10.2% organically). System-wide sales fell 1.5% year over year against growth of 6.4% reported in the prior-year quarter. Comps slipped 0.7% year over year versus 6.6% growth in the year-earlier quarter. Net restaurant growth was down 1.5% year over year compared with a 2.4% decline reported in the prior-year quarter.PLK generated revenues of $195 million, up 9.7% year over year (9.8% organically). System-wide sales fell 0.6% year over year against growth of 11.2% reported in the prior-year quarter. Comps fell 4% year over year versus the 5.6% growth reported in the prior-year quarter. Net restaurant growth was 4.1% year over year compared with 5.3% growth a year ago.FHS’ revenues totaled $53 million, up 4.1% from the year-ago levels (4.2% organically). System-wide sales fell 1.3% against an improvement of 7% reported in the prior-year quarter. Net restaurant growth was 3.9% compared with 2.5% in the prior-year quarter. Comps fell 4.8% year over year against 3.6% growth reported in the prior-year quarter.INTL segment revenues came in at $243 million, up 6.4% year over year (8.6% organically). System-wide sales growth was 8% year over year compared with the 15.6% growth reported in the prior-year quarter. Comps rose 1.8% year over year compared with the 7.7% growth reported in the prior-year quarter. Net restaurant growth was 7.6% year over year compared with a 9.5% increase a year ago.Operating PerformanceDuring the quarter, adjusted operating income rose 7.1% year over year to $652 million. Our projection for the metric was $636.6 million.Adjusted EBITDA of $748 million was up 7.2% from $698 million reported in the prior-year quarter. Our estimate for the metric was $735.7 million.Cash and CapitalRestaurant Brands ended the third quarter with a cash and cash equivalent balance of $1.2 billion compared with $1.31 billion as of Sept. 30, 2023. As of Sept. 30, 2024, long-term debt (net of current portion) was $13.6 billion compared with $12.9 billion as of Sept. 30, 2023.Net cash provided by operating activities (for the nine months ended Sept. 30) was $1.02 billion compared with $920 million in the year-ago period. Free cash flow in the same period was $898 million versus $847 million a year ago. Adjusted EBITDA net leverage ratio stood at 4.8, flat year over year.QSR’s board of directors announced a dividend payout of 58 cents per common share and partnership exchangeable unit of Restaurant Brands International Limited Partnership in the fourth quarter of 2024. The dividend is payable on Jan. 3, 2025, to shareholders of record at the close of business as of Dec. 20, 2024.2024 Guidance UpdatedQSR now expects adjusted net interest expense within $565-$575 million and segment G&A (excluding RH) in the $640-$650 million range. Share-based compensation and non-cash incentive compensation expenses are now anticipated to be in the range of $170-$175 million versus the prior projection of $170-$180 million.The company still expects capital expenditures, tenant inducements and incentives (excluding RH) to be approximately $300 million.Maintains Long-Term Guidance (2024-2028)The company reiterated its long-term consolidated performance expectations for 2024 to 2028. It anticipates achieving more than 3% growth in comparable sales and at least 5% net restaurant growth. QSR projects system-wide sales growth exceeding 8%, with adjusted operating income expected to grow at a rate equal to or greater than the system-wide sales growth.QSR’s Zacks RankRestaurant Brands currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Recent Retail-Wholesale ReleasesChipotle Mexican Grill, Inc. CMG reported mixed third-quarter 2024 results, with earnings beating the Zacks Consensus Estimate for the seventh consecutive quarter but revenues missing the same after beating in the preceding four quarters.CMG reported adjusted EPS of 27 cents, outpacing the Zacks Consensus Estimate of 25 cents. The bottom line increased 17.4% from 23 cents reported in the year-ago quarter. Quarterly revenues of $2,793.6 million missed the consensus mark of $2,817 million. However, the top line rose 13% on a year-over-year basis. This upside was driven by strong comparable restaurant sales growth, backed by higher transactions of 3.3% as well as a 2.7% rise in average checks.Shake Shack Inc. SHAK posted third-quarter fiscal 2024 results, wherein earnings and revenues beat the Zacks Consensus Estimate. Both top and bottom lines also increased on a year-over-year basis. The company ramped up its investment in marketing strategies and programs aimed at increasing guest engagement and brand awareness, even amid a challenging market environment. These efforts have paid off, as the company has achieved some of the highest brand awareness levels on record, which, in turn, is fueling robust sales and profitability growth.SHAK’s fiscal third-quarter adjusted EPS came in at 25 cents, which beat the Zacks Consensus Estimate of 20 cents. In the prior-year quarter, the company reported adjusted EPS of 17 cents. Quarterly revenues of $316.9 million beat the consensus mark of $315 million. The top line increased 14.7% on a year-over-year basis.BJ's Restaurants, Inc. BJRI reported third-quarter fiscal 2024 results, with earnings missing the Zacks Consensus Estimate and revenues beating the same. Both top and bottom lines increased on a year-over-year basis.The company reported an adjusted loss per share of 13 cents, missing the Zacks Consensus Estimate of 3 cents. In the year-ago quarter, it recorded an adjusted loss per share of 16 cents. Total revenues of $325.7 million beat the consensus mark by 0.04%. The top line inched up 2.2% year over year. This upside was backed by strong guest traffic and Pizookie Meal Deal performance.Zacks Names #1 Semiconductor StockIt's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report BJ's Restaurants, Inc. (BJRI): Free Stock Analysis Report Chipotle Mexican Grill, Inc. (CMG): Free Stock Analysis Report Restaurant Brands International Inc. (QSR): Free Stock Analysis Report Shake Shack, Inc. (SHAK): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks