In a May 3rd release, Restaurant Brands International Inc. (RBI) posted financial results for the 1st quarter of fiscal 2022. Along with other QSRs and casual dining competitors, all are subject to the inflationary pressures of increased costs for food, packaging and labor in a competitive environment still restrained by COVID.
For the 1st Quarter ending March 31st, net income was $270 million on total revenue of $1,451million. Comparable figures for the 1st quarter of fiscal 2021 ending March 31st were net income of $271 million on total revenue of $1,260 million. Diluted EPS rose slightly from $0.58 for the 1st quarter of fiscal 2021 to $0.59 for the most recent quarter.
For the quarter, system-wide sales increased by 14.0 percent compared to Q1 of FY 2021.
Segment results comprised:-
Tim Horton’s: Revenue, $1,556 million; EBITDA, $231 million; Comparable store sales increase, 8.4 percent with 5,818 stores
Burger King: Revenue $5,818 million; EBITDA $229 million; Comparable store sales increase 10.3 percent with 19,260 stores
Popeye’s LA Kitchen: Revenue, $1,383 million; EBITDA, $56 million; Comparable store sales decrease, (3.0) percent with 3,771 stores
José Cil, Chief Executive Officer of Restaurant Brands International Inc. ("RBI") commented, "Our first quarter results reflect the hard work of our great franchisees, team members, and employees with important milestones including a strong resurgence in comparable sales, record first quarter new restaurant openings, and the highest level of digital engagement we have seen from guests across our home markets. This progress allowed us to continue investing behind our key priorities, while also returning over $400 million to shareholders between dividends and share repurchases."
"Tim Horton’s Canada and Burger King International had standout sales performances, both with double digit comparable sales growth during the first quarter, while Burger King U.S. continued to lay the foundation to return to long term, sustainable growth. In addition, our strong start to the year in new restaurant openings and the progress we've made in ramping our global development capabilities at Tim Horton’s and Popeye’s gives us confidence that we are on track to accelerate unit growth in 2022."
Cil concluded, "With home market digital sales reaching their highest levels ever, we're pleased with the investments we've made to allow our guests to engage with our brands in more convenient and personal time. We believe we're well positioned to continue our momentum to grow all four of our brands over the long-term."
On March 31st 2021, QSR posted assets of $23,172 million of which $18,638 million comprised goodwill, lease obligations and intangibles. The Company had an intraday market capitalization of $17,750 million on May 3rd. QSR trades with a forward P/E of 14.9 and has ranged over a 52-week period from $53.47 to $70.14 with a 50-day moving average of $57.96. Twelve-month trailing operating margin was 33.5 percent and profit margin 14.6 percent. Return on assets over the trailing twelve months was 5.2 percent and the return on equity 33.1 percent. At close of trading on May 2nd pre-release, QSR was priced at $56.99. At market close, post-release on May 3rd QSR traded at at $55.16