In an August 4th release, Restaurant Brands International Inc. (RBI) posted financial results for the 2nd quarter of fiscal 2022. Along with other QSRs and casual dining competitors, all are subject to the pressures of increased costs for food, packaging and labor in a competitive environment restrained by the hangover of COVID and inflation impacting consumers.

For the 2nd Quarter ending July 30th, net income was $346 million on total revenue of $1,639 million.  Comparable figures for the 2nd quarter of fiscal 2021 ending July 30th were net income of $391 million on total revenue of $1,438 million. Diluted EPS fell from $0.84 for the 2nd quarter of fiscal 2021 to $0.76 for the most recent quarter.

For the quarter, system-wide sales increased by 14.2 percent compared to Q2 of FY 2021.

Segment results comprised:-

Tim Horton’s: Revenue, $1,838 million; EBITDA, $274 million; Comparable store sales increase, 12.2 percent with 5,352 stores

Burger King: Revenue $6,444 million; EBITDA $270 million; Comparable store sales increase 10.0 percent with 19,311 stores

Popeye’s LA Kitchen: Revenue,  $1,503 million; EBITDA, $61 million; Comparable store sales increase, 1.4 percent with 3,562 stores

José Cil, Chief Executive Officer of Restaurant Brands International Inc. ("RBI") commented, We made significant progress across our business in the second quarter, accelerating consolidated comparable sales to 9 percent and driving 14 percent growth in global system-wide sales. These results reflect benefits from our dedicated investments in key areas of the business, including people, technology, operations and marketing,"

He continued "The team at Tim Hortons Canada delivered exceptional results this quarter, aided by investments against our Back to Basics plan and strong execution from our committed group of restaurant owners. In the second quarter, we drove sales above pre-pandemic levels for the first time since the onset of the pandemic and continue to build strong momentum as we move to accelerate growth. We believe there is a long runway for Tim's in Canada, anchored by great product quality, menu and digital innovation, and a strong group of restaurant owners,"

 With regard to Burger King and Popeye’s Cil stated "We continue to see steady improvements in our Burger King U.S. business and will be sharing the details of our plan to accelerate home market growth with all of our franchisees in early September.  In addition, the Burger King international business had another strong quarter, posting an impressive 18 percent comparable sales and 28 percent system-wide sales growth. Meanwhile, the Popeyes' team has been successful delivering strong unit growth and at Firehouse Subs, the team is focused on building the capabilities to execute on our vision of rapid growth for this loved brand in the U.S. and around the world," continued Cil.

Cil concluded "Our second quarter results demonstrate the benefits of our diversified, global business model and strong free cash flow generating capability which allows us to continue investing in important areas of the business while returning capital to shareholders. I am incredibly proud of the hard work of our franchisees, team members and employees who remain focused on executing against our long-term plans to drive sustainable growth,"

According to the earnings call innovations under test include walk-up windows and express drive-through lanes for mobile orders and two parallel drive-through lanes to expedite delivery and reduce the length of peak-time queues that reduce patronage.

 On July 30th 2022, QSR posted assets of $22,754 million of which $17,162 million comprised goodwill, lease obligations and intangibles. The Company had an intraday market capitalization of $16,910 million on August 5th. QSR trades with a forward P/E of 14.7 and has ranged over a 52-week period from $46.68 to $65.64 with a 50-day moving average of $51.34.  Twelve-month trailing operating margin was 32.7 percent and profit margin 13.4 percent.  Return on assets over the trailing twelve months was 5.4 percent and the return on equity 32.7 percent. At close of trading on August 3rd pre-release, QSR was priced at $54.99. At market open, post-release on August 4th QSR traded at at $58.32