In an August 8^th release, Restaurant Brands International Inc. (QSR) posted financial results for the 2^nd quarter of fiscal 2023. Along with other QSRs and casual dining competitors, the Company and its franchisees among four operating divisions are subject to the pressures of increased costs for food, packaging and labor in a competitive environment restrained by inflation that is impacting discretionary spending by consumers.

For the 2^nd Quarter of FY 2023 ending June 30^th 2023 the Company slightly beat both top and bottom line consensus estimates.  Net income was $241 million on total revenue of $1,775 million compared to a consensus estimate of $1,750 million.  Comparable figures for the 2^nd quarter of FY 2022 ending June 30^th were net income of $236 million on total revenue of $1,639 million. Diluted EPS attained $0.77 for the most recent quarter compared to the consensus estimate and the value of $0.76 for the corresponding quarter of FY 2022.

For the 2^nd quarter, system-wide sales increased by 14.7 percent compared to Q2 of FY 2022.

Comparing the 2^nd quarter of FY 2023 with 2022, revenue increased by 8.2 percent but operating margin declined to 31.2 percent from 33.0 percent.

 Segment results comprised:-

Tim Horton’s: Revenue, $1,106 million; EBITDA, $290 million; Comparable store sales increase,11.4 percent with 5,662 stores

Burger King: Revenue $529 million; EBITDA $288 million; Comparable store sales increase 10.2 percent with 18,936 stores

Popeye’s LA Kitchen: Revenue,  $183 million; EBITDA, $73 million; Comparable store sales increase, 6.3 percent with 4,269 stores

Firehouse Subs: Revenue,  $48 million; EBITDA, $14 million; Comparable store sales increase, 2.1 percent with 1,259 stores

Josh Kobza who replaced Jose Cil as Chief Executive Officer of RBI commented, "I am very proud of the continued performance of our teams and our franchisees who helped drive 14 percent growth in system-wide sales and another quarter of improved franchisee profitability. We are generating positive momentum and results behind each of our iconic brands by focusing on new menu innovations, supported by exceptional marketing and operations. I know the team is very motivated by the significant growth opportunities ahead of us in our home markets and around the world."

On June 30^th 2023, QSR posted assets of $23,133 million of which $16,892 million comprised goodwill, lease obligations and intangibles against long-term debt and leases of $15,112 million. The Company had an intraday market capitalization of $22,860 million on August 8^th. QSR trades with a forward P/E of 17.6 and has ranged over a 52-week period from $51.26 to $78.30 with a 50-day moving average of $75.70.  Twelve-month trailing operating margin was 31.0 percent and profit margin 15.3 percent.  Return on assets over the trailing twelve months was 5.6 percent and the return on equity 31.0 percent. At close of trading on August 7^th pre-release, QSR was priced at $74.43. At close of trading, post-release on August 8^th QSR traded at at $74.29 on a day when the S&P index lost 0.5 percent