In a February 13^th release, Restaurant Brands International Inc. (QSR) posted financial results for the 4^th quarter and fiscal 2023. Along with other QSRs and casual dining competitors, the Company and its franchisees among five 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.  The newly formed International Division faces geopolitical headwinds and the challenges of currency fluctuation.

For the 4^th Quarter of FY 2023 ending December 31^st 2023 the Company attained revenue consistent with consensus estimates but beat on EPS.  Net income was $726 million on total revenue of $1,820 million.  Comparable figures for the 4^th quarter of FY 2022 were net income of $336 million on total revenue of $1,689 million. Diluted EPS attained $1.60 for the most recent quarter compared to $0.74 for the corresponding quarter of FY 2022.

For the FY 2023 ending December 31^st 2023 the Company posted net income of $1,718 million on total revenue of $7,022 million. Comparable figures for FY 2022 were net income of $1,482 million on total revenue of $6,505 million. Diluted EPS attained $3.76 for FY 2023 compared to $3.25 for FY 2022.

For the 4^th quarter, system-wide sales increased by 9.6 percent compared to 11.4 percent for Q4 of FY 2022.

Comparing Q4 of FY 2023 with 2022, revenue increased by 7.8 percent and operating margin increased from 20.5 percent in Q4 2022 to 25.7 percent for the most recent quarter.

Segment results comprised:-

Tim Horton’s: Sales, $1,849 million; adjusted operating income (AOI), $231 million; Comparable store sales increase, 8.4 percent with 4,525 stores

Burger King: Sales $2,903 million; AOI, $69 million; Comparable store sales increase 6.3 percent with 7,144 stores

Popeye’s LA Kitchen: Sales,  $1,503 million; AOI, $56 million; Comparable store sales increase, 5.5 percent with 3,394 stores

Firehouse Subs: Sales, $298 million; AOI, $8 million; Comparable store sales increase, 3.5 percent with 1,265 stores.

International: Sales, $4,332 million; AOI, $145 million; Comparable store sales increase, 4.6 percent with 14,742 stores

Josh Kobza , CEO of RBI commented. "We are delivering better experiences for our guests, better profitability for our franchisees and are making the right long-term investments behind the growth of our brands. We have started 2024 with a foundation of strong operational performance and I'm thankful to all our teams, franchisees and their team members who work so hard to make us successful."

On December 31^st 2023, QSR posted assets of $23,391 million of which $16,882 million comprised goodwill, lease obligations and intangibles against long-term debt and leases of $15,221 million. The Company had an intraday market capitalization of $24,160 million on February 16^th. QSR trades with a forward P/E of 16.5 and has ranged over a 52-week period from $59.99 to $79.94 with a 50-day moving average of $76.50.  Twelve-month trailing operating margin was 27.0 percent and profit margin 17.0 percent.  Return on assets over the trailing twelve months was 5.8 percent and the return on equity 38.2 percent.