Restaurant Brands International (QSR) Q3 2022 Earnings Call Transcript

For the period ending September 30, 2022

November 3, 2022 8:30 a.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Good morning, and welcome to the Restaurant Brands International Third Quarter 2022 Earnings Conference Call. All participants will be in listen-only mode. [Operator Instructions] After today’s presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note this event is being recorded.

I’d now like to turn the conference over to Kevin [indiscernible], RBI's Head of Investor Relations. Please go ahead.

Unidentified Company Representative

Thank you, operator. Good morning, everyone, and welcome to Restaurant Brands International's earnings call for the third quarter ended September 30, 2022.

As a reminder, a live broadcast of this call may be accessed through the Investor Relations web page at rbi.com/investors, and a recording will be available for replay. Joining me on the call today are Restaurant Brands International's CEO, José Cil; COO, Josh Kobza; and CFO, Matt Dunnigan.

Today's earnings call contains forward-looking statements, which are subject to various risks set forth in the press release issued this morning and in our SEC filings. In addition, this earnings call includes non-GAAP financial measures. Reconciliations of non-GAAP financial measures are included in the press release available on our website.

During portions of the call today we'll be referencing three year comparisons for system-wide sales, growth and comparable sales to provide a cleaner indication of how the business is trending versus a more normalized period. The three-year comparisons are calculated on a geometric stacked basis by using the 2020, 2021 and 2022 disclosed growth metrics. In addition, the consolidated growth metrics discussed during the prepared remarks including consolidated system-wide sales growth, net restaurant growth and organic adjusted EBITDA growth, exclude results from Firehouse Subs, which we acquired on December 15, 2021, to reflect comparable year-over-year growth figures.

And now, I'll turn the call over to José.

José Cil

Thanks, Kevin, and good morning, everyone. Thank you for joining us on today's call to discuss our results for the third quarter of 2022. This quarter, we saw the key pieces of our plan continue to come together and foster meaningful growth across our brands and regions. With year-over-year comparable sales up 9%, system-wide sales growth of 14% and 8% organic adjusted EBITDA growth, or 10% excluding an estimated impact on adjusted EBITDA related to Russia. These results were primarily driven by strong performance across our Tim Hortons Canada, and Burger King International businesses; improvements in the U.S. at Burger King, Popeyes and Firehouse Subs; continued growth in digital sales globally; and development progress.