Restaurant Brands International (QSR) Q1 2023 Earnings Call Transcript

For the period ending March 31, 2023

May 2, 2023 8:30 a.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Good morning, and welcome to the Restaurant Brands International First Quarter 2023 Earnings Conference Call. [Operator Instructions]. Please note, this event is being recorded.

I would now like to turn the conference over to Kendall Peck, RBI's Head of Investor Relations. Please go ahead.

Kendall Peck

Thank you, operator. Good morning, everyone, and welcome to Restaurant Brands International's Earnings Call for the first quarter ended March 31, 2023. As a reminder, a live broadcast of this call may be accessed on the Investor Relations web page at rbi.com/investor and a recording will be available for replay.

Joining me on the call today are Restaurant Brands International's Executive Chairman, Patrick Doyle; CEO, Josh Kobza; and CFO, Matt Dunnigan.

Today's earnings call contains forward-looking statements, which are subject to various risks set forward 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 will be referencing franchisee profitability measures that are preliminary internal estimates based on unaudited self-reported franchisee results.

In addition, the consolidated growth metrics discussed during the prepared remarks, including consolidated system-wide sales growth, comparable sales, net restaurant growth and organic adjusted EBITDA growth exclude the results from franchise restaurants in Russia, as we did not generate any new profits from restaurants in Russia in 2022. And do not expect to generate any new profits in 2023.

And now I'll turn the call over to Josh.

Josh Kobza

Good morning, everyone. And thank you for joining us on today's call to discuss our first quarter of 2023.

I've spent the past few months traveling around the world to connect with franchisees, visit restaurants and engage with guests. I've also spent time internally with our teams to hear their views on the opportunities in the business. I'm excited about the path ahead for each of our brands and I'm incredibly proud to see the hard work of our employees, our franchisees and their team members who are responsible for the results we're sharing today.

We had a good start to the year with first quarter consolidated comparable sales growing 10.3% year-over-year, and net restaurant growth of 4.2%. This translated into global system wide sales growth of 14.7%, organic adjusted EBITDA growth of 15.6% and organic adjusted EPS growth of 22.1%.