Oakville / CA. (rbi) Restaurant Brands International Inc. (RBI) reported financial results for the second quarter ended June 30, 2015. Chief Executive Officer Daniel Schwartz: «We are pleased to report another quarter of solid results for both of our iconic brands, Tim Hortons (TH) and Burger King (BK). The continued expansion of our global footprint combined with effective marketing and successful product launches drove system-wide sales growth. We believe our focus on enhancing our guest experience and increasing franchisee profitability will continue to create value for all of our stakeholders – our guests, franchisees, employees and shareholders – in the second half of the year».
Second Quarter 2015 Highlights:
- Tim Hortons (TH) comparable sales increased 5.5 percent and Burger King (BK) comparable sales increased 6.7 percent in constant currency
- TH delivered net restaurant growth (NRG) of 52 and BK delivered NRG of 141
- System-wide sales grew 8.4 percent at TH and 11.6 percent at BK in constant currency
- RBI Adjusted Ebitda was up 19.1 percent on an organic basis to 427 million USD versus the prior year pro forma amount
- RBI Adjusted Diluted EPS was 0.30 USD per share
- RBI declared a dividend of 0.12 USD per common share and partnership exchangeable unit of RBI LP for the third quarter of 2015
TH Segment Results
Comparable sales growth and NRG for the trailing twelve month period contributed to TH system-wide sales growth of 8.4 percent in the second quarter. TH comparable sales grew 5.5 percent, with comparable sales growth for TH Canada and TH U.S. markets at 5.4 percent and 7.0 percent, respectively. TH added 52 net new restaurants to end the quarter with 4,776 restaurants. For the trailing twelve month period, TH increased its restaurant base by 230 restaurants, or 5.1 percent. TH Total Revenues declined 4.3 percent versus the prior year pro forma amount to 763.2 million USD, primarily as a result of FX headwinds. Excluding the impact of FX movements, TH Total Revenues increased 7.9 percent compared to prior year pro forma results. Year-over-year, TH Adjusted Ebitda grew 22.8 percent on an organic basis (excluding the impact of FX movements) as a result of top-line growth, operating leverage and cost discipline.
BK Segment Results
Comparable sales growth and acceleration of net restaurant openings at BK helped drive system-wide sales growth of 11.6 percent. BK achieved comparable sales growth of 6.7 percent with positive same-store sales in all markets. U.S. and Canada and Latin America and the Caribbean notably outperformed with comparable sales growth of 7.9 percent and 8.5 percent, respectively. BK top-line growth was largely attributable to comparable sales growth and the addition of 720 net new restaurants for the trailing twelve month period. With 141 net new restaurants added in the second quarter, BK ended the period with 14,528 restaurants. BK experienced a 6.4 percent FX headwind to revenues for the second quarter. Excluding the impact of FX movements, BK Total Revenues grew by 13.7 percent to 278.2 million USD versus prior year. Compared to the second quarter 2014, BK Adjusted Ebitda increased 14.7 percent on an organic basis (Imgage Source: Tim Hortons).