Oakville / CA. (rbi) Restaurant Brands International Inc. (RBI) reported financial results for the full year and fourth quarter ended December 31, 2015. Chief Executive Officer Daniel Schwartz: «We had a great first year as RBI, finishing the fourth quarter with strong results at both of our iconic brands, Tim Hortons (TH) and Burger King (BK). Successful product launches combined with significant net restaurant growth drove performance this year and our franchisees achieved meaningful levels of profitability. We continue to be excited about future opportunities at «Tim Hortons» and «Burger King» and are committed to building long-term sustainable growth for years to come».
Full Year 2015 Highlights
- Tim Hortons comparable sales increased 5.6 percent and Burger King comparable sales increased 5.4 percent in constant currency
- Delivered 155 net restaurant growth (NRG) at TH and 631 NRG at BK
- System-wide sales grew 9.3 percent at TH and 10.3 percent at BK in constant currency
- RBI Adjusted Ebitda grew 21.4 percent on an organic basis to 1’666.2 million USD versus prior year pro forma amount
- RBI Adjusted Diluted EPS was 1.18 USD per share
- Declared Restaurant Brands International Inc. dividends of 0.44 USD per share up 46.7 percent versus prior year declared dividends at Burger King Worldwide
Fourth Quarter 2015 Highlights:
- TH comparable sales increased 6.3 percent and BK comparable sales increased 3.9 percent in constant currency
- Delivered 69 NRG at TH and 334 NRG at BK
- System-wide sales grew 12.4 percent at TH and 8.8 percent at BK in constant currency
- RBI Adjusted Ebitda was up 25.4 percent on an organic basis to 442.6 million USD versus prior year pro forma amount
- RBI Adjusted Diluted EPS was 0.35 USD per share
Consolidated Operational Highlights
| Q4/2015 | Q4/2014 | FY-2015 | FY-2014 | ||||||||
| (unaudited) | (unaudited) | ||||||||||
| Comparable Sales Growth(1) | |||||||||||
| TH (2) | 6.3% | 4.1% | 5.6% | 3.1% | |||||||
| BK | 3.9% | 3.0% | 5.4% | 2.1% | |||||||
| System Net Restaurant Growth (NRG) | |||||||||||
| TH (2)(4) | 69 | 61 | 155 | 144 | |||||||
| BK | 334 | 412 | 631 | 705 | |||||||
| System-wide Sales Growth(1) | |||||||||||
| TH (2) | 12.4% | 7.4% | 9.3% | 6.6% | |||||||
| BK | 8.8% | 7.7% | 10.3% | 6.8% | |||||||
| System-wide Sales (3)(in USUSD millions) | |||||||||||
| TH (2) | USD | 1’632.7 | USD | 1’675.9 | USD | 6’349.8 | USD | 6’616.0 | |||
| BK | USD | 4’353.2 | USD | 4’308.0 | USD | 17’303.7 | USD | 17’017.1 | |||
| (1) | Comparable sales growth and system-wide sales growth are calculated on a constant currency basis and include sales at franchise restaurants and company-owned restaurants. |
| (2) | TH 2014 quarter and annual figures are shown for informational purposes only. |
| (3) | System-wide sales are driven by sales at franchised restaurants, as approximately 100% of current restaurants are franchised. We do not record franchise sales as revenue; however, our franchise revenues include royalties based on a percentage of franchise sales. |
| (4) | Store count excludes 398 and 413 limited service kiosks as of December 31, 2015 and 2014, respectively. NRG excludes limited service kiosks for the years ended December 31, 2015 and 2014. Commencing in the fourth quarter of 2015, we revised our presentation of restaurant counts to exclude limited service kiosks, with the revision applied retrospectively to the earliest period presented to provide period-to-period comparability. |
Consolidated Financial Highlights
| Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||||
| (in USD millions, except per share data) | 2015 | 2014 | 2014 PF | 2015 | 2014 | 2014 PF (7) | ||||||||||||
| (unaudited) | (unaudited) | |||||||||||||||||
| RBI Total Revenues | USD | 1’057.0 | USD | 417.8 | USD | 1’092.7 | USD | 4’052.2 | USD | 1’198.8 | USD | 4’200.3 | ||||||
| RBI Net Income (Loss) Attributable to | ||||||||||||||||||
| Common Shareholders | USD | 51.7 | USD | (510.8) | USD | (3.1) | USD | 103.9 | USD | (398.8) | USD | (166.6) | ||||||
| RBI Diluted Earnings (Loss) per Share | ||||||||||||||||||
| Attributable to Common Shareholders | USD | 0.25 | USD | (2.50) | USD | (0.02) | USD | 0.50 | USD | (2.32) | USD | (0.82) | ||||||
| TH Adjusted Ebitda (5) | USD | 243.4 | USD | 34.9 | USD | 208.8 | USD | 906.7 | USD | 34.9 | USD | 816.4 | ||||||
| BK Adjusted Ebitda (5) | USD | 199.2 | USD | 189.1 | USD | 189.1 | USD | 759.5 | USD | 726.0 | USD | 726.0 | ||||||
| RBI Adjusted Ebitda (6) | USD | 442.6 | USD | 224.0 | USD | 397.9 | USD | 1’666.2 | USD | 760.9 | USD | 1’542.4 | ||||||
| RBI Adjusted Net Income (Loss) Attributable | ||||||||||||||||||
| to Common Shareholders (6) | USD | 165.7 | USD | 125.8 | USD | 561.1 | USD | 467.6 | ||||||||||
| RBI Adjusted Diluted Earnings (Loss) per Share | ||||||||||||||||||
| Attributable to Common Shareholders (6) | USD | 0.35 | USD | 0.26 | USD | 1.18 | USD | 0.98 | ||||||||||
| (5) | TH Adjusted Ebitda and BK Adjusted Ebitda are our measures of segment profitability. |
| (6) | RBI Adjusted Ebitda, RBI Adjusted Net Income (Loss), and RBI Adjusted Diluted Earnings (Loss) per Share are non-GAAP financial measures. Please refer to “Non-GAAP Financial Measures” for further detail. |
| (7) | Please refer to RBI’s Form 8-K filed on December 09, 2015 with pro forma financial information for RBI. |
Strong comparable sales at both of our brands for 2015 resulted in RBI Adjusted Ebitda of 1’666.2 million USD, up 21.4 percent on an organic basis, excluding the impact of FX movements, and compared to prior year pro forma results. At TH, full year comparable sales growth of 5.6 percent combined with NRG of 155, resulted in 9.3 percent system-wide sales growth in constant currency. TH results were driven by continued strength in beverages as well as compelling new product offerings such as Nutella pockets and grilled wraps. At BK, comparable sales growth of 5.4 percent in conjunction with full year NRG of 631 led to BK system-wide sales growth of 10.3 percent. Comparable sales growth at BK was driven by successful new products and promotions such as the ‘2 for 5 USD’ platform, Chicken Fries, including Buffalo and Fiery flavors, and the A.1. Halloween Whopper sandwich.
TH Segment Results
| Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||||||||||||
| (in USD millions) | 2015 | 2014 | 2014 PF | 2015 | 2014 | 2014 PF | |||||||||||
| (unaudited) | (unaudited) | ||||||||||||||||
| Comparable Sales Growth (1)(2) | 6.3% | 4.1% | 4.1% | 5.6% | 3.1% | 3.1% | |||||||||||
| System-wide Sales Growth (1)(2) | 12.4% | 7.4% | 7.4% | 9.3% | 6.6% | 6.6% | |||||||||||
| System-wide Sales (2)(3) | USD | 1’632.7 | USD | 1’675.9 | USD | 1’675.9 | USD | 6’349.8 | USD | 6’616.0 | USD | 6’616.0 | |||||
| System Net Restaurant Growth (NRG) (2)(4) | 69 | 61 | 61 | 155 | 144 | 144 | |||||||||||
| System Restaurant Count at Period End (4) | 4’413 | 4’258 | 4’258 | 4’413 | 4’258 | 4’258 | |||||||||||
| Sales (11) | USD | 533.1 | USD | 92.8 | USD | 552.0 | USD | 2’074.3 | USD | 92.8 | USD | 2’188.6 | |||||
| Franchise and Property Revenues (11) | USD | 238.4 | USD | 50.8 | USD | 266.5 | USD | 882.6 | USD | 50.8 | USD | 956.5 | |||||
| TH Total Revenues (11) | USD | 771.5 | USD | 143.6 | USD | 818.5 | USD | 2’956.9 | USD | 143.6 | USD | 3’145.1 | |||||
| Cost of Sales (11) | USD | 435.3 | USD | 92.1 | USD | 469.4 | USD | 1’728.1 | USD | 92.1 | USD | 1’873.0 | |||||
| Franchise + Property Expenses (11) | USD | 100.0 | USD | 26.1 | USD | 131.5 | USD | 360.7 | USD | 26.1 | USD | 426.2 | |||||
| Segment SG+A (8)(11) | USD | 24.6 | USD | 6.6 | USD | 48.9 | USD | 93.2 | USD | 6.6 | USD | 174.5 | |||||
| Segment depreciation and amortization (9)(11) | USD | 28.2 | USD | 4.3 | USD | 35.9 | USD | 117.7 | USD | 4.3 | USD | 130.9 | |||||
| TH Adjusted Ebitda (5) (10) (11) | USD | 243.4 | USD | 34.9 | USD | 208.8 | USD | 906.7 | USD | 34.9 | USD | 816.4 | |||||
| (8) | Segment selling, general and administrative expenses consists of segment selling expenses and segment management general and administrative expenses. |
| (9) | Segment depreciation and amortization consists of depreciation and amortization included in cost of sales and franchise and property expenses. |
| (10) | TH Adjusted Ebitda for the three months ended December 31, 2015 includes 3.6 million USD of cash distributions received from equity method investments, with no impact from acquisition accounting on cost of sales. TH Adjusted Ebitda for the year ended December 31, 2015 excludes (0.5) million USD of acquisition accounting impact on cost of sales and includes 13.6 million USD of cash distributions received from equity method investments. TH pro forma Adjusted Ebitda for the three months and year ended December 31, 2014 includes 4.0 million USD and 14.1 million USD, respectively, of cash distributions received from equity method investments. |
| (11) | TH 2014 financials reflects results from 12/12/2014 to 12/31/2014. |
TH full year system-wide sales growth of 9.3 percent, in constant currency, was driven by favorable comparable sales growth and NRG over the full year. In 2015, we achieved consolidated TH comparable sales growth of 5.6 percent, with TH Canada and TH US comparable sales growth of 5.5 percent and 6.4 percent, respectively. We achieved unit growth of 3.6 percent with NRG of 155 during the year. We ended the year with a TH restaurant count of 4’413.
Comparing to prior year pro forma results, fourth quarter TH Total Revenues grew 10.7 percent to 771.5 million USD while TH Adjusted Ebitda grew 36.9 percent to 243.4 million USD on an organic basis, excluding the impact of FX movements. For the full year, TH Total Revenues grew 8.8 percent to 2’956.9 million USD while TH Adjusted Ebitda grew 28.8 percent on an organic basis to 906.7 million USD.
BK Segment Results
| Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||||||
| (in USD millions) | 2015 | 2014 | 2015 | 2014 | |||||||
| (unaudited) | (unaudited) | ||||||||||
| Comparable Sales Growth (1) | 3.9% | 3.0% | 5.4% | 2.1% | |||||||
| System-wide Sales Growth (1) | 8.8% | 7.7% | 10.3% | 6.8% | |||||||
| System-wide Sales(3) | USD | 4’353.2 | USD | 4’308.0 | USD | 17’303.7 | USD | 17’017.1 | |||
| System Net Restaurant Growth (NRG) | 334 | 412 | 631 | 705 | |||||||
| System Restaurant Count at Period End | 15’003 | 14’372 | 15’003 | 14’372 | |||||||
| Sales | USD | 22.7 | USD | 18.9 | USD | 94.7 | USD | 74.6 | |||
| Franchise and Property Revenues | USD | 262.8 | USD | 255.3 | USD | 1’000.6 | USD | 980.6 | |||
| BK Total Revenues | USD | 285.5 | USD | 274.2 | USD | 1’095.3 | USD | 1’055.2 | |||
| Cost of Sales | USD | 19.6 | USD | 16.6 | USD | 81.4 | USD | 64.3 | |||
| Franchise + Property Expenses | USD | 38.0 | USD | 38.4 | USD | 142.5 | USD | 152.9 | |||
| Segment SG+A (8) | USD | 40.2 | USD | 42.0 | USD | 159.0 | USD | 162.5 | |||
| Segment depreciation and amortization (9) | USD | 11.5 | USD | 11.9 | USD | 47.1 | USD | 50.5 | |||
| BK Adjusted Ebitda (5) | USD | 199.2 | USD | 189.1 | USD | 759.5 | USD | 726.0 | |||
BK delivered strong comparable sales growth and net restaurant growth in 2015 resulting in system-wide sales growth of 10.3 percent in constant currency versus prior year results. BK sales momentum was due to a well-balanced promotional mix and compelling product launches throughout the year. Full year global comparable sales growth of 5.4 percent was led by strong performances in U.S. and Canada (US+C), Europe, the Middle East, and Africa (EMEA), Latin America and the Caribbean (LAC), and Asia Pacific (APAC). BK added 631 net new restaurants for the full year, ending the year with total restaurant count of 15’003, a 4.4 percent increase in total units versus the prior year unit count.
BK Q4 revenues grew 9.7 percent to 285.5 million USD, while BK Adjusted Ebitda grew 12.6 percent to 199.2 million USD, excluding the impact of FX movements. For the full year, BK Total Revenues grew 10.4 percent to 1’095.3 million USD, while BK Adjusted Ebitda grew 13.1 percent to 759.5 million USD, excluding the impact of FX movements.
Cash and Liquidity
As of December 31, 2015, total debt was 8.9 billion USD and net debt, after adjustment for 0.8 billion USD of cash and cash equivalents, was 8.2 billion USD, excluding original issue discounts. Our cash balance of 0.8 billion USD was down 1.0 billion USD versus the prior year, primarily as a result of excess cash on hand at the end of 2014 for the January 2015 tender offer to purchase approximately 1.0 billion USD of TH legacy notes.
On February 16, 2016, our Board of Directors declared a dividend of 0.14 USD per common share and Class B exchangeable partnership unit of Restaurants Brands International Limited Partnership for the first quarter of 2016. The dividend is payable on April 04, 2016, to shareholders of record at the close of business on March 03, 2016.
OTHER TOPICS FROM THIS SECTION FOR YOU:
- LG Chem and ADM: Joint Ventures in Illinois are canceled
- Wendy’s: Company plans to expand into Europe
- Delivery Hero: may face significant fine due to antitrust violations
- Emmi Group: intends to acquire Mademoiselle Desserts
- AB Foods: announces strong H1-2024 performance
- DSM-Firmenich: Queen Maxima inaugurates new dual head office
- RBI: Announces Investments to Drive Growth in China
- Europastry S.A.: puts its IPO process on hold
- McCormick: Reports Second Quarter Performance
- Reborn Coffee: Closes Master License Agreement for UAE
- General Mills: Reports Fiscal 2024 Fourth-Quarter Results
- SunOpta expands plant for processing plant-based beverages
- Britannia: Operating profit grew 10 percent in FY-2023
- Tate + Lyle and CP Kelco to merge to leading global player
- Ülker Bisküvi: announces Q1-2024 financial results
- Europastry: intends to go public on the Spanish stock exchange
- Europastry S.A.: publishes 2023 Annual Report
- Swisslog: announces new Americas region headquarters
- Reborn Coffee: Expanding Omni-Channel Strategy
- Mondelez International and Lotus Bakeries Join Forces
