Recent QSR transcripts
Associated QSR filings
| Stephen Lichtner | Sr. Director, FP&A & Head, IR |
| José Cil | CEO |
| Josh Kobza | COO |
| Matt Dunnigan | CFO |
| Jon Tower | Wells Fargo |
| David Palmer | Evercore ISI |
| Dennis Geiger | UBS |
| John Glass | Morgan Stanley |
| Chris Carril | RBC Capital Markets |
| Nicole Miller | Piper Sandler |
| Patricia Baker | Deutsche Bank |
Good morning and welcome to the Restaurant Brands International First Quarter 2021 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]. is event this note being recorded. Please now Stephen Lichtner, would like Relations. to to over conference the RBI's turn I Head Investor of Please go ahead.
Brands XXXX. Thank welcome the morning, Good quarter International's Restaurant first XX, you, for earnings March everyone, ended call Operator. to and
a be of this reminder, available through for be call and investor.rbi.com, broadcast webpage Relations replay. Investor at live a a may accessed As the recording will
Dunnigan. Kobza; forth Today's various Brands on call International's are CEO, SEC and the CFO, this COO, Cil; risks press filings. me statements, Matt Joining forward-looking our issued Restaurant Josh earnings to contains and which in call José subject in morning release today are the set
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Let's turn the King. Burger to discussion
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us joining everyone morning. and this Thanks, thanks Josh, for
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Instructions]. the now [Operator will begin session. question-and-answer We
first Jon Fargo. comes from go with Wells Tower Please ahead. question The
Great, alluded particularly discuss congrats thanks Hortons that on as the a to how to dig to Canadian given and the the XXXX the dig Thank at over got you it can to earlier we Tim Canada, into particularly spending through or in and today contribution incremental you for is are timing, taking Canada? plan into progress. where this ad question. I'm just fund mobility the seeing facing promotional in incremental made going that plan media bleed given in traditional challenged the should a whether today moment? conversation, and perhaps could you. Lots show or the you activity make to expect curious; dollars, you've more that environment Can challenges the to or you've in the that right be utilize the you channels, incremental up it's now digital
Canada famous, confidence and in with we we if returns, plan normalcy, obviously, depend, Overall, be behind the going And get and a just Canada. up bring quarters. the experience to of driving Canada and of a in in able during to how making going it's I what is as able firepower will as of be the food, we our team, Basics initiatives capture as on initiatives as rewards timing Tims the it investment have well to the also the be function the as the we've vaccine in program the mobility reaches focused and we're of want that the that seen markets investments other in Hey, made growth partnership and as we've our we're the in awareness the the as company, we'll feel well Canada. to really Canadians to confidence opportunity and investment remarks, quality and experience to continue position really we're higher what restaurant to owners Jon, as invest to plan, to to the keeping globe. progress good these think have things levels behind making that higher and team, our we've how Obviously, is progress we a this levels use The it are a believe are as got exists that come well. the of some Tims here the our brand been and our able to first at it is modernizing quarter. you drive-thru. that bring -- that on it that really And platforms the and the our invest will, start is important with And now U.S. and business, planning drive in Look, to expanding mentioned that in rollout. return in once have our in those flexibility, digital be it's means menu, confidence to be much thanks budget around in to U.S., love core But that the good in coming to as to well opening Tims positioned owners, message the feel around different that as we that question. again, initiatives more be as what it will the out the encouraged prepared the for by at by we we situation advertising to encouraged in Back a initiatives
thing Jon. just hi, one Yes, Yes, in there quick add I timing. would
invest it expect, the year. Canadian to million this probably a to fluctuate as bit we $XX mentioned progress think we fluid, Thanks do the we'd But expect the be question. throughout the year. support as I José investments entire here, for
with Please ahead. go question next comes Palmer David Evercore The ISI. from
that how break in I said was you Perhaps discussion Thanks means think and lately. comments overall well, what perhaps over low-single-digits you and daypart being that the down for I two-year breakfast and some was comp food there for -- can lately. And those as numbers you think it positive thanks was for you're heard comp particularly breakfast about again, go that positive. on Tims. on I down Tims doing the two-year breakfast a mentioned basis
a for be But going people too think I and big to you're look little much year anyway. I sense at we had for a to XXXX of? that's rough base get XXXX going was year into get the back not loyalty the as -- supposed to kind And really and we discussion. just a I the bit important guidance. year a know of then of Tims, rebuild that was be to issues drag, in a
that terms interesting below it's sales, for that that, level same-store So Street in are numbers still of XXXX below the XXXX. of
pass seems on? when be Do agree conservative you that has you in per higher should if sales it it. think XXXX And about So Canada you in unit that reopened? Thanks. it I'll
David. Thanks,
rolled probably of that plan making focused us on executing as for motivator. our we're I visitation, out, the consideration the as that was question, And I'm And fronts, breakfast as a And through, brewers last the progress still food in driving -- conditions over, breakfast intended. to one making, months, the with in of the working of of mentioned but have with moving now. don't progress progress to going into coffee, particular, the key all do. over top working XX Dark improvements And with product importance a we're -- as about that. priorities is we in particular a work macro is there's we're excited well still on quality, times the Roast we're Canada obviously I lot couple the into the second mentioned, we good On not get when we're plan fresh that food in that
of it's critical. a Freshly I strong top big, move to And in so in was making, that. the getting decision quality when at couple, us better food with in a we customers to at for our motivator. addition of food that the we're two was cracked years for big is that, coffee egg we very partnership Canada, But and it's is from And a the over in an driving restaurant get as standpoint, well think innovation mentioned the February, standpoint. progress when as a certainly plus from and initiative up taken team the list us, we a launched needed work list in the the The at that Freshly beginning from numbers our the and marketing food the in the at well that I place Tims mentioned Eggs owners sometime to supply saw February Canada I we end our or as category. Canada standpoint, of Cracked operational by breakfast -- and from is as great product that in chain
So the food the breakfast, side positive business and a of growth. year-over-year, two-year delivering comp
in of early year-over-year overall March. growth So enhancements product, days category. food in and that weeks also the of saw the offering daypart, positive in that's And growth really launch then few was breakfast encouraging our in the the last morning of we driving that quality
But just for weeks progress Canada March the was the basis. early daypart, it baseball in analogy, our full So make negative progress month, game low-single-digits innings saw the for it's a but as here on again, quarter. two-year an we and but working hard to on at with the last full franchise teams in in using days March, highlights of owners it end of few it real which wasn't still the our here. a for we're that the early basis of We're year-over-year the we're
so much question. next We'll for the So thanks to go one. the
Dennis The next question with Please Geiger comes ahead. go UBS. from
on here. a ask all you bit and good And quickly the in U.S., number initiatives that, color to year-in, to a consistency working of market think that. with how I highlighted the lot quality for Burger digital kind and to and across a And experience. year-in the over U.S. to brands, Great. years breakfast, wanted the but to so it's you gains start thanks It promotions compelling several performance, can these José from helpful. share bit a seems last uneven insights of well, across a about like, with seen initiatives brand of from focus the chicken, difficult more little wanted LTOs really have ask King Thanks. certainly of related we've drive definitely probably with
now lot greater there? the that outline of if and can annual So you you curious kind of a for that's focus, of going strategic of points as sort consistency a momentum this forward, part of highlight these the roadmap drive brand if
the the some really made talent build marketing good question. team, is on here for to that the the Dennis, the about changes plan. idea Yes, second definitely a they're work build with the then team a that everyone's making solid us planning U.S., we in behind. executing terms thanks the to Hey, the have in the long-term meaningful they're point and is the collaboratively helping we the team doing and feel the we U.S., We've progress plan which franchise in all in of owners believe and in,
haul. sustainable long-term long drives the meaningful over is in confidence to the there's plan something growth our build there So that plan, and commitment
progress improvements per levels front. saw was that the in we in history. dollar having balanced But of restaurant; a your we're that the question, front terms I is good We're reaching on progress that approach. of quarter and of also, And remarks first we the the the a value that driving the we've importance nominal balanced it's and as some approach, monthly as part of I And visitation. big progress helping sales prepared over it's the obviously And close balance with we us well quarter full-quarter really menu. years, highest the quarter terms in good in versus but is a industry. good in the that times excitement me the value. which seen implementation, having year-over-year on Burger think in King saw is you've execution we think short-term, first that recent well the premium say was we're shared as making then in offerings my really heard particular of our the multiple A as gaps a core, made with
innovation, Digital channels in digital, good was Loyalty, as well. some time excited launch to I the we're will encouraging service And came reflected more that quarter in regard, In work team, as I modes. the a in meaningful progress those saw are move time this with think about the BK which so had the French breakfast, we And that also innovation, come over And think back back. made of the popular, well there's Cheesy quarter we've offers lot got, past. the and into we've and the other there be limited we available Tops on as Toast that Sandwich,
business we've soon. Also a all building hand-breaded a is coming We've remarks really sandwich, which work for being my of well. the of on near prepared us. but for The so they're back terms for importance of important to This time. an in had bringing location for for our customers because it massively impactful. chicken not excited, launch I is it in quite the franchisees think was be exciting And sustainable chicken we're you new a long-term. very done mentioned it's long-term. rollout long is And of us, I This category a improved will something deliberate executing are offering, the our and
make build think plan So short-term at and transactions, a low platforms. sustainable, And visits strategic of is trying that's shift that mentioned a on the us drive see it breakfast, I and the -- King time. do it over to promotional approach, strategic meaningful activations for importance investments breakfast, the I that Burger you'll why on to our you'll push see meaningful we're from business, how long-term to high a making long-term behind
way to early about the long, progress got but are, days, where long we've go. and we So it's we're excited a we've made
Dennis. you progress. our keep on Thanks, we'll So posted
next comes Glass from Stanley. with The John Morgan Please question go ahead.
you you're a pieces. as it's in clipped insights contribution Coming that's progressed, and Tims Thanks in the resonate? you volumes some Can the that to positioned comps. and metrics seeing you're just is obviously and are the can they're up flipped checklist? understand and That's And over about the investors. of so to opportunity how up? Tims positive, checklist, you've other is what Canada that there's much? back how or offers, differently this and just share, digital getting of China some bespoke around so of business. shaping how is morning. just good unit One it's world, contribution the the the there external unrelated talked the that growth excitement and frequent of seems buying If from If just just two maybe be just a can makes we remind on momentum better And negative, some digital sales past, what because was if brand customers to the on us Tims if dynamics customers side that how any those the you are experiencing, transactions inside XX% we more digital that
thanks, Yes, question related Tims to on Josh and Tims come digital have Josh? John. the in I'll touch then I'll China. back to Canada,
that around that's probably and allowing we question about, that growing time, directly seen Tims. the of I engagement I with biggest Yes, remarks able the have more that, sales been on part that would One of in has think been as drives we focused big lot contribution good I really are We've is with are on for to the a frequency. think morning, more our more on Thanks what Tims to positive. targeted. brand time, Program, that, the of I job say be loyalty of we those program say, that mentioned engagement John. done, a over trying base teams I or with think more those on then which I questions the Loyalty of referenced the you to the growing we've the driving what the doing as that like program? been the what them more some do I more that this remarks, offers working to more consistently kind be both think driving of, offers and we registered, asked and of And the more then making consistently over as in users earlier getting app. And is And things effective. is to great targeted, the we're check I'd the that, frequency? Are we're is and make the more
of us of Win and Up of lot people game the segmentation Roll seen games to Up often a more our see to different actually the to you've can So digitization like to that's we apps things back come driving engagement of come doing And the more time. Roll the guests of us play kind Rim our guests, in more an with existing often, more visit and coming see and and that are Tim more I goal with is guests think back the often over more back. the a they're engage And more and drive us brand Hortons frequently. engaging frequency lot to the
So more things some where progress, where think the been we've we think over making focused those really do and of biggest can are we're on we even time. that we
Josh. of Thanks, into China, it. the we're question progress years excited really Tims remarks, there. two prepared only the John, the We're as I on mentioned about in
as first brand at or there's not And and things restaurant connects of Chinese But when the point, Interestingly Canada highly And opened the business. have a going but our hockey in built enough, in well. China of Tims continue brand with the Tims businesses and we we're but of reach Obviously, a things we're consumer in has now; than the from interest more investors restaurant, the XXXX. at for we for that started, we to so So be set on commitments -- and the China, relevant AVs Canada or progress positioning not important locations tremendous, we're these end like We're the and beginning there. growth had not QX as sharing brand, we for double on details our about we've cutting to hockey size XXXX. aren't on the targets a lot business. the very business XXX the here Canadian very, well starting first to to announced to of the as of sorts concept. that journey players, necessarily the partnership the been the XXXX, players back we broader at
really doing transaction being in with the micro resonate with been are quality Chinese business Tims of and and is bunch awesome it's that we've convenience are on the with and experience, well and research Tims cool be for an of build with the in a really services. a those, good possibilities we've seen things the to a we've team our modern and So Local every of example, day the customers product, of there every very what built, of that done design connecting the good China elements and forward-looking consumers it's the digital the able progress job think quality really example that our can that internationally, UK. with high-levels with we've I
forward brand growth the We Middle Saudi have plan. a with a Tims a breakfast, think Arabia we it really opportunity offering baked strong we East, have coffee, and as doing with for digital game the for business for Tims for tremendous in goods and long-term with great
in to years nature early we're given long-term the So there progress, think for well the the growth to business see we of coffee for it's and China, of question. about days we're excited growth Thanks come. a the positioned but
Carril from RBC go comes question Capital Markets. ahead. Please me next with The Chris excuse
for Thanks Hi, good morning. taking question. the
this you trajectory; frame both to could maybe help how about if us better trajectory relative up back? Thanks. ramp Burger should globally? and years about the brand, ahead thought U.S. understand growth Popeyes, the King So in you maybe back as we And of on recently development how announced the can you're where of long thinking how brand development think the agreements few you its for a the to about its
for the question. thanks Chris, Hey,
the around think of given the excited reach XXXX build of especially power are most still brands and circumstances. XX,XXX about new the brands the now business and that back ones of it's to our and to over we the the we to the an incredible when franchisees go that eight amount window. existing have shared XX-year and in space our ones resilience in our super world to thought ambition and to three restaurants open important think We I difficult an business
of time. and a probably business performance the and solid, environment economics journey, seen anyone's value this the the of ever really create them complicated ton unit that the So them for confidence gives business most can over is
big business. part went We from talked the things we've years, several size internationally our excluding and we business doubled a One development something growth the journey the DK just think X,XXX about is, of of the obviously XXXX. that U.S. been from XXXX restaurants important to our international our has is over I XX,XXX from under international for last to like of
of opportunities competitors in teams joint years. there and So we markets that venture seen growth of many was China, going versus internationally, ground over is we tremendous we the the tremendous achieve room great U.K., we reality we we've But big of have amount Brazil, Germany, growth made still there but time. of have great partners where forward. growth, the great where the and we for France, the these a a the Spain, last That a because stretch still that. to And eight during are markets of our for of put had have growth doubled was, in master we ton franchise benefit partners internationally in place. agreements
Popeyes, potential in build and a think then Burger brand the the meet and even we I franchisees, We're with partners, the experience to UK, and internationally Popeyes. what's Tims the forward to driving in about India, business structure. master process. to the U.S. the it's that's the momentum And of with in has approach the Mexico, right in right work obviously, the over we've selection Popeyes of how beginning right the the thinking kind trying had years think As the internationally. we business goal even here, brands what to the the and And we're obviously. and of And something to of of the this our last it's it's a with There's our eight Chicken the the led for in lot and drives look in excitement earlier partnerships has is it's momentum come. grow, But and business of interest for years, similar of taken learned BK internationally. and the And size the it to and -- of relates our Tims days, King, in internationally double we've important us. not lot place the long-term, capital short-term to in Saudi, meaningful trying we grow seeing the incentives our just and ensuring the have here. teams That's Sandwich we're
Sandler. Piper ahead. from The with next Miller question Nicole comes Please go
Thank transaction. impact morning. lens and you. the I of helping through checker digital Good to was understand the average behavior consumer
So could you. the or then it by concept last brand, transaction? amount, landed on where how each share why? and the average you And higher dollar as enter is check Thank year lower you at trending please same you the or year
we've mobility breakout traffic Nicole. in Thanks, markets delivery more the we and XX impact don't last and seen In Obviously, we've the -- people, people drive-thrus, globe. an more check internationally. growth our general, across months performance through well channels, seen for of really transactions brands COVID off-premise the as average in home in check dining or as on what
value transaction in here earlier my on BK, in quarter As on first U.S. the menu. we've I remarks in progress good in focus mentioned with with our dollar the made growth the
ask there's it as I digital well. a probably maybe to Josh by brand. think of is aspect there question -- comment on that I'll
see this of service my between topic. know engaged our just and at that I would earlier, do little some couple digital of say different some as guests. they Nicole, of our mentioned a in couple bigger heard thoughts to of you non-digital The between, digitally a see I that March things that we in-store fans. modes, on high-level of bit tend loyal tend more some channels. generally, be they're Even we a tend to I with some our they to guests, be our of
a obviously bit service check service higher bit to frequency of different see often. obviously, check more bit guests so coming mode the higher then based little much but guests, the more in So little they they profiles our tend bit to delivery a mode, a a any And are on tend profile. them be a little
that and two would I the in things out those different the channels. So to check between dynamics point transaction you of terms probably are
Thanks for the question.
And Bank. Deutsche go ahead. question from Baker with last the will Please come Patricia today
with has you to you're the great breakfast practice. return much discussion know on good Thank very And to I and us. but early, person offers? Or Is just of any egg I'm evidence have cracked customers that the they may everyone. to shared morning, lacked for offer? curious Thank returning what be have Tims the Are see you customer? the you customers you be seeing about it's that have some sharing may want It traction. buying just may you? for this that you sandwich? particular breakfast And other that you do that new gaining replacing what having
progress encouraging this for eggs. was at we launch question. days that fresh the information we're early with shared with or of cracked Patricia, It's the with data is Hi, the the point thanks -- had making. The update I which the the
through of back Tims always at But that have adding loyal I'm frequency digital higher with sandwich. mind. confirm But from chicken we've seeing breakfast sorry maybe a guests higher coming channels have we I anyhow, sandwich digital that eventually a as data seen in coming we've a chicken frequency sandwich sandwich breakfast that and my think that sandwich. guests chicken breakfast our I are seen data loyalty our a well. loyal adding and we're in and
quality So that there's we that coming existing terms really and of right It's offering encouragement Tims. in in the there's high fresh were days. And egg introduce and that bagels, gives for And developing the a confidence just more opportunities beginning customers to seeing to from in other early we journey. as add customers. think product. think frequency breakfast well really cracked on the another of We've us we path new started at we're the to
well. it about question. into other Tims for we're forward with about start excited more much so the to and and for the drive progress, for excited dayparts Thanks the to So customers looking continuing as breakfast
José our remarks. over question-and-answer turn concludes session. like closing Cil back to to for any This conference I'd the
saw from and to growth guests Tims the that, at this experience and all while produce at and brands to us With to everyone standpoint, back at growth to beginning return Win price. impressive results up questions contest. a from programs of quality compelling as as home our to we three high see start running. Up loyalty a On a pleased highlighted business unit joining efforts all we We're to such top their delivering morning. foods personalized for excited the see discussed more them what by to build year strong Roll our of brands, digital markets, Thanks to a for three and we're are engine for the craveable our our we get development
stay here RBI so to to there. and on at look come. in Have made partners more building and forward the day Our everyone. world far we've next our around and franchise to out the a quarters Thanks sharing continue teams I working hard progress great the safe are
concluded. Thank presentation. now attending today's conference has you The for
disconnect. now may You
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