Thursday, April 28, 2016 10:25 am ·  0 Comments
Restaurant Brands International announced its first quarter of 2016 net income of $119M on April 28, 2016.
On December 9, 2014, Tim Hortons share holders approved the acquisition by Restaurant Brands International, which at that time had controlling share of Burger King. With the purchase of Tim’s, Restaurant Brands became the 3rd largest fast food company in the world.
In January of 2015, a substantial number of Tim Horton’s staff were laid off, which created concern that the Miami based company was going to gut the Canadian icon. However, with the announcement that Restaurant Brands International agreed that Burger King’s Head Office would move to Oakville, Ontario fears among the staff and shareholders subsided.
Tim Horton’s Restaurants opened 25 net new restaurants for the quarter and reported restaurant count growth of 3.2% year-over-year, ending the quarter with 4,438 restaurants. Tim Horton’s comparable sales increased by 5.6% from 5.3% in 2015, and system-wide sales grew 7.9% which was down from 8.1S%. RBI declared a dividend of $0.15 per common share. All dollar amounts are tabulated in US dollars, and considering the drop of the Canadian Dollar over the past year, the results were perceived as favourable.
Tim Hortons performance was driven by continued strength in beverages and grilled wraps as well as successful product launches, such as the Pulled Pork Sandwich and the Croissant Breakfast Sandwich.
Restaurant Brands International Inc. (“RBI”) is one of the world’s largest quick service restaurant companies with more than $23 billion in system-wide sales and over 19,000 restaurants in approximately 100 countries and U.S. territories.
Restaurant Brands International trades on the NSDAQ. On December 10, 2014 the stock started trading at $32.98 per share. It reached at peak in March 2015 of $45.03 and dropped as low as 30.74 on February 9, 2015. At the time of this post the quoted price for Restaurant Brands International was $43.28.