Deferred income taxes, net 1,309 1,296
------------ --- --------------
Total liabilities 18,310 18,661
------------ --- --------------
Shareholders' equity:
Common shares, no par value;
unlimited shares authorized at
March 31, 2024 and December 31,
2023; 316,382,439 shares issued
and outstanding at March 31,
2024; 312,454,851 shares issued
and outstanding at December 31,
2023 2,076 1,973
Retained earnings 1,640 1,599
Accumulated other comprehensive
income (loss) (747) (706)
------------ --- --------------
Total Restaurant Brands
International Inc.
shareholders' equity 2,969 2,866
Noncontrolling interests 1,866 1,864
------------ --- --------------
Total shareholders' equity 4,835 4,730
------------ --- --------------
Total liabilities and
shareholders' equity $ 23,145 $ 23,391
============ === ==============
RESTAURANT BRANDS INTERNATIONAL INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows
(In millions of U.S. dollars)
(Unaudited)
Three Months Ended March 31,
-----------------------------------
2024 2023
----------------- ----------------
Cash flows from operating activities:
Net income $ 328 $ 277
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation and amortization 49 46
Amortization of deferred
financing costs and debt
issuance discount 6 7
(Income) loss from equity method
investments (3) 7
(Gain) loss on remeasurement of
foreign denominated
transactions (23) 8
Net (gains) losses on derivatives (41) (34)
Share-based compensation and
non-cash incentive compensation
expense 46 45
Deferred income taxes 18 (28)
Other 7 1
Changes in current assets and
liabilities, excluding acquisitions
and dispositions:
Accounts and notes receivable (6) (8)
Inventories and prepaids and
other current assets 7 (20)
Accounts and drafts payable (46) (81)
Other accrued liabilities and
gift card liability (175) (123)
Tenant inducements paid to
franchisees (5) (6)
Other long-term assets and
liabilities (14) 4
--- ------------ ------------
Net cash provided by
operating activities 148 95
--- ------------ ------------
Cash flows from investing activities:
Payments for property and equipment (26) (18)
Net proceeds from disposal of
assets, restaurant closures, and
refranchisings 2 4
Net payments from acquisition of
franchised restaurants (23) --
Settlement/sale of derivatives, net 16 14
Net cash (used for)
provided by investing
activities (31) --
--- ------------ ------------
Cash flows from financing activities:
Repayments of long-term debt and
finance leases (24) (32)
Payment of dividends on common
shares and distributions on
Partnership exchangeable units (245) (243)
Proceeds from stock option exercises 39 6
Proceeds from derivatives 28 29
Other financing activities, net (1) --
--- ------------ ------------
Net cash (used for)
provided by financing
activities (203) (240)
--- ------------ ------------
Effect of exchange rates on cash and
cash equivalents (4) --
Increase (decrease) in cash and cash
equivalents (90) (145)
Cash and cash equivalents at
beginning of period 1,139 1,178
--- ------------ ------------
Cash and cash equivalents at end of
period $ 1,049 $ 1,033
=== ============ ============
Supplemental cash flow disclosures:
Interest paid $ 170 $ 163
Net interest paid (a) $ 115 $ 116
Income taxes paid $ 87 $ 61
(a) Refer to reconciliation in Non-GAAP Financial Measures.
RESTAURANT BRANDS INTERNATIONAL INC. AND SUBSIDIARIES
Key Operating Metrics
We evaluate our restaurants and assess our business based on the following operating metrics.
-- System-wide sales growth refers to the percentage change in sales at all
franchise restaurants and Company restaurants (referred to as system-wide
sales) in one period from the same period in the prior year. Comparable
sales refers to the percentage change in restaurant sales in one period
from the same prior year period for restaurants that have been open for
13 months or longer for Tim Hortons, Burger King and Firehouse and 17
months or longer for Popeyes. Additionally, if a restaurant is closed for
a significant portion of a month, the restaurant is excluded from the
monthly comparable sales calculation.
-- System-wide sales growth and comparable sales are measured on a constant
currency basis, which means that results exclude the effect of foreign
currency translation ("FX Impact") and are calculated by translating
prior year results at current year monthly average exchange rates. We
analyze key operating metrics on a constant currency basis as this helps
identify underlying business trends, without distortion from the effects
of currency movements.
-- Unless otherwise stated, system-wide sales growth, system-wide sales and
comparable sales are presented on a system-wide basis, which means they
include franchised restaurants and Company restaurants. System-wide
results are driven by our franchised restaurants, as nearly all
system-wide restaurants are franchised. Franchise sales represent sales
at all franchised restaurants and are revenues to our franchisees. We do
not record franchise sales as revenues; however, our royalty revenues and
advertising fund contributions are calculated based on a percentage of
franchise sales.
-- Net restaurant growth ("NRG") refers to the net change in restaurant
count (openings, net of permanent closures) over a trailing twelve month
period, divided by the restaurant count at the beginning of the trailing
twelve month period. In determining whether a restaurant meets our
definition of a restaurant that will be included in our net restaurant
growth, we consider factors such as scope of operations, format and image,
separate franchise agreement, and minimum sales thresholds. We refer to
restaurants that do not meet our definition as "alternative formats."
These alternative formats are helpful to build brand awareness, test new
concepts and provide convenience in certain markets.
These metrics are important indicators of the overall direction of our business, including trends in sales and the effectiveness of each brand's marketing, operations and growth initiatives.
RESTAURANT BRANDS INTERNATIONAL INC. AND SUBSIDIARIES
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