Stock Market

Restaurant Brands beats Q4 profit estimates, reaffirms long-term targets; stock up

Investing | Wed, Feb 12 2025 11:29 PM AEDT

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Image Source: Sivastatz

Investing.com -- Restaurant Brands International (NYSE:QSR) shares climbed more than 3% in premarket trading Wednesday after it reported earnings that beat analyst estimates and in-line revenue for the fourth quarter.

The parent company of Burger King and Tim Hortons posted earnings per share (EPS) of $0.81, above analyst estimates of $0.79. Revenue stood at $2.3 billion, in line with the projections.

Restaurant Brands reported an adjusted EBITDA of $688 million for the period, beating the $677 million forecast.

"I am proud of our performance this year, reflecting the strong foundations we're building across our businesses and the dedication of our teams and franchisees who are executing the fundamentals of quality, service, and convenience with excellence," Josh Kobza, CEO of RBI commented.

"As we look ahead, we remain focused on thoughtful marketing, operational improvements, and modern image to enhance the guest experience, drive franchisee profitability, and deliver long-term growth for our brands and shareholders."

For 2025, RBI expects segment G&A, excluding RH (NYSE:RH), to range between $650 million and $670 million, with RH segment G&A projected at approximately $100 million.

Adjusted net interest expense is expected to be between $500 million and $520 million, while consolidated capital expenditures, tenant inducements, and incentives, including RH, are projected between $400 million and $450 million.

The company also reaffirmed its long-term financial targets announced on February 15, 2024.

From 2024 to 2028, it aims to achieve over 3% comparable sales growth, more than 5% net restaurant growth, and at least 8% system-wide sales growth. Adjusted operating income is expected to grow at a pace equal to or faster than system-wide sales.

This article first appeared in Investing.com

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