Restaurant Brands International Limited Partnership (RSTRF) 30 Apr 242024 Q1 Earnings call transcript

Good morning, and welcome to the Restaurant Brands International First Quarter 2024 Earnings Conference Call. [Operator Instructions] Please note that this event is being recorded. I would now like to turn the conference over to Kenny Peck, RBI's Head of Investor Relations. Please go ahead.

Thank you, operator. welcome quarter Brands ended and for earnings everyone, first the March morning, to International's Restaurant call Good XX, XXXX.

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RBI, excited plus businesses, Thank growth plus growth work the and X% we X% have and good you, great Josh, really X% growth, sales five morning, income to adjusted of amazing today. deliver and X% sales here on least average next It's system-wide At our I'm to outlook at each to with of long-term them be plus five net over growth, years. restaurant comparable on everyone. operating

and slightly, For income and X.X% organic this few line growth adjusted year-over-year, global adjusted system-wide the with X.X%. said items quarter, walk were adjusted grew now. That sales quarter. X.X%.Organic there a that through which grew sales one operating another in first largely declined our you EPS results, were operating impacted income System-wide I'll

estimate over to $X.X impacting from conflict Burger benefited King million $X February which point consolidated 'XX, basis in offset headwind of expenses QX in largely consolidated King headwind we by the the Leap by POPEYES the tough almost of in debt just from point entirely weather, $X.X of quarter. sales in net the that bad Day Burger million XX and we Middle U.S.Second, impacted which million XXX recorded compared comparable basis a a basis that and East was First, ongoing points, XX

to chain supply business expenses at segment of Tim relating primarily between cost to and international our partners. international in 'XX royalties QX sales Hortons coffee Our certain our split sales were

including support acquisitions slightly, acquired share our company to were to well POPEYES The in year-over-year items efforts.These associated primarily expense compensation-related segment per now primarily $XX increase finally, in decrease adjusted compared as at of increase operations development, franchising an income restaurants increased per tax adjusted QX and million to year-over-year, last expenses per an sales increased headcount in million expense and offset of $X.XX adjusted driven in decreased reflecting of higher system-wide EPS; year-over-year earnings by was with and due $X.XX September organic 'XX X.X% of strong approximately XXXX improvements to share interest higher EPS this a total January G&A in XX at and flowed XXXX King, share restaurant benchmark by added a underlying to growth approximately items. restaurants Shifting rates, share our through our Third profitability restaurants refinancing XX% as year. debt.As to and to Burger XX QX the discrete which the impact of impact and tax benefit noncash of reminder, per U.S. related $X.XX year. included adjusted net $XX

Our of has tax X adjusted quarter included rate on point compensation, approximately benefit outsized timing our rate tax quarter. from equity-based effective XX.X% this impact was which the during the a and typically an first

Turning of and we flow cash generated us. quarter year free QX $XXX of seasonally the now to million seasonally smallest quarter, this cash cash capital flow is the And for allocation; flow.

billion approximately of $X.XX and full our ended $X share target This $X.X which returned declared over year including available through XXXX. spent QX X.Xx. for the leverage for QX per shareholders ratio of million liquidity cash, $X.XX was on of common year our quarter, with net related of at share we dividend, investments.We full of million capital we a the billion, $XXX with $XX unit We Reclaim approximately per and Flame to

forma a our clear year, for to end net Carrols. of We reaching leverage the of acquisition this by pending pro have Xx mid path

vote quarter add-on contingent Carrols, this funding on on Meeting an Loan $XXX of secured scheduled speaking Term close. which our on already a for of as with complete XX.We've also Carrols Shareholder to May existing the million to merger Now track our to acquisition B, acquisition we're is

segment those intercompany we King you as your fees Carrols rental with eliminated looking For of Burger that and models, a Carrols report consolidation. franchise to incorporate upon Restaurants to be will separate into plan

be become is capital begin the this doing an the especially how priorities. guidance segment to the XXXX allocation the in refranchising and in with and keep Carrols goal business untouched we Restaurants long King our will important term. run future.I'll will consistent over provide as This relatively now Burger update Our on

identified and this now equity-based $XXX of areas changes As excludes $XXX represents guidance $XXX segment about reduction a segment of due reminder, opportunities business. This in a between guidance, Carrols. variety $XX million from million. including expect XXXX our impact and G&A to personnel G&A a compensation We million, $XXX million across other the our prior between million largely and

tenant flow inducements incentives, to this XXXX.Of We around to and compared million roughly continue reminder, less which, and be XXXX incentives $XXX other tenant inducements will CapEx, amount, a working to expect consolidated than remodel as million half $XXX be in capital. through

quarterly we to $XX depreciation expected ramp and QX million 'XX. course increase XXXX around million over $XX from the our of amortization Given high of inducements, in expect CapEx will in mid- tenant towards the segment QX and by range

our it As continue return through share dividend to in to invest repurchase returning will assessing our allocation, appropriate. capital business when shareholders while to and opportunities high opportunities relates for capital we

Over the Xx.Where this net leverage between and ultimately to will conditions. maintain we market land depend Xx on we plan range in long-term,

business Tim's. bigger line at you, don't three, businesses much I'll one, a always towards business sales.And CPG long-term shared for. I'll the in with the our what reiterate and guide number at five feel said, February. what property streams are And why it towards on that leverage. explicitly system-wide on results. at meanwhile, That next two, It's And AOI confidently our outlook, Burger is global are: Tim's. can we what striving we achieving our few as relates not average. Finally, achieve Tim's King. have been I'd Josh number we we're This over working question we've like our our supply in we earnings didn't we to those to Number address guidance remind chain asked years grow

the to deliver even less returns coming sales the each over as other look dollars. be with areas investments closely quarters.And segment forward I'll over working of of and For around gross Hortons hand cost it past I their our greater reference, total we've with few teams To in XX% XXXX, Patrick. wrap the of of profit up, our our I'll business Presidents and all CPG to in working Tim Tim's and sales sales been XX% of drive over segment represented leverage scale that, of business making the we with world years. to you from roughly

Sami, pretty everyone. Thanks, I say a I the win back quarter, good good a look that I'd it morning, take step quarter was and column. When I'd and at put solidly in the

Tim's Burger execute Tim's share. and see and in beginning U.S. of time As our Canada U.S., having right Axel Canadians service. right POPEYES we're teams to food been market Canada, love with plans and several clear reasons King beverage forward, the performance markets path stunning. from the and in franchisees.The international to importantly, has amazing the Tim's aligning in And have the way. the to with offerings our won giving team more growing in with driving the strongly seeing a to even of the the benefit just them We're the in and keep business benefit right

segment the affecting know the top has the China. in that really us especially broader we few International industry. With unlock potential resilience said, the great like whole shown Our over exists to see environment past considering line I'd quarters,

million billion you put than the today's track $XXX have we've brand to more in on results our consider King coming towards $X $XXX in of about portion small opportunity this to operating more and say At reimaging committed efforts. the we co-investment is very Royal our a significant.We'll Burger of it's long-term when Reset million than X% less income, addition know quarters. total to now adjusted RBI investments there U.S., restaurant equipment today, the the While right

impact marketing that towards talking also commitment million not the $XXX and $XXX brand [ billions be this, together like think it's our Carrols. to be accelerated and will of system digital remodel dollars about of When pretty the ] addition, we million on I'm acquisition well. as the in and important investment.And as investments billion making we forget Another will with franchisees $X spectacular. from seeing a work we're I

in place, team York lot by to great you The few all better. and I line shared change, in our commitment marketing a Tom, finally ago brand we franchisee of months have the positive in been $XXX,XXX. driving to sight question a right New is that of a U.S. who's past driving with getting you profitability the shouldn't We have getting a led

the had.We the has now biggest across a operational U.S. the path ever on have focus fully modern to XXXX. consistency We that brand have nearly by image be

Our than average franchisees they are their higher now profitability ability have our drive the strong know to and on even strong businesses. for franchisees a to path profits

the team from say about Love. it's old-fashioned that's starting POPEYES Now implementing to to understands in unlocked here. unlock the kitchen good business, early brand just what changes the down coming We're franchisees, potential by journey benefits still the all on operator. clearly members to loves and we'll as is I'm operational and involved from execution, I'd guests a an excited for get best and what easy-to-run Easy is the make chicken really Tom conversions.Jeff fried the that its pretty amazing point with

just are is to know our in this focused brand, and a brand kitchens. At capable FIREHOUSE, more again, give this growth access of helping is we're development we working our the execution unit of. to So unlock matter incentive people the programs

achieving benefit the we the for all that.I'm this long-term, Mike and we've and that than been the bet shortly see growth the of a confidence expected and optimist being would by XXX% team my digital of is of point that challenge my still Josh end an achieve will making development the decisions brand, think slower a just wanted from also right bit Part we'll I on is Mike but little in of made. XXXX.

majority an international of sales amazing its channels. through Our has milestone. digital business the now That's

take to team in and for value place. this team your I'm February all bring all Finally, together, deliver his has questions. what that let's I'm confident drive the March, as our about long-term table. laid you Josh you guidance team this saw stakeholders.With out and extremely in for excited we now the that, in will they against

[Operator Instructions] is from line apologies. And Dennis of question Geiger. first My our today the

is Geiger the The from of UBS. first line Dennis of question

wanted notable the of the driver the basics Difficulty] the in back the the main and your maybe the I'm well, of to continue continue that seems anything as see out strength the with It underlying macro, impact progress Tim's any have customer brand. little strategy. to like to call to performance. of Canada about and I sustainability may [Technical more the wondering on as a to momentum on how that plans could it That's resonate. of talk to against gains. But just outlook to you you relates if relative

Dennis, Thanks good question. Josh. morning. for the It's

we're mentioned, And think, the time you really with we for performance mentioned, some as sustained now. it's I pleased at quite As Tim's.

whole positive And solidly was to I Matt, which much so you've there franchisees Axel, our traffic, working momentum the improving and good, and team Hope, working category. all well seen on really with in same-store the just in I has that's up quarter basics. the are think and think be business.I really the continued the the think why both sales

really happy we're there. So

breakfast mix. out the quarter do the doing about building think food those food I offerings and and have the still pizzas that you've options with do. top some opens think pipeline the us more think to in up we we're a business Tim's and allow on And a can They're lunch, but And you It us results pleased going even to PM even to continue of things. coming more business. to the us our the I in Flatbread on the of our amazing over I we innovation of great day later part we've more seen Merrychef for so that time. just recently saw building things into of in with that at lot it cold and Ovens.We're deployment business, beverages far, growing an build more talking been of creates

pleased they're where pretty year. teams the of work great I'm with and rest for what doing. we're going So the confident we're the Really from

today & Bittner question is from next Oppenheimer Brian Our of with the line Co.

through that be will $XXX XX% should co-investment.And from in then where question the the exciting million get acquisition? as Obviously, And segment. is laid to you're it you X,XXX you get this that XXX remodel to another acquisition. you'll through to the with want to you Carrols franchise work million the U.S. path XX% the this a or relocations exactly batch closings on impactful remodels the remodeled. talked portfolio about getting path as be? King Burger King as stores morning XX% stores this be announced morning to to remodel the Carrols see of will Burger And You XX% the to you'll expect It remodeled, another to you've those spearheading new at reporting these out remodels we $XXX

maybe I Hey in Brian, if I'll expect of those reverse order, sizable batch business. take that's in another the don't closures okay.

And gotten to past talked stabilization the about we've numbers. that. Burger which a store see see reflected in you that in we've the outlook, think U.S. I base bit our King

scope fairly and remodels So impactful I that's the to be, first did what remodels should years. XX part. of in prior And impactful.We're over larger these the expect all terms doing of we in be the compared there'll general remodels how do that

those next how three in So the image. of talking will sales. numbers a come think that on to consumer excited and been I'm other And the elements about impact this we've Sizzle been impact over seen have we've Garden big I haven't more you doing, of you yet, on of that The really years thing but remodels image and the prior about really the tend that all is the in Grill they are the our and together.

to flow. you're importantly, lot But look, new remarks.They in a of we incorporate better during They're they a I they beautiful. awesome really guest it perhaps. think the see so look even our starting and digital and some elements night new at just those prepared mentioned day, Sizzles, And of

So they're and really interior built kitchen. all nice all intentionally great kiosks to in a layouts have with the beautiful drive-thru to have and flow

of elements there's to the so we I good really the think come duration you that think in that the that Sizzle the far. to of uplift haven't results backward-looking get a lot seen the I program So together are be over going different for

add the get point that. when your from a get one you of which thing majority is I'd catalytic vast you a restaurants are that, where effect bit Brian, on reimaged, of to the

path to And doesn't so it looks looking reimaged great, around the last effect that this still on on advantage. there's effect, Burger system XX% overall. ever to you're is King on brand all are of ideal.And show effect where was to important virtually bit the our But franchisees driving King, real great commitment that restaurants getting past point real another great a all positive but you to great-looking has looking the you a one the to getting a see going having I a under restaurant. this so get to but right? has So not your and Burger to when it restaurant mean reimaged, we're there a thought dual to going look our we out today every great, get visibility leg give for,

of is next Our Evercore of David the from line question Palmer today ISI.

there well. the as theme probably was aware, food a that's perhaps how the any to cohort fast progressed on Tim was that in for the very income strong that we be if slowing and color given another in negative the to U.S. challenged quarter, quarter And adjustment quarter. consumer some Hortons, seems this call that and market?And you're certainly starting there question the macro an Canada. Obviously Tim's seeing hear not lower market food Could are Canadian certainly about U.S. the A things You in or wondering about a through in is fast but needed? what value a is industry highlighted U.S. I'm need how access provide you headlines down are today the Canada

of every monthly fronts. improving Dave, kind That's value share think because operations. which morning intra-quarter we're that doing that best I that executing can the Canada across going with we're much. the We're and marketplace. market. we're like on think in great. all the question. effectively money Tim's in taking get market, competing the the we Hey of is day And pleased for we're is rankings really what good already share in into we're We're thanks What have focused too We're And dynamics for very We business. not to is I performance the the convenient.

in We an about really value you're an think special performing into well already Tim's. has very us probably a That and positions well, if relative business tougher the provide a been basis. important absolute on something that going the that's on that's best And I part market. consumer environment. especially so of why

Danilo is line of question from next Bernstein. Our of today AB Gargiulo the

your maybe decelerating it accelerating of are you like mean a have looks franchisees And on I even greater environment. line in increases. brands profitability sight

noticing are incremental the franchisees wage due minimum increases. some light We increasing Canadian the pressures of cost the to in among labor

stores elaborate costs you upgrades, So to the these contemplating maybe and of equipment on extent on are what operating maybe like It working compromising sounds alleviate quality? there food on but pressures is can in you some the the you're coming. without more really

Yes Danilo, thanks question. the for

terms that In of that. what and outlook business Canada, for the and terms seeing franchisees, of our translates we're P&Ls performance in in then how to

last and last quarter. been As profitability was both you've And announced seen, our that franchise good first very the performance year significantly year. into has store up sales same we

favorable growth further profitability positive the Tim have what we of outlook the plus and and for throughout terms Canadian commodity a sales XXXX. actually sales the of we in seen, see very some already franchise that outlook movements, Given course Hortons we've

that we the for profitability. outlook about the year pretty the good full franchise and front progress So feel both in QX for on

line Ivankoe J.P. question of next Our Morgan. is today of John from the

to Josh, prepared wanting in remarks, value. you on wheel not the recreate your mentioned

would menu an to So kind wanted you Burger sense to some combo forward or income talking perhaps are some least but and consumer very to as I that the perhaps as King explicitly you've points industry, in industry to a alluding in of what as to mean, done involve giving pre-COVID also communicating type I explicit be a of that Whopper meals mean rotate things middle-income versus might be trying the to to opportunity you going has them?So did as we world way, back around cost I way, meant. some stance David and more U.S. your think menus, pricing the particularly to, move just customers themselves some what of what general get do about is past in lot more revisit perhaps the type core at value in was be them industry lower to like communicate for years? four of a the value the price preparing Palmer

I look way working really what read doing at the QX, is I When we're John, back Hey I it, think well. morning. good

and our For POPEYES Canada, businesses, Tim traffic good. competition sales in at BK sure Hortons to business but our U.S. also relative our and pretty performance in is

King balanced three price the take want say few over headwinds. strategy avoid deeper years have. cost to The with five at that manage So had the We happy quickly, I'd in any don't years to pretty want but how perspective also years we we've discounting Burger to to we that is up we're that ago. probably happened some of we the last we try be

strive I we the to some system, effective in and the offerings.So to Burger the some value be already world, seem pretty kind good to think mechanisms U.S. trying of specifically we're that and sure So within value make we working. King reasonable have everyday U.S., value around have

had Your that we've $X in We've the market. meals. wraps. $X Way We've We XXX Duos have our had had the

So a those the of franchisees. think value. little think a the while more for of It's I we've a the pretty a a of balanced the markets are into and having We no it intention been strategies. they've where say there.If margin things there you effective I'd you I more that see strategy can there's a doing. where And International, bit And think bit nuanced. of change been markets on profile we've a better division get strategy had different lot some to lot real is

right with markets places work that to we're the some when we've think with across in got reflect we're do able been been other consumers. think value results and the all think value But bit we've need a I we're zoom markets, good have And I we and of some like places market little probably haven't we and consumers, to more I with bit that offerings. division it's results on.So more providing, the as working big take sure of those money out you of with resonating markets, make majority our gotten for the there's that credit a little for the think we've happy where to we France, a share.

of just levers we've to got a lot John, pull.

Easy good PM Love, So when with to of quarter got through spend levers offering value we to have more business. to be consumers at products. increased our better have you growth foods at to different doing Burger value consistent at of good products. other was pretty try And a launching it, get POPEYES good a getting a first King range Easy Burger feel service at of of and look We we're we But reflection we're that. of out It's and balanced about things giving with with balance the Tim's with reimage Kings all Run ad to platforms. pulling to the a that lot

of Silberman from the question Lauren Our Deutsche next of is line Bank.

'XX On and talk going is timing how be unit XXXX pipeline how I about the color is any you beginning the your development back the half in versus visibility And then tends to on the growth, weighted. up? Can just pipeline shape to expectations? know it for

Hi, Lauren. Good morning.

So still for mid-X% our for year. the outlook growth is unit

always pretty on working is building those QX out, point pipelines. you And quiet. As we're

we we course, get further there. that we'll I and get through get share into And as of to have year. as call we'll more QX think visibility the our

we'll exactly think XXXX. visibility bit think we'll I land.And it's and early more for build on a where I more probably

on QX, the more of do of planning the final kind a QX that I year, year. together that our the get in targets for half we think kind lot back in of we all better growth where Usually franchisees. plan the of as we and the have sense with want check well, and into just we year a the wait further of probably to when we'll

more more So probably that can on months come need back with a before few we visibility front.

next today Charles from Cowen. TD Our line the Andrew of is question of

hearing challenging macro Josh, from soften. is quick-service restaurant to continue about a restaurants anticipated to you U.S. to that we're spoke other

make the think X% market, the guidance particularly track for long-term notwithstanding So portfolio, across on the the across what U.S. XQ's is performance for peers. given from business we're portfolio? In just still would plus otherwise, you hearing strong that XXXX in same-store sales

Good Andrew. morning,

some you seen traffic softening levels. think I of if at overall, kind you and sales in look have So industry the

you pricing of that, from levels lower some coming have couple is that consumer is softening. into on the came consumer Some some commentary think, coming inflation we as down be seen to We past were the of But in down of knew I years. and XXXX, end you going softening and expected. some to saw see we heard elevated some

in sales. right? think to of terms We up I good numbers about in put despite that, we've were pretty QX, X.X% been our same-store able

margin healthy keep We a couple as updating the you through that quarters. progress north good the So on of of next year, that X%. outlook we'll we for feel but pretty the about

John line Zamparo CIBC. question of the from next is of Our

CPG when comment last Hey the to on good margins to morning. level? could businesses. I business. if disclosure Tim's two on those performance get you wonder that low you supply and to that of the quarter I parse you believe to chain additional about margin appreciate I the wanted call in the expect it, quarter. that was mid-XX% I commentary stabilize a, you range. at Can the back ask

question. Thanks Sami. for the it's John, Hey

couple a things on first the of chain business for in I going the think Tim's quarter. supply

to I the in of quarter typically kind mentioned my seasonally prepared is smallest as the So year. first QX remarks, off, of alluded and

chain around bit in where a business bad international debt expense you we cost around certain a supply at sales of less of year, margin to sales I in look alluded this partners. be QX.If little fixed prepared you'll lower margin. a see QX that business like costs, the XX.X% higher you remarks were the my have There was in So

to XXXX at year margin the which that supply first we I will think full the said margin XX% our on were in year a expect more full year normalized chain as for XX%. we've to around on full quarter. basis, And be past, basis, be a levels closer

that you some So color. hopefully, gives

from Sandler. of the is question next Our line Piper of Mullan Brian

in of just now context. of of called speed best contributor. a and be to wondering as continues question are can was Tim's related Canada. that to in then out that you at just a about I on process that I'm traffic here? you positive us kind the that, to service. And if a specifically you its a had and benefit be give some could from ask improving quarter, want where this historical QX. metric I driver When Tim's Last if

for thanks Brian, the question. Hey

continue So progress we make service. on speed do to of

we for X% did year-on-year. this mentioned about quarter I think, I improve

a progress. wonderful more making Matt Moore the doing and we're that team are on So job front. really

then in test probably think we that's back from Pizza for down near bit we'll we saw a for little when some the something down of, the as launched we learn little probably us of up a kind think but were slowed will weeks.And a we Flatbread that see bit, the headwind memory, where a we I is we little Flatbread, launch. bit market picked the term we muscle to in number we of before. That for like slow

we'll So I work little something on of probably and track. the through we used back as headwind, then be Flatbreads bit teams a get that a but to think should near term

America. Bank of Our Senatore the today of of from next question line Sara is

opportunities $XXX,XXX. volume perhaps are significant A specifics self-help think G&A Does about franchisees economics on question to growth. of or can question. outlook. on increases just a trying mentioned clarification then is the it's period you you getting clarification, you're unit but the to And I'm a that get on The just the not path maybe there? lower to require there that and

been count others. mentioned you But think I head than leaner much reduction. always you've

that. just of I'm if could on you bit wondering So color a little give

about Sara, just you are which concept franchise you a talking to? Are clarification referring profit. on $XXX,XXX the

thought U.S. Patrick that's I thought I for what referring was King to? it was Burger

Perfect.

so things Yeah, that. that I great. a will drive think Okay, few there's

that's that is to improved on also been modern think us discounting. which that now are of our move marketing, a about but of of us few of improving to margins. combination absolutely that come spending, pieces growth advertising important sales. be importantly, you've And of visibility thoughtful increased is state.So piece really is funding operations more to One we a sales get more the different announced a effective definitely to seen a one we've them even that's the from doing, And can increasing needed there's there. part the mix have helpful That it's more fully There we've of which pieces also remodels.

of increase a lot those, more levels So of there sales get where in made you of can a the those think lot we've margin labor then I gross a better. profit our marginal and also in more to managing already labor. efficient us terms margins progress of out lot at sales We're And allow incremental with sales productivity. become

margin an also of we're the changes a that to and that's doing well. technology some for how on the the through few important can to time. or driver.If operating the kiosks over really course it's as and a over of example, drive-thru important part of model think ordering we're stuff much I the fully piece of restaurant model, digital more we in whether able, ordering And run a can the be So move, be that to restaurants efficient allow digital really the years us

we're So of those the at of working pieces few a all are them.

towards than that better be we're different of a them on that pieces Some of to will work but working $XXX,XXX. of others, there's the get things puzzle can lot

maybe I And -- Sara, give clarification I'll to Yes. a your will clarification.

G&A grew XX% segment QX, year-over-year. in So

which second And into of flowing expenses. of of higher QX majority The so were actually, so XXXX, the now to that was compensation-related half in related they're XXXX.

investments million. took As our year. we've reduction to segment digging related anything the to you guidance we to are come by report goes year, one-off the see of really as if have full we it we'll know, we new into get $XX And we expense, in how there, I'm closely which the that's leverage well, on the full that been and G&A and G&A.So majority of pretty the That in, items some about back $XX made. the think is There role, majority the for stock-based you. can about down the some maximize we as with items guidance comp else for brand $XX the into smaller I've million working that to presidents I'm million.

of the line Our of next from is Stanley. Brian question today Harbour Morgan

it's And that that up if update any unit a you there remain or just slower macro for later, like comments, Maybe is whatever markets 'XX be East of mainly on could it just issues? North following more whether think us sort your of story, reason, but outside it's then Middle growth China, going like America. Are at you'll to of sounds best?

question. the Brian for thanks

hit you of think of mind I things top two main are that the and lot a that on focus us. have from

we the there. in of see Middle a might little pipelines bit First, a some East markets slower small may impact where be

So we that's that called paying to. which about the out February. something think certainly And talked we're we've is I one other before China, and attention in

huge a that's think for opportunity I us. long-term

track. on take time think I those all of the will right to get some it markets

course, don't As but you we'll mentioned, have update there, in coming quarters on new the of anything there. today we you touch to

Eric question Gonzalez KeyBanc. is the from line next Our of of

the ago remodel investment. to about because to year return us that something the that significant we confident it is RBI My an investment over a was if company Patrick, question said saw found shareholders. is you to make a generate

what the maybe today? to comment each of So the this that uplift, on assess in quite remodel investment it's percentage contribute to appreciate initiative? average so of I maybe speak appears which can seeing you cost round high-teens hear the of capital, what the the we to that project return you're on strong. the And exciting Can next RBI and

Sure.

an today, unit, think depending scrape depends rebuild, to average you're to up that's and close building remodels, see of of rolled range, full the through if in coming $XXX,XXX seen cost to that you're have full, end date, reuse. And our just that and on closer that million out ] us. it equipment going to of the the franchisees' a the we high scope at the the in on it's is So to the list think new on going return you're healthy on digits if to on looking of Clearly, you're lighter healthy. get and obviously, I seeing play from million $X.X wind to we $X I we But going it's a is you that that remodels return [ be the a going numbers as the that.If remodels double about remodel. to

how place. and that's that those kind average get ultimately, you to over continue bit still Burger of great get the over a we unit and good make system, we've mid-teens overall a that to return and very good do on back overall, of of got making units.So this progress So to we for lifts is question the half franchisees are that $XXX,XXX does the to half laying to our remodeled you of to average Sara's lift of and time. going for If And we can out about those feel the the things on the get remodels to double-digit this full for out for our a us plan system really lifts, the and King plays and profitability pretty to and us. see kind full are commitment nice

are seeing very that. We're We fixed. lots we different committed great to progress having We're fully And brand on on the feel pulling of levers. track. much

will today of of from be the question line Francfort last Our Gregory Guggenheim.

mostly, that from in is to to would on that curious, to value. is in on industry seem at more the guess two, the time re-inflating expect My be something seems on And the seeing one, to U.S. market. And seeing later focusing we're do be maybe markets focus we be on where protein you expect question a I XXXX. great. I in guess, the year? is the start to you're you I'm value thoughts that out through abate get industry play And that your any how Just that Do business? as they

think and for I Sami. you the perspective, But but then think market. flip about first the actually macro as chicken POPEYES a have and you've on side, costs headwinds read headwinds abatement take perspective. can of in food Look, year, it's even the QX potential beef seen question. the at, you your Greg, results, in part a from Hey most I protein the that we of about the outlook industry, from as look first off, some

earlier, here to side as But cost out We're food comes call forward-looking the nothing basis food good to arena year. I where franchise this it to of the monitor a continue outlook the last and things. for And outlook. our to nothing So in ended think going situation. on that our when about the feel year, Josh position changes mentioned we cost profitability

back Kobza to Josh Thank today. I'd conclude will you. like for this to remarks. And for any Q&A hand And closing the

teams, all you us and our restaurant to you all for on thank the say hard our soon. one to our like great a talk Well, time Have call. thank and taking franchisees to day, work for an we'll day. earnings your for corporate again and teams today join just you I'd time amazing everyone, more job the every do

today's for joining. all concludes you call. Thank This

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