Restaurant Brands International (QSR) 3 Nov 222022 Q3 Earnings call transcript

Good morning, and welcome to the Restaurant Brands International Third Quarter 2022 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] Please note this event is being recorded. I’d now like to turn the conference over to Kevin [indiscernible], RBI's Head of Investor Relations. ahead. go Please

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

As rbi.com/investors, and call recording will of the live for Relations a a replay. available accessed Investor at be through this page web be reminder, a may broadcast

subject call set contains Restaurant Kobza; on Brands in Matt CFO, Joining forward-looking and release morning José which Today's CEO, issued risks the and SEC Dunnigan. me call to International's the press today in are earnings forth filings. statements, are Josh various Cil; this COO, our

In addition, in of the includes website. financial included non-GAAP available release measures. on our this Reconciliations earnings call press are financial measures non-GAAP

system-wide cleaner on During to stacked normalized comparable the using portions we'll a of trending comparisons indication metrics. be are of calculated a XXXX disclosed today growth for provide sales, sales call a comparisons the The growth three-year more referencing the versus and geometric business how period. XXXX, is XXXX by and year basis three

acquired to consolidated growth, growth turn growth sales prepared December And including Firehouse the remarks metrics results adjusted call which during the XXXX, year-over-year to now, growth, discussed system-wide from Subs, we the over and XX, exclude restaurant consolidated EBITDA reflect growth net comparable addition, organic I'll on figures. In José.

of on Thanks, everyone. quarter you to call today's us our Kevin, discuss morning, for joining good third XXXX. and for results the Thank

XX% sales improvements primarily strong globally; estimated growth saw Russia. Firehouse XX% an foster the digital Tim on in comparable and progress. Subs; and and These across to businesses; continued X% U.S. Burger we year-over-year and growth the of regions. plan results related and our impact brands King system-wide Burger at growth, development adjusted Popeyes meaningful driven up EBITDA International EBITDA King, and quarter, This by were our Hortons together pieces of Canada, X%, in performance adjusted or organic sales to across excluding our sales continue key growth come With

the from Turning quarter. to highlights a few

we by sales King, XX%, comparable year-over-year and third peers. Burger in sales King to U.S., sales Burger improvements sequential home comparable markets. at and the the Hortons Subs consolidated gap narrow and sales by Firehouse quarter, our comparable saw business, During Popeyes grew King sales Tim we XX% X% International continued At Canada, at Burger to X%, driven comparable

digital sales. digital continued Our channels contribute capturing sales XX% this to also to $X.X a year-over-year sales global quarter system-wide our consolidated of to growth billion, nearly with up third

the once made development and third during Popeyes We strong standout quarter again another also with progress solid a for well-positioned year.

The As more to we're combination growth on development Firehouse the $XX.X sales to net billion, growth EBITDA up X% excluding comparable adjusted world excluding expect to QX also our we ahead, adjusted restaurant and sales year-over-year, Tim our mix and see Russia. estimated bringing historical related back and King of levels organic and system-wide XX%, over Burger ramping Subs long-term EBITDA impact helped XX% or to of around Hortons look time. strengthen, while drive more to pipeline and markets in confident the Popeyes

free returning strong while capital flexibility business, to provided in reinvest Our our this with flow quarter cash to us shareholders. generation

returns, quarter, growth. dividend delivering million, XXth we year-over-year our to the commitment continued the consecutive of shareholder During quarter over representing $XXX

to capital over industry-leading $X strategy. with per time. dividend allocation it we're Our as our continue growing key and business will remains a our share maintaining our look committed And dividend such, on basis to component of

for results I brand want into milestone important another to diving the quarter, highlight from quarter. Before the

to making King franchisees This to be and incremental fans to a the firepower, franchisees accelerate over critical was new It investment Reclaim our technology was with a and the improving to investments. our which well It committed stand sequenced a our that higher and confidence sales create guest profitability at franchisee U.S. increase King, digital engage Burger against. of at and we As and quality aimed in and the $XXX energized King restaurant members plan be September, experience also to Burger in Flame important our and drive corporate traffic will next million us will behind drive our execute we Burger support thoughtful, growth why proud ones their know, of, many improvements help plan, years. that designed two you create investment at advertising is a plan remodels, and we demonstrate team unveiled together plan and work

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guest-led. our to continue to and scale to to boards appropriate, with buying and power strategically, and address leverage franchise opportunities use closely We our work councils where within and pricing directly pressures to advisory owner always and through when identify and franchisees our being control,

of our continued a been the While business see certainly testament of we've these and value also to are pressures the with resilience pleased to engagement our strength model proposition. brands, impacting our consumers,

profitable forward. engage on all in and we and confident ahead, Looking across profitability sales, plans driving and we have franchisees guests, drive to in feel sales brands the remain for traffic improvements our our growth going our focused franchisee

that for team start will plan X,XXX of pleasure Axel, participants joining the and the accelerate the in-person Canada. the team first Turning Hortons of to brand growth, Canada, and Hortons and had Convention Hortons no with of to steps are so U.S. the doubt of and restaurant as plan. business. across time across spend our and Tim other the world next and opportunity shared see focus Axel the of to to we hear excitement and the growing having XXXX. encouraged engage parts was Canadian seeing since about PM many of the the a guests Basics to we espresso-based cold Back attributed owners’ next is the on much I their Tim around the improvements owners phase with ongoing be enthusiasm to In our I well enjoyed with as Tim There September, can the food, performance, beverages.

products, XXXX sales of year-over-year levels. Our return high The pillars demonstrates offerings strength our the in to across confidence of from the by the success strategic Tim in Hortons of our many top-line strategic third centers as XX% quarter Canada. calendar an multiple extend uneven over results profitable and even plan achieving big in strong to driven urban core see a These by into increase workplace to initiatives continue were increases. growth X% comparable long-term, we sustainable, versus our price continued resulted and growth aided dayparts in

key this dayparts, categories vanities while X% super in gap. sales from levels, the the During from this locations, XXXX we regions, in hot specialty food, growth continued sequentially, down beverage remained like beverage to saw levels we’ve narrowed urban which below the third seen past cold gap including quarter, improve to positive trend And the to than beverage offset and expansion have improved formats sales quarter. although more of XXXX XXXX XX% down all quarter for sales performance the and versus across XXXX

paired Our Cream maintained the Fritter our sandwiches Apple core a bacon breakfast spring's Canada's brewed with of the relaunch introduction goods new offering and baked breakfast Boston and last freshly coffee. platforms with donuts successful and maple of strength favorite our

offerings, food and our we our with PM a helped food beverage and As comparable goods are our during from benefit result, year-over-year initiatives. pleased see core drive uplift breakfast the quarter to to sales cold baked that added

lineup re-hit and of beverages. of cold favorite beverage pumpkin a cold spice Our featured fan our introduction cold the brew

XX% helped During platform cold to XXXX drive XX% the our XX% third sales beverages XXXX. the beverage cold by quarter total from these of over quarter, of and versus beverage initiatives in grow

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channels. digital through addition of and existing continues food extension modes, and including dine-in various drive-thru, our the our PM Loaded to from excitement garner guests Chili, into service various new With

better Our Tim number and deliver to of beverage digital digital a strong have channels in drive Canada, digital sales loyalty capabilities, third including food brand cater towards and one growing great dollars. through a the enabled over guests, app sales while experience, increase Hortons

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for ordering guests, make more speed the even integration also in of not convenient service, especially expect to We but paying and to this only drive-thru. improve

experience offerings new see possible. best while opportunities to we for ahead, offer existing features platforms to our leverage the engaging digital our guests Looking user to improving provide

Hortons Tim itself In leader being a brand. prides led a digital Canada, in in addition to community being in

and celebrated Camp Canada the Camp team U.S. we Hortons and members Smile million of quarter, and year, Canadian our exciting restaurant Cookie. important fundraising two across Day Tim Hortons Day, Camps. This Foundation over Tim initiatives and the of $XX Through owners, raised volunteers most the for

support out restaurant through important year million support XXX day beyond in record-breaking an owners with The and make campaign in Donut indigenous for their owners all to one XXth, these to local our off the than their going incredibly their Tim's accomplishment in a hard team across and day on and September communities, and restaurant million organizations Canadian $XX work the charities more and and Orange quarter, community connections Smile who day $X communities amazing grateful raising loved over Canada Canadian owners Sprinkle programs meaningful Day, going Camp groups with Following raised capped in Canada. restaurant Canada. campaign. for proceeds I'm each our to neighborhoods above Cookie then

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making You've heard stress guests that Popeyes convenient more goes me development before opportunities. to beyond

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increase XX% home This market our helped system-wide sales. of efforts XX% quarter, drive in year-over-year representing digital sales, a

to experience digital a potential a average service And development, Firehouse Josh of brand market maintained in As Subs, restaurant strategically a to drive the growth strength delivering to Louisiana the north trailing on for quality which guest the system differentiated continue volumes guests we accelerate through growth. look remaining unit Firehouse offerings world. of high forward, well-rounded future of moment, to XX-month guest finally, and home growth heritage a around and Popeyes all basis, consistent Subs menu demonstrating long-term $XXX,XXX will we’ll the while delicious improvements, and brand's discuss opportunities. positioned true

the the roughly which third unit of seven saw performance awarded love. while $XX and in Firehouse our quarter This to relatively also Safety system-wide and such through high was surpassed quarter of of the and and Subs initiatives this sales. during exclusive engagement, increase grants digital X.X% XX%, delivering net successful quarter, sales products During year continued prior million Public remained year-over-year of to quality quarter, comparable Foundation leading creative highlight like of know busy Firehouse The brand days inception. generate sales since flavorful Subs flat comparable lapping strong I'd the a to to guests firehouse X.X% incredibly that of while by increase a third as just members. week, aided offers channels its and this points sales initiatives digital rewards rewards one for our growth included the

Now, you we've brands. our been important it to Josh? I'll walk turn over the across of through some operations to enhance to doing Josh work

restaurants mentioned but investment and to the have impact. Matt helping effectively partners and increase having United Today, field Restaurants at and some see partners And José on them and franchisees they're fully restaurant an Indianapolis of in more Popeyes restaurant spending who general make investments, bottom and here system is you, experienced improving data us field to identify data. have field to over everyone the will like focus, places and provide we've the technology, they energized making from team our to with are pattern as and enable provided that we we managers order I've been of above Success almost a at restaurants, teams particularly consistent franchise involved U.S., number with in business a to need our clearly Burger need system-wide and we They're support market investments we've visits restaurants Lafayette and which System. to we this recently a dedicated to support. States. and consistently, scoring a have our made always big These our how improve. operations restaurants our positively equipped of I'd better the identify in in profitability with members more refer performing past, seen by that we King this franchisees impacting clear in time. leaders our Thank highly to José. in to a and our identify experience outperform time recent to operations Franchise the in help, our aligned both guest areas that presence With operations focus this Boston. share difference. in sales in it teams, With metrics and and the can

real are see where into feedback general Now, arising. issues can near managers and restaurant time insight have guest

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journey more of roughly XX% operator franchisees we're already and metrics the in expect momentum will follow. While and seeing this top this bring to our on I year, since we're ops more earlier at sales beginning bucket, Popeyes of into improvement

restaurants our thousands momentum. and proprietary across Royal outdoor and other display that bring restaurants new where pads Those to the franchisees rPOS. bump Dated cover comprehensive more. kitchen POS as to time things up all to hardware POS cases country excited our bring showing the exhaustive many rollout give menu company in process internet initiatives the restaurants. and investments I'm bars, sales and monitors, in very and experience soon business restaurants managers. lot plan, updated can in their thrilled scale. equipment restaurant for of today Miami our for teams with some And as of the a an granular restaurant was decided members The single Reset and the new guest into in better and Today, partnering our how satisfaction time cabling indoor all in do the downtime year where going topic I to this which really us to is here with XX% King's for and technology like at restaurant a our technology near-term to restaurants of earlier in can at cabling payments I'd like hope terminals company not in to I'll freezing while Burger support and technology the some King. restaurants prone the our running rPOS, team restaurant and XX had King system, lead throughout our today. restaurant wrap they spend This a of since at POS most Miami to our overhaul of pin to The the thrilled important have are we technology up old teams that to is is Company this positive hardware our upgrades are improving other frustrations screens, XXX% Miami possible. general or and about many and guest examples list, are these shift Burger impact can insight from We can nearly board upgraded basis a for new physical are Burger improved this problems improving solving restaurants an in same-store of technology XXXX, roughly higher experience, is uptime from driving parallel to more crashing.

it I'll discuss who over Now, Matt financial the results quarter. to will for our turn

and good Thanks, Josh, everyone. morning,

by digital, to business better franchising profitable that differences an over excluding impact year-over-year XX% EBITDA third EBITDA sustainable quarter, the Adjusting largest Firehouse in initiatives, growth experience and increase deliver excluding billion outlined, Josh the our global of and in from investment drive well as The our third XX% $XX a Russia. growth. for plus gap been system-wide sales approximately support rate XX%. growth the to negative G&A organic led which for and the This our fund between adjusted and increased Firehouse, in organic rate our are and organically, sales continued our our investments year-over-year system-wide key driver important areas of adjusted in For was ad our as reduced a grew estimated adjusted to for growth execution million X.X%. $XX includes guest quarter EBITDA have timing, of to as growth our sequential would quarter, excluding X% these segment operations,

in modest Shifting we to core fourth I quarter. people on investments in prioritize the and we As call, expect sequential see ramp continue to to our segment G&A in last mentioned teams, EPS. another as our

benefit non-cash reserve such was Our years. for to related $X.XX per a as discrete which third quarter certain earnings adjusted tax share releases $X.XX, historical benefits included

share share. this organically, our an was approximately $X.XX, or excluding headwind per X% last earnings benefit, adjusted $X.XX XX% negative FX of increase Excluding representing an $X.XX compared year, per to of

based the During increased compensation to million. equity year-over-year $XX our quarter,

flows mentioned five-year from similar to I year-over-year vesting. equity-based shift structure this framework points. our our quarter. the It's said, considerably, change to we’ve of rate four-year cost been incentive rates QX, our compensation and past the changed our When to rates rates six fixed last flexibility debt. on XXX floating in expect fourth represent through of in we the has QX we contributed and to the hedging since versus for quarters which would have in XXXX, would and rates third over basis year-over-year the an refinancing, roughly actual As quarter, seen This our of increase rise quarter, comparing compensation and That forward proactively to market increases three- standard few that create noting lock current of years. years, start for worth extending in benchmark directionally few over also XX% interest past debt U.S. next the capital we trend market our in the approximately a the

As interest cost a for blended our points by basis result, total QX the risen debt has only of expected QX. on XX about outstanding versus

allocation cash to Turning our flow priorities. and capital

with making per aspects announced and allocation at unit, XXXX. including During important the million free of dividend, flow, million key the quarter on through year investments shareholders $X.XX share us in full policy, our for our generated QX capital returning of which we allowing in capital declared our cash again previously business execute in $X.XX consistent our to $XXX common of $XXX target we industry-leading for to

our over $XXX to cash nearly leverage X.X and ended million net of including also with We $X.X billion, a quarter the liquidity sequentially times. saw declined position of

business. strategic successful Reclaim looking we as our time over capital forward, the and it our investments, dividend $XXX and be allocation including million to priorities the per to grow as our on program, our Flame $X commitment José Going share execution existing of on brand mentioned, will our maintaining focused basis grow our

recognize backdrop rates, returns priorities delevering interest a enhance also focus rising our being with on these balancing and prudent flexibility. our financial the importance capital of we and of of Given to

continue arise, cost evaluate prioritize in a for leverage capital two reducing we'll going the toward to delevering flexibility, forward, near-term, also level that area the opportunities of the years, over While while to ratio compelling share repurchase provides Xx net in three mid strategic to next should time. intend a opportunities we our over target

geographically drive flow next few core bright diverse us with provides priorities, opportunities a resilient to flexibility The our over U.S. and spots to to operate and improvements execute We business Burger with generates business multiple the well with drive very as fortunate of it quality King strong years. sustainable plenty growth. the profile clear in growth, strong and long-term of our cash are as significant against

enhance building our around field remain your thank and leveraging improve Brands Operator? guest equipment that, plan. open technology and year, the With support this in good in sales we and investments we growth, As in markets making our world, to look out the Restaurant execute close operations, experience our ability for the recent the to on against our us line utilizing key questions. initiatives, to now to for we’ll accelerating technology I'd and our are for teams, momentum which morning. unit joining And everyone confident to strides our home again global like for

comes Thank UBS. today Our from Dennis first from you. Geiger question [Operator Instructions]

question. of pressures more Good a could the to well Wondering at there. kind getting global levels if the strength given for brands the And International, you if historical thanks sort as back speak the of the Great. as mentioned kind around world. of morning, the beginning bit the on macro to touch and could outlook BK José, little of you current you

would business unit of kind that you. Thank on be would Just anything more the be and helpful. growth

the this. now partners strong our And Hey, businesses. sat in on we the strong into visibility ventures mindset and is their paybacks, capital also our profitability, their long-term confidence are and Dennis, we growth, joint the their especially that have franchisees And for got a a much the doing teams, their outlook and morning are invested kind long-term the of talented international for growth Yes, mentioned what have years in outlook internationally. structures. our with our standpoint, in of from of pipeline of growth returns group past. diversified really capital and on our a their our and the their drives domestically folks They there's that master internationally good over thanks sales, so this many well-capitalized on question. global I've development boards

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working of progress. on lots long-term, you the our to might So, want about you do, we're Matt, keeping closely look to confident our and forward add. And with franchisees, updated work to

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headwinds to quarter-to-date, around volatile. moving been rates. have we But current see based sequential expect have directionally been where some rates and based on in those are FX So, increase FX on quite we

Please Our David Palmer question go from is today ahead. Evercore. next from

Thanks. Yes.

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now question from ahead. Please We Brian go from Mullan have Bank. a Deutsche

franchisee when you Remodel Reset to to speak remarks, speak there realistically capital? Just I from cadence perspective. how start like just or you the Specific application can a can with maybe critical to prepared or speak from guess, could them able Royal quickly on you to of question the sounds of lift oversubscribed approve Burger the King José U.S. could underway, speed you sales were to be which this? you. a projects see program, you're the that deploy mass and of when expect some to from might sort you all to Thank roadmap it

deploy we previous of the $XX that question. shared the remodel the got of Reset, applications our remarks which Royal and communications. we've are a components the specific and capital work over to And making we laid Brian, to was of contributing the refresh, the Hey the Reset, is then, and out I through of we've teams system time, more through up cetera, the out bit excitement a remodel bit enthusiasm and to got in remodels, of to kind for et have be detailed approval is -- quickly the of for behind require those oversubscribed will require in of and midterm which the equipment match. programs. we've What and That And start technology investments, to takes through the but of those expect in program will in we more as business full is And detail prepared our many more kind had take to two-week it's match as permitting see where to the be time. plans. restaurants, what investments, near-term And to million lot a exciting as as the see pipeline drive impacts of the each both we was we're quickly. rebuilds, near-term very that going plan and of And now got obviously is the in in investments allocated Yes, thanks plans restaurants, in in to laid physical working cases as program. a locally franchisees window two plant going my where they're we've as a we've we as they're of there that XX scrapes those million. then, And investments, in and we Royal for all full exterior that that recall one possible. million kind -- we'll in And to should well time -- have we'll near-term. expect each $XX our municipalities continue

we to behind So, details just have highlight and the excitement it. of that's the plan the

signing the for co-investment, XX% The franchisees the that just continue and the we Thanks we other I'd and a making of to you plan Flame marketing we assuming progress all we lot point now we've up hurdles on we board for that And front, that make program, on the the continuing the is the with Fuel on in made on announced met. forward we're of started October question. been have there. update out -- laid the that look program to --

question next Glass Our John from go ahead. comes Morgan from Please Stanley.

I system. start going you're up to Burger have modernization just times closures. At like follow you also through, could some the you efforts, If when on see King U.S.

stores don't a Some I ago. few you closed that example. for you to franchisees that, recognized want see as Do maybe do years a potential?

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we've As any of before, outsized don't closure said we expect kind program.

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So, with long-term franchisees. continue we're the about we'll all plans in, to excited our work and

to is their growth opportunities work you address worked of of with we've make a much franchisees -- but lot it's large restaurant each on is the of give view in around each our and we’ve that as well. that And I for profitable number one in – of per some hard drive and got sure so an have and well. they can on XXX got and operators challenges in deliver think that the the base terms -- together them Thanks franchisee we’ve U.S. average smaller franchisees plans we a their to the count, we’ve to they got large as And of business there's question.

comes Carril question next Our RBC. from from Chris

now open. Your line is

morning for question. and the thanks Good Hi.

behind U.S. So up ops are systems? just in do the expecting across those And and Popeyes following and improve G&A to think in further along core how efforts sequential on mentioned to ramp field had BK your Josh's know, in I you Matt, far remarks, to are support prepared a efforts? you the you you teams any XQ. overhead continue modest investment segment drive

to wanted that confirm just these So, related discussed. to if that's has investments Josh Thanks.

Hey Josh. for question. the Thanks Chris, it's much so

I investments all As the field in kind with progress the really you of initial mentioned, the the they work think do and up day. are backs that teams every processes there. pleased we we systems have in made And that big measurement of and

and horizon journey. that both the that are very the large in very have we you a way vast the initial I'd already have And very say, really long pleased the operational and are we supporting big Popeyes. teams do years, of would and our over say as the across measuring it's we with I long it. King a it think I teams managing made. When the our that's seen Burger are I the that consistently results But performance. have been of and time franchisees lot of about I of these to are and teams characterize you We’ve that the buy-in, we think all that number systems. a way would we for both, systems, to trying something and make already across have changes majority investments

place. a as they we have go into couple next tweaks in of of may make year, the lot minor. field are we a but We teams So, small relatively

so really I are think about great that time be working to in front, persistent think need period that really on to over teams who the So, together and but move of progress, those franchisees, really well of I the direction. thankful something a initial to right long systems both the we

Yes.

franchise I there, that move and technology sequential does your do on in G&A, think the you operations to we G&A, some we spot and on continued in point are these investments shared, in around that as to into expect and development relate ramp just I look think we next year. modest comments

comes from Our from Nicole next ahead. Piper Please go question Miller Sandler.

essentially King I The And any you any question importantly, again terms U.S? is, post U.S. momentum could morning. return saw ask of of brands Day frankly, Tim's to you. wanted Good about and Thank share in the Labor anything Burger and you most you. Burger office? Canada Canada to King Tim's Thank but

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plan quarter. All working core of did which the improvements in in is see we the some to say that that mobility

the super from point to the Toronto up versus low minus city XXXX, minus in locations, versus other 'XX those locations Our X% XX%. in centers, city like and big was urban improved centers, which

happens as of in marketing function and that plans, not mobility come the to of well, mobility crux service be our operations we're see not core investments time all our Tim's better but for team U.S., continue a we huge is the share we to is of a implement the media Canada. mobility in continue to is we to So, was pay gains plan. and those better the especially on, profitable in kind and of why mix not the team locations working that are modes, which urban, waiting the from with we're plan The to from that is which a King -- question. remains to business, there franchisees in challenge of a It's the Flame at the for kind in and the quarter, that better And for in progress combined to so believe plan But improve. Burger dividends much shared multiple elements have are and drive kind suburban some Reclaim our time in improvements clear, and back. And any plan seasonality want we've digital important the execution are of so past. with our our of the environment. we media digital grow Thanks

comes ahead. from from question final Oppenheimer. Bittner Our Brian go Please

to here. of to rest Burger I me trends, squeezing same-store for very sales where shift Thanks continue strong underlying King in business you the world I'll showcase believe.

tougher in same-store maybe where an trade international levels waters? or QSR well international Burger economic international actually benefit continues rest that you really were pre-pandemic Do internationally, you for how on brand navigate outside That's a U.S. more to King outlook your your become quarter down frame Could environment that sales. still world, best-in-class brand positioned consumers if macro the challenged? Burger do the believe of you Burger amongst XX% above the King King is This the peers. from

$X business have in to business -- and system-wide France, we France XXXX. in Yes. very gotten many France peers in of international sales brand in like and We're in both. leading We're We've quarters in $X examples. seeing we today, in excited $X with a as some in that's the we're north and billion Spain average, and On of the of are brand progress system-wide business sales system-wide we're billion for in with markets the our or had a back our outperform terms sales. internationally. Spain. grow making And business last nearly preference, row, in cases, terms in count it's In five King. restaurant Burger seen well, the places the

have sales six versus for I think and five internationally gotten quarters business In million same grown markets growth. double-digit, store stronger, XXXX. sales post-COVID, $XXX us system-wide has in the system-wide of over top the sales,

$X made to has $X And we've it basically lot from from sales system-wide those markets in in gone and the progress billion we've a improvements in of off-premise business. the come So, billion.

Way is remained is to plant-based getting building We've Your many that model reasons, strong, the digital more And leaned prepared modes internationally. markets, cues is of digital our center back in the image, brand coming And And my I drive-thrus. including got Our strong, I quality is actually stronger. service dine-in we've that's sticky. more well. modern mentioned quite all the comments the strong Whopper our to We're a on and of adjust some to And Have we've customer being these at really preference it in behaviors. the bit. adopted think for the business remarks. into as

on The about of the we're and as value rest they're update we strong everyone and the utilize final well to And and good environment they international domestically progress. see -- master in that you teams, you progress on of really brands is progress based. the system, that And have and business any I strong the strong offerings progress. well note is we of a awesome digital, gain core perception, momentum and which modern amazing in when look be foundation and our super franchisees our we including internationally. excited especially continued continuing And can premium type and innovation, of are offerings, to and great forward great making. the All to positioned showing to think brand current plant of menu environment, really able as

the Reclaim their Popeyes, franchisees as us International, And thank questions that growth our we most today's proud our in the close progress as work to at the dedication the King steady and day. doing, for team, alongside contributions participating and members well, our for and at place I everyone the good with continue outsized Hortons Firehouse in I'd Burger -- continuing the And their and to to of the and Thanks the brands our work for performance big mentioned, we're as Canada, dream I'd on that really U.S. restaurant Tim ongoing excitement to call. franchisees. that, towards BK our are work again with around Flame incredibly plan team our and continued thanking progress have building great franchise by make and and domestically, loved we world. improvements at development We're a exists great your of to for internationally, joining make trajectory. like just community owners in continue like a a

quarter third Restaurant Brands XXXX earnings concludes This call. Inc. International

now You disconnect. may