Restaurant Brands International Inc. (NYSE:QSR) Q3 2018 Earnings Conference Call Transcript

Oct 24, 2018 • 08:30 am ET

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Restaurant Brands International Inc. (NYSE:QSR) Q3 2018 Earnings Conference Call Transcript

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Q & A
Operator
Operator

(Operator Instructions) Patricia Baker, Scotiabank.

Analyst
Patricia Baker

I just have a quick question on Tim Hortons. And Daniel, in your opening remarks, you talked about the Breakfast Anytime program and indicated that you saw healthy levels of incrementality with that initiative. So I just would like you to clarify and just talk about that a little bit more, when you're talking about healthy levels of incrementality, I'm assuming that what you're saying there, is that this did not cannibalize your breakfast sales, but rather, that you had incremental sales of breakfast products beyond what you would normally do in the breakfast day part?

Executive
Daniel Schwartz

It's Daniel. Yes, that's right. You know our -- As you saw, overall, our Canada comparable sales continued to improve during the quarter and they're moving in the right direction. And when you look at the impact from Breakfast Anytime, we -- it enabled us to drive incremental breakfast sales and profitability for our restaurants. So it resulted in incremental sales to our restaurants and incremental profitability for our franchise owners. When you kind of take a step back, you look at what we're doing at Tim Hortons, we're pleased to see the sequential improvement in the sales results and really, that this is just the first of many initiatives that we are planning on launching as part of our Winning Together plan with our franchise restaurant owners. We're excited about the upcoming launch of the kids program this quarter and a whole host of other initiatives, including innovation around beverages and potential loyalty that we would expect in the coming months. So we're excited about the outlook for the Tim's business, working very collaboratively with our franchise restaurant owners and excited to make our winning together plan reality and translate to increased same-store sales.

Operator
Operator

John Glass, Morgan Stanley.

Analyst
John Glass

On the BURGER KING business in the US, you discussed a remodeled program. So how many stores are in this new image right now? And what kind of, if you want to discuss or can discuss, the sales benefits you're getting from it? And what's a reasonable time frame, you are going to remodel the system? And are there -- is there are a corporate contribution? Or is this a franchisee-funded effort?

Executive
Daniel Schwartz

So we were excited to officially unveil the new modern Burger King of Tomorrow restaurant image today and our plans to roll out the image to the system. We're just getting started now. We have a pilot of this in our Miami company restaurants. We -- as you know, we upgraded, together with the restaurant owners, a significant portion of the system over the last eight years. And what we could say about this, this is really, this is the next evolution of our image. And we have a pretty significant focus on technology. We're going to have double drive throughs, outdoor digital menu boards, kiosks, internally a more open kitchen, giving the, kind of, the full kitchen theater experience and some other exciting features. Each year, as franchise