Restaurant Brands International Inc. (NYSE:QSR) Q4 2018 Earnings Conference Call Transcript

Feb 11, 2019 • 08:30 am ET


Restaurant Brands International Inc. (NYSE:QSR) Q4 2018 Earnings Conference Call Transcript


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Good morning, and welcome to the Restaurant Brands International Fourth Quarter 2018 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 would now like to turn the conference over to Chris Brigleb, RBI's Head of Investor Relations. Please go ahead.

Chris Brigleb

Thank you, operator. Good morning, everyone, and welcome to Restaurant Brands International's earnings call for the fourth quarter and full-year ended December 31, 2018. I'm pleased to join you today as RBI's new Head of Investor Relations, taking over from Markus.

I've been working closely with Markus over the last few months and I'm looking forward to working closely with all of you. As a reminder, a live broadcast of this call may be accessed through the Investor Relations web page at, and a recording will be available for replay.

Joining me on the call today are Restaurant Brands International's Co-Chair of the Board, Daniel Schwartz; CEO, Jose Cil; and CFO, Matt Dunnigan. Daniel, Jose and Matt will also be joined by our COO, Josh Kobza, for the Q&A portion of today's call.

Today's earnings call contains forward-looking statements, which are subject to various risks set forth in the press release issued this morning and in our SEC filings. In addition, this earnings call includes non-GAAP financial measures. Reconciliations of non-GAAP financial measures are included in the press release available on our website.

Let's quickly review the agenda for today's call. Daniel will start with some opening remarks and highlights for the fourth quarter and full-year on a consolidated basis and at Tim Hortons and Popeyes. Jose will then discuss our results at Burger King, and Matt will review consolidated financial results before opening the call up for Q&A.

I'd now like to turn the call over to Daniel.

Daniel S. Schwartz

Thanks, Chris. And good morning, everyone. Thanks for joining us on today's call.

As you probably saw a few weeks ago, we recently announced some exciting leadership changes at RBI. Given how recent these organizational changes are, for this quarter's conference call, I will discuss our key results for the consolidated business at Tim Hortons and Popeyes, while Jose will walk through our results at Burger King. Going forward, Jose will be taking the lead in discussing our business results across all three of our brands on investor and earnings calls.

In 2018, we continued to deliver strong growth in our top and bottom lines. On a consolidated basis, we grew our system-wide sales by nearly 7.5%, driven by comparable sales of roughly 1% to 2% at each of our three brands and consolidated net restaurant growth of 5.5%.

This strong top line growth allowed us to achieve 2018 consolidated adjusted EBITDA of $2,212 million, representing an organic year-on-year increase of over 4%. We also grew our adjusted diluted EPS by over 25% to $2.63 per share, up from $2.10 per share in the prior year.