Restaurant Brands International to Report Under New Segments Beginning with Year-End 2023 Results on February 13, 2024

New Segments Provide Enhanced Disclosure on International and Home Market Businesses

Jan 8, 2024 - 09:01
Restaurant Brands International to Report Under New Segments Beginning with Year-End 2023 Results on February 13, 2024
Segment Contribution: LTM September 30, 2023

Restaurant Brands International Inc. (TSX: QSR) (NYSE: QSR) (TSX: QSP) today announced details of its shift in reportable segments and definition of segment income.

Beginning with the fourth quarter and year ended December 31, 2023, RBI will report results under five reportable segments: (1) Tim Hortons ("TH"); (2) Burger King ("BK"); (3) Popeyes Louisiana Kitchen ("PLK"); (4) Firehouse Subs ("FHS"); and (5) International ("INTL"). The TH, BK, PLK and FHS segments include results from each brands' operations in the United States and Canada. INTL includes consolidated results from each brands' operations outside of the United States and Canada. This shift in reportable segments reflects how RBI's leadership intends to oversee and manage the business going forward.

In addition, RBI has transitioned its definition of segment income from Adjusted EBITDA to Adjusted Operating Income ("AOI"). Unlike Adjusted EBITDA, AOI includes depreciation and amortization (excluding franchise agreement amortization) as well as share-based compensation and non-cash incentive compensation expense. RBI will continue to report Adjusted EBITDA on a consolidated and segment level basis for supplemental purposes.

Josh Kobza, Chief Executive Officer of RBI commented, "Our announcement today reflects how I plan to oversee and manage our business moving forward. We have four amazing brands being led by five ambitious leaders across our home markets and international. I am excited to provide them with even greater autonomy over their strategic decisions so they can move quickly to accelerate growth."

Matthew Dunnigan, Chief Financial Officer added, "Our business leaders are prioritizing investments that will drive long-term growth and attractive returns for our shareholders. Our transition to Adjusted Operating Income will provide increased focus on all the operating expenses associated with these investments and add greater accountability for delivering strong returns through profitability growth over time."

The Company will report under these segments and with its new segment income definition beginning with its results for the fourth quarter and year ended December 31, 2023 which will be announced before market open on February 13, 2024.