Restaurant Brands International Inc. · NYSE:QSR
Restaurant Brands International — Investor Day (May 2019)
165 slides from Restaurant Brands International's investor day presentation, May 15, 2019
Slide 1: Investor Day May 15, 2019
Slide 2: Video (Intro)
Video (Intro)
Slide 3: Chris Brigleb
Chris Brigleb Head of Investor Relations
Slide 4: Investor Day Q&A
Investor Day Q&A To Submit Questions: investorday@rbi.com
Slide 5: Safe Harbor Statement
Safe Harbor Statement This presentation contains certain forward-looking statements and information, which reflect management's current beliefs and expectations regarding future events and operating performance and speak only as of the date hereof. These forward-looking statements include statements
Slide 6: José Cil
José Cil Chief Executive Officer g® restaurant brands international FD i
Slide 7: Company at a Glance
Company at a Glance Since Acquired 1954 2010 >17,800 Restaurants staurant counts as of 3/31/2019 rbi restaurant brands international Tim Hodlous Since 1964 Acquired 2014 >4,800 Restaurants Since Acquired 1972 2017 >3,100 Restaurants
Slide 8: Growth Company
Growth Company Three iconic brands Opportunities for topline sales growth Significant restaurant white space Network of ambitious master franchise partners Focused on driving value creation
Slide 9: Restaurant Brands International
rbi restaurant brands international Tim Modlous
Slide 10: Today's Presenters
Slide 11: Organizational Structure
Organizational Structure Brand Marketing Product Development Operations Restaurant Development Digital Shared Finance, Development, Technology, HR, Legal, Communications Services W
Slide 12: Objectives for Today
Objectives for Today (Vv) Strength of three iconic brands (Vv) Long runway for growth (Vv) Compelling financial model
Slide 13: Business Model Evolution
Business Model Evolution @s es x, vonses Then Now Corporate Role “(Competing priorities) (Clear focus) G&A High Efficient and Scalable Margin Low High Capital Intensity Medium / High Low Franchisee Profitability Challenged Strong and Growing Unit Growth Low High Diversification 1 Brand, ~1,000 Franc
Slide 14: Restaurants
Restaurants
Slide 15: Strategic priorities
oved Being a brand- Focusing on Driving digital Modelling industry Living a culture that led company exceptional innovation and excellence as attracts and retains the g I a juest experience leadership franchisor best talent in the world
Slide 16: Being a brand-led company
Being a brand-led company
Slide 17: Focusing on exceptional guest experience
Focusing on exceptional guest experience
Slide 18: Driving digital innovation and leadership
Driving digital innovation and leadership
Slide 19: Modeling industry excellence as a franchisor
Modeling industry excellence as a franchisor
Slide 20: Living a culture that attracts best talent
Living a culture that attracts and retains the best talent in the world
Slide 21: Strategic priorities
oved Being a brand- Focusing on Driving digital Modelling industry Living a culture that led company exceptional innovation and excellence as attracts and retains the g I a juest experience leadership franchisor best talent in the world
Slide 22: Strategic Overview
Strategic Overview ale) restaurant Development & Technology international Tim Hortons Tin Motlous Burger King Popeyes Ge Finance 173 Closing gm, ear Lunch ‘Ps O8A poPeves 22
Slide 23: Investor Day Q&A
Investor Day Q&A To Submit Questions: investorday@rbi.com
Slide 24: Josh Kobza
Josh Kobza Chief Operating Officer
Slide 25: Net Restaurant Growth
Net Restaurant Growth 1,337 485 1,029 1,029 261 735 2010 2011 2012 2013 2014 2015 2016 2017 2018 mBK m@TH mPLK 25
Slide 26: 2018 Net Restaurant Growth
2018 Net Restaurant Growth 1,337 Popeyes: -135 US / ~75 Intl Tim Hortons: -40 Canada / ~60 US & Intl Burger King: Us Russia: ~120 Brazil: ~100 Burger King: int’! France: ~90 India: ~60 Other: ~365 2018 China: -140 | Spain: ~50 J ~60% of International 26
Slide 27: From / To
To From
Slide 28: Coffee and Chicken growth
$458 $64 $72 $591 Coffee +59 % Chicken 62% 2018 2023 28
Slide 29: Restaurant gap by region
North - America @ 7617 @ 15,377 4,641 W 16,300 2,524 4,718 22k restaurant gap @ Asia Pacific Latin America . Europe, Middle & Caribbean East & Africa @ 2090 2398 @& 5,282 & 10134 16 1,344 164 3,421 @ = Largest FFHR Competitor 9 1,302 338 5,17 W = Largest Coffee Competitor ® = Largest Chicken Competi
Slide 30: Master Franchise Partners
Master Franchise Partners Top Management Teams Shared Vision Committed Capital
Slide 31: BK Development Agreements Since 2011
BK Development Agreements Since 2011
Slide 32: International Joint Ventures
International Joint Ventures EB international Joint Ventures
Slide 33: Drinks & Coffee
> on 2 fe) c <= 3) © = DRINKS & COFFEE 33
Slide 34: Digital Foundation
Digital Foundation O@ POS @ Mobile Apps © Kiosks & Digital Menu Boards @ Loyalty @ Delivery
Slide 35: Scan Your Tims Reward
Scan Your Tims Reward
Slide 36: Alex Macedo
Alex Macedo Tim Hortons President 5 7
Slide 37: Growth in Tim Hortons Canada
Growth in Tim Hortons Canada Tin Hootaus Canada Restaurant Count +404 / 3,955 3,551 2018 Canada Average 4-Wall EBITDA (C$k) + 135% “a ~C$320 ~C$283 2014 2018
Slide 38: Tim Hortons International Expansion
Tim Hortons International Expansion
Slide 39: Tim Hortons Canada
Tim Hortons Canada Tim Hodlous %
Slide 40: Video (TH Marketing)
Video (TH Marketing)
Slide 41: Brand Love
Brand Love on Howlons. Most loved restaurant brand Top 10 most influential brand
Slide 42: Together
Together Profitable Owners Happy Guests
Slide 43: Guest survey results
Source: Welcome Image Guest Intercept Study, The Olinger Group, Jan 2018. act IR Kae] of Guests agreed of Guests perceive as of Guests “more likely” to become 43
Slide 44: Digital Integration
Digital Integration Tin Hootaus Self-Order Kiosks Outdoor Digital Menu Boards
Slide 45: Loyalty
Loyalty (Comparable Sales Driver)
Slide 46: Coffee
Coffee (Comparable Sales Driver)
Slide 47: New Brewing Technology
New Brewing Technology Tin Hootaus
Slide 48: New Packaging
_NewPockeging ae
Slide 49: Commitment to Reusable Cups
Commitment to Reusable Cups
Slide 50: Innovation
Innovation rey (Comparable Sales Driver) Sates
Slide 51: Tim Hortons products
Tim Motlons sl
Slide 52: Breakfast Anytime
Breakfast Anytime Breakfast Anytime. © = Any Tims.
Slide 53: Breakfast Innovation
Slide 54: Beyond Meat Breakfast Sausage
BEYOND MEAT Breakfast Sausage irep
Slide 55: On Trend Product Innovation
On Trend Product Innovation 55
Slide 56: Canada Development
Canada Development Tin Hostsns C$2.3mm ARS ~C$320k avg. 4-wall EBITDA ~4 year avg. payback 1 Tim Hortons for every ~9,500 people
Slide 57: New Super Urban Design
Slide 58: US Development
US Development Tin Hotd5us Detroit # Restaurants: ~170 % of US Footprint: ~25% Density: 1 per ~26,000 ARS: ~$1.2mm Buffalo # Restaurants: ~180 % of US Footprint: ~25% Density: 1 per ~6,400 ARS: ~$1.5mm
Slide 59: Tim Hortons International Expansion
Tim Hortons International Expansion
Slide 60: Country Focus
Country Entry: Restaurant Count: ARS: Avg. Payback: Coffee Market Size: See suppl
Slide 61: International Markets Entered (MFJVs)
International Markets Entered (MFJVs) Tin Howtons. Latin America Europe Asia
Slide 62: Country Focus
ey Country Entry: Restaurant Count: Freestanding DT ARS: Coffee Market Size: uromonitor; growth based on 2018-2023E CAGR; ARS for freestanding drive thru restaurants as of April 2019;
Slide 63: Country Focus
Country Entry: Bet yo: = is ] lg Restaurant Count: Coffee Market Size: () As of May 14, 2019 ¢ Data Source: Euromonitor; growth based on 2018-2023E CAGR
Slide 64: Video (TH China)
Video (TH China)
Slide 65: Country Focus
Country Entry: Bet yo: = is ] lg Restaurant Count: Coffee Market Size: () As of May 14, 2019 ¢ Data Source: Euromonitor; growth based on 2018-2023E CAGR
Slide 66: Tim Hortons Summary
Tim Hortons Summary Tim Modtous. | + Coffee ¢ Loyalty * On trend product innovation Home Market Sales ¢ Substantial opportunity in Canada Development | . Expansion in the US and Internationally
Slide 67: Chris Finazzo
p Chris Finazzo Burger King President, Americas CS Li
Slide 68: Burger King US - Overview
Burger King US - Overview $1.4mm ARS ~$180k avg. 4-wall EBITDA ~5 year avg. payback Accelerated pace of openings
Slide 69: Challenger brand playing offense
As the challenger brand we like fo play offense, rather than defense
Slide 70: Video (BK Marketing)
Video (BK Marketing)
Slide 71: Breakfast | Delivery | Food Innovation
e Breakfast | Delivery Food Innovation
Slide 72: Flame Grilling Since 1954
FLAME GRILLING SINCE 1954 PY hiker
Slide 73: Impossible Whopper Innovation
IMPOSSIBLE WHOPP=R Innovation
Slide 74: Crispy Chicken Sandwich
Crispy Chicken Sandwich cose, Crispy Chicken Sandwich Volumes (# per restaurant per day) oe, 50 7 a 100% NO : (+) Prior to Launch Current seasoned artificial (Tendercrisp) (Crispy Chicken) white meat colors or chicken filet flavors
Slide 75: Video (Impossible Whopper)
Video (Impossible Whopper)
Slide 76: Breakfast
Breakfast pa (Comparable Sales Driver) 4 ¢
Slide 77: Breakfast opportunity vs lead competitor
34% Illustrative Opportunity 14% Lead Competitor Source: NPD CREST, trailing twelve months as of March 2019
Slide 78: Video (BK Café)
Video (BK Café)
Slide 79: Breakfast Entrees
Slide 80: 80
80
Slide 81: Delivery
Delivery (Comparable Sales Driver) él
Slide 82: Growth in US Online Food Delivery Industry
Slide 83: US Restaurants Offering Delivery
Slide 84: US Delivery Partners
Slide 85: Video (Burger King of Tomorrow)
Slide 86: Burger King of Tomorrow
Slide 87: US Restaurant Development Potential
Slide 88: US Net Restaurant Growth
Slide 89: Improving BK US Unit Economics
Slide 90: Improvement in Franchisee EBITDAR ('17 vs. '13)
Slide 91: Matt Perelman & Alex Sloane
Slide 92: Compelling Investment Opportunity
Slide 93: Timeline
Slide 94: Cambridge's View of BK Development Economics
Slide 95: Growth Strategy
Slide 96: Chris Finazzo
Slide 97: Burger King US Summary
Slide 98: David Shear
Slide 99: Burger King Global Restaurant Count
Slide 100: BK Development Agreements Since 2011
Slide 101: Offices Supporting Franchise Partners
Slide 102: Compounding Benefits of Development
Slide 103: Country Focus: China
Slide 104: Video (BK China)
Slide 105: Country Focus: Russia
Slide 106: Country Focus: France
Slide 107: Video (BK France)
Slide 108: Country Focus: Spain
Slide 109: Video (BK Spain)
Slide 110: Country Focus: India
Slide 111: Country Focus: Brazil
Slide 112: Iuri Miranda
Slide 113:
Slide 114: Excellence in Execution
Slide 115: Considers
17 33 31 52 71 84 88 95 Considers 91 95
Slide 116: Creating Value for BK Brasil
Slide 117: Amazing Opportunity in Record Time
Slide 118: │ • • • • • • • • • • •
│ • • • • • • • • • • •
Slide 119: First Joint Venture Business Model
Slide 120: Slide 120
Slide 121: Slide 121
Slide 122: Master franchise countries
Belgium Korea Saudi Arabia Finland Malaysia South Africa Germany Mexico Taiwan Indonesia Norway Thailand Italy Portugal Turkey
Slide 123: Slide 123
Slide 124: • • • • •
• • • • •
Slide 125: Slide 125
Slide 126: Slide 126
Slide 127: Slide 127
Slide 128: Slide 128
Slide 129: Slide 129
Slide 130: Slide 130
Slide 131: Slide 131
Slide 132: Slide 132
Slide 133: Slide 133
Slide 134: Slide 134
Slide 135: Slide 135
Slide 136: Slide 136
Slide 137: Slide 137
Slide 138: Slide 138
Slide 139: Slide 139
Slide 140: Slide 140
Slide 141: • • • • •
• • • • •
Slide 142: Slide 142
Slide 143: Slide 143
Slide 144: System-Wide Sales and Consolidated Store Count
System-Wide Sales and Consolidated Store Count
Slide 145: System-Wide Sales Growth Since Acquisition
System-Wide Sales Growth Since Acquisition
Slide 146: Adj. EBITDA & Adj. EPS
Adj. EBITDA & Adj. EPS
Slide 147: Growth Since 2010 Metrics
Growth Metric 2010 2018 ’10-’18 Iconic Brands Restaurant Count ~12k ~26k +2x System-Wide Sales $15bn $32bn +2x Adj. EBITDA – Capex(1) $0.3bn $2.2bn +7x Net Debt / Adj. EBITDA(1) 6.7x 5.1x (1.6x) Cumulative Capital -- $4bn Returned(2)
Slide 148: Slide 148
Slide 149: Slide 149
Slide 150: Brand Component Key Growth Drivers
Brand Component Key Growth Drivers Franchise Royalties Global System-Wide Sales Franchise Royalties Global System-Wide Sales US & Canada Comparable US & Canada Property Sales and Inflation Franchise Royalties Global System-Wide Sales Canada & US Comparable Canada & US Property Sales and Inflation Su
Slide 151: Slide 151
Slide 152: Slide 152
Slide 153: 90% 86% 84% 87%
90% 86% 84% 87%
Slide 154: Weighted-Average Cost of Debt
Weighted-Average Cost of Debt ~$240mm annualized refinancing savings(1)
Slide 155: Slide 155
Slide 156: Slide 156
Slide 157: RBI Net Leverage vs. Peers
(Net Debt + Preferred) / LTM Adj. EBITDA RBI Net Leverage vs. Peers
Slide 158: Slide 158
Slide 159: Declared Common Dividend
Declared Common Dividend
Slide 160: Slide 160
Slide 161: Total Shareholder Return
Base Layer Returns • • Strategic Value Enhancement • • Total Shareholder Return
Slide 162: Slide 162
Slide 163: q q q
q q q
Slide 164: Slide 164
Slide 165: Slide 165
Restaurant Brands International — Investor Day (May 2019) on 6ix