Restaurant Brands International Inc. · NYSE:QSR
Restaurant Brands International — Investor Presentation (February 2024)
26 slides from Restaurant Brands International's investor presentation, Feb 15, 2024
Slide 1: 1
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Slide 2: Forward-looking statements
This presentation may contain 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 are not guarantees of future performa
Slide 3: 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 est experience leadership franchisor best talent in the world
Slide 4: Four Iconic Brands
Four Iconic Brands rbi rbi brands ~=—ss« S070 ~$43B ~190 international Restaurants System-wide Sales Market x Brand Combos BURGER KING Tim Hotlous (gate 9 Popeyes. Since Acquired Since Acquired Since Acquired Since Acquired 1954 2010 =1964 2014 = 1972 2017 1994 2021 >19,500 > >120 >5,800 >15 = >4,50
Slide 5: Proven Track Record of Growth
Proven Track Record of Growth rbi 2012 2023 Growth Brands ane Kine Tatas Restaurants ~13,000 31,070 2.4X Markets ~85 >120 1.5x Brand x Market Combos ~85 ~190 2.2x System-wide Sales ~$16 billion ~$43 billion 2.7x Adjusted 7 a a Operating Income $0.5 billion $2.2 billion 4.4x Adjusted $0.69 $3.24 Ix D
Slide 6: Operating in Top Global QSR Categories
Operating in Top 4 Global QSR Categories QSR Category Market Size ($B) ‘22-'27E CAGR $619 Bakery & Sandwich 46.2% Chained (410.5% Chicken (+7,.53% CLIe Burger 45.5% 2022 2027E Source: Euromonitor 2022; chained QSRs; sales based on 2022 fixed rates | Note: Burger, Chicken, Chained Cafes and Bakery &
Slide 7: Brands: sustainability framework
Brands is our framework for serving guests the food and drinks they love while contributing to a sustainable future and having a positive social impact. PEOPLE & COMMUNITIES Diversity & Our Workplace Supporting Supporting people Inclusion & Culture Communities and enhancing livelihoods
Slide 8: RBI's Five Operating Segments
RBI's Five Operating Segments rbi Restaurant Count System-wide Sales ($B) Adjusted Operating Income ($B) RBI Consolidated: 31,070 RBI Consolidated: $42.9B RBI Consolidated: $2.2B MTH Mek Meck MFHs INTL Source: RBI internal data | Note: Results as of twelve months ended December 31, 2023. 9
Slide 9: Overview of Each Reporting Segment
Overview of Each Reporting Segment rbi International Popeyes eeu Restaurants 4,525 744 3,394 1,265 14,742 System-Wide Sales (SWS) $7.2B $11.5B $5.9B $1.28 $17.1B Revenue $4.0B $1.3B $0.7B $0.2B $0.9B Adjusted Operating $958M $386M $221M $38M $597M Income (AOI) Markets Canada & U.S. U.S. & Canada U.S
Slide 10: Increasing Franchisee Profitability to Drive Reinvestment and Growth
Increasing Franchisee Profitability to Drive Reinvestment in Restaurants and Growth Average Home Market Franchisee Profitability ($000 or C$000) Popeyes >C$280 ~$245 C$220 > $205 $210 ~$110 ; ; i 2022 2023 2022 2023 2022 2023 2022 2023 Source: Unaudited, self-reported franchisee profitability,
Slide 11: Restaurant gap versus largest competitors
‘@® = Largest Sandwich Competitor 2 “44k restaurant gap argest Burger Competitor argest Coffee Competitor @ = Largest Chicken Competitor “Yip restaurant gap 45k WU 179k ak 7 @) 44k sk mm 232K @ Asia Pacific 42k = B 126k 08k = WF O14.3k Latin America 02k = 176k & Caribbean Europe, Middle Qo amax ji ~
Slide 12: Average 2024-2028 long-term guidance
Average 2024-2028 S%t Assumes 2% to 3% inflation 5%+ 8%+ Committed to growing Adjusted Operating Income at least as fast as System-wide Sales Adjusted Operating Income Growth 8% Source: RBI internal data. Note: Long-term guidance as of February 15, 2024, Represents expected average annual results fr
Slide 13: Adjusted Operating Income
Adjusted Operating Income At Least $3.2B Source: RBI internal data. Note: Long-term guidance asof February 15, 2024, Excluding pending Carrols Restaurant Group transaction, Assumes 3% comparable sales growth, 5% net restaurant growth, 8% System- wide sales growth and 8% Adjusted Operating Income gro
Slide 14: Tim Hortons: Restaurant Leader in Canada
Tim Hortons: Restaurant Leader in Canada “Most Loved and Trusted” Canadian Brand with Strong Restaurant Owners Tin Modous. Strong Brewed ete Baked Operations Foundation Coffee & Wraps Goods and Digital >70% Market Share + © >60% market share share >65% market ww Ops: Highest Guest Satisfaction since
Slide 15: Burger King: Runway for Growth
Runway for Growth Source: RBI internal data as of December 31, 2023. S had >$15,000 higher average profitability than franc! Shift Towards Smaller Local Operators With Better Unit Economics? Carrols! Transaction Facilitates Refranchising to Smaller Operators Flame Grilled Repeatable Precision Incent
Slide 16: Popeyes growth plan
NOLA Heritage with Authentic Quality Credentials Post-Chicken Sandwich Quickly Became Post-Wing Platform Launch Opportunity for Daypart and Occasion Expansion ircana, N Path to Reach Driving Unit Economics? to Target by 2025 One of Fastest Growing Drive-Thru QSRs in US&C and Only with Top Operators
Slide 17: Firehouse Subs growth plan
Voted #1 for Food Quality! ~40% #1 brand that Strong Digital Sales Mix in Q4’23 Foundation <~ Supports Local pee 3 and highest rank in — : ae Ranks #19 Sandwich Community Activities“ FIRE HOUSE] Sa “<> | Guest Satisfaction? y Food Taste & Flavor? among peers In restaurant industry Po . Strong Enhanc
Slide 18: International: Strong Pipeline for Growth
International: Strong Pipeline for Growth Each brand in different stages of development across various markets (ous f i , (ume Sign Ma ans Process ee ean. reer Susteined Graritn _ SonceR o TD) KING - Periend Nigeria Japan Poland S.Africa China Spain France Brazil S. Korea Turkey India (14) (207) (73
Slide 19: Restaurant and System-wide Sales Gap to Leading Competitors
~66k Restaurant Gap and ~$80B System-wide Sales Gap to Leading Competitors | 2023 Leading Competitor” Select Growth Markets Exis Market or SWS ($B) Store Count SWS ($B) Store Count "Announced NCE France, India, Japan, China, Germany, $15.5 12,240 $53.9 25,094 UK, Spain, South Korea, Brazil Mexico, I
Slide 20: Path Towards 40,000 Restaurants with Upside Potential
Path Towards 40,000 Restaurants with Upside Potential rbi Net New Units by 2028: ~7,000 ~800 ~800 ~400 FHS US&C "Tims US 31,070 TT PLK US&C INTL Today 2028 Development opportunities over five-year outlook provide clear path to 40,000 restaurants Source: RBI internal data. Estimates for five-year out
Slide 21: Balanced Capital Allocation Framework
Balanced Capital Allocation Framework High-Return Investment Opportunities in Core Business y, Consistently Grow Dividend Towards Target Payout Ratio of 50% to 60% y, Reach Mid-4x Net Leverage Ratio by Year-End 2024 Manage Net Leverage 3x-5x Over Long-Term y, Repurchase Shares at Attractive Valuatio
Slide 22: Recent brand investments
C$80M: Support Behind Tim Hortons Canada Advertising Fund in 2021 $400M: Burger King Reclaim the Flame Plan Announced in 2022 Source: RBI internal data, Select example of recent investments, Note: (I) Firehouse Subs acquired December 2021 for approximately $18. Carrols Restaurant Group transaction e
Slide 23: Strategic Investments and Shareholder Returns
Strategic Investments and Shareholder Returns rbi ($ millions) M&A and Repurchases vy EV: EV: 3 = 9 . Popeyes ° Repurchases!: +$294 +$330 +$561 +$380 +$551 +$326 +$500 = C338) Long-Term Target Dividend Payout Ratio of 50% to 60% GD 0 45 Consecutive Quarters of Dividend Growth since 2013 $959 $974 $9
Slide 24: History of Deleveraging
History of Delevering (Net Debt + Preferred) / LTM Adj. EBITDA Leverage 7.5x 6.7x 60x ————> > “ es 5.2x 51K 47x Oct. 2011 2012 2015 3Q14) 2014) 2015 2016 IQIZ)—— 2017-2018 = 2019 2020, 2021 = 2022). 2025 2010 Well-Positioned Debt Maturity Profile with >$2B of Liquidity! ($ millions) @ Term LoanA @ T
Slide 25: Appendix
Slide 26: Primary Revenue Drivers by Segment
Primary Revenue Drivers by Segment rbi yin KING Tai International Supply Chain & Sales Consumer Company Restaurants None Packaged Goods ; Mid-4% Average 5 5 5 Blended Mid-4% Royalties Varies by US vs Canada and ~4.5% ~5.0% ~6.0% Varies by Market and Property Control Master Franchisee Rental Income o
Restaurant Brands International — Investor Presentation (February 2024) on 6ix