Restaurant Brands International Boosts EV Charging Stations at Tim Hortons

Restaurant Brands International (QSR) is adding electric vehicle charging stations to its Tim Hortons locations across Canada. The company plans to install fast chargers at 100 restaurants by 2028, with the first now open in Saskatchewan. The goal is to make Tim Hortons the largest restaurant provider of EV fast charging stations in Canada. QSR has a consensus Moderate Buy rating among Wall Street analysts, with a price target of $77, implying 23.46% upside from current levels.

Restaurant Brands International (RBI), parent company of Tim Hortons, is bolstering its commitment to sustainability by installing electric vehicle (EV) fast chargers at its Tim Hortons locations across Canada. The initiative, set to conclude by the end of 2028, aims to make Tim Hortons the largest restaurant provider of EV fast charging stations in the country.

The company has already installed the first EV fast chargers at a location in Regina, Saskatchewan, with plans to expand this infrastructure. By the end of 2026, up to 50 Tim Hortons locations will have these chargers, and by 2028, the total number will reach 100 [1].

The chargers being installed are Flo Ultra units, capable of delivering up to 120 kilometers of range in just 10 minutes. This partnership with Flo, a Quebec-based electric-vehicle charging infrastructure company, is part of a larger initiative to provide coast-to-coast coverage for Tim Hortons' guests. Each participating restaurant will feature an average of four charging ports.

The expansion of EV charging infrastructure is crucial as Canada aims to increase the number of zero-emission vehicles on the road. Starting in 2024, Ottawa will require that 20% of all new light-duty vehicles sold be zero-emission, with this benchmark increasing annually to reach 100% by 2035 [1].

However, the current number of charging stations in Canada falls short of what is needed to meet these goals. According to a 2021 analysis by Natural Resources Canada, Canada needs 52,000 chargers by this year alone, but currently, there are only a little over 35,000 charging stations [1].

RBI's move to install EV fast chargers at Tim Hortons is part of its broader strategy to leverage technology and sustainability to drive operational efficiencies and reduce costs. The company has already achieved 99% renewable energy procurement for its corporate-owned facilities and is investing in energy-efficient infrastructure and electrification [2].

The financial implications of this initiative are significant. By 2025, RBI expects to see 5.3% system-wide sales growth, with a focus on AI-driven operational efficiencies and energy cost savings [2]. The company's long-term guidance indicates 3%+ comparable sales growth and 8%+ AOI growth through 2028, driven by strategic investments in technology and infrastructure.

For investors, RBI's alignment with AI and energy megatrends offers a compelling case for long-term value creation. The fast-casual dining sector is projected to grow at 5% annually, driven by urbanization and digital adoption. RBI's AI-led operational efficiencies and energy infrastructure initiatives position it to outperform peers by reducing costs, enhancing margins, and capturing market share in sustainability-conscious demographics [2].

However, investors should remain aware of potential risks, such as regulatory shifts in AI ethics or renewable energy subsidies. RBI's diversified brand portfolio and global footprint help mitigate these risks, ensuring resilience across geographies.

References:
[1] https://autos.yahoo.com/articles/tim-hortons-adding-100-flo-153958423.html
[2] https://www.ainvest.com/news/restaurant-brands-international-strategic-position-fast-casual-dining-sector-ai-energy-megatrends-2508/