RBI's Robust International Prospects Pave the Way to High-Single-Digit Systemwide Sales Growth

Restaurant Brands International Inc. (RBI) has been making waves in the quick-service restaurant (QSR) industry, with a strong focus on international expansion. The company's strategic initiatives and acquisitions have positioned it to achieve high-single-digit systemwide sales growth in the coming years. Let's delve into the key factors driving RBI's robust international prospects and the potential impact on its financial performance.

RBI's international segment has been a significant driver of growth, with system-wide sales increasing by 10% year-over-year in 2024. Burger King International and Popeyes International delivered exceptional performances, with system sales growth of 8% and 47.5%, respectively. The company sees a path towards opening at least 7,000 new restaurants in international markets over the 5-year outlook period, further solidifying its global footprint.



RBI's strategic focus on international expansion is supported by its strong network of well-capitalized master franchisee partners, with proven restaurant experience and commitment to growing the Company's brands in over 120 markets and territories. Despite its successful historical growth and substantial global footprint, the business still has a substantial opportunity for new country expansion and increasing penetration of strong and established existing markets around the world.

RBI's acquisition strategy has been instrumental in driving its long-term growth prospects and system-wide sales expansion. The acquisitions of Carrols Restaurant Group and Popeyes China have not only expanded RBI's restaurant footprint but also diversified its revenue streams and strengthened its presence in key growth markets. The Restaurant Holdings segment, which includes the newly acquired assets, contributed significantly to RBI's overall revenue and profitability.

The acquisition of Carrols Restaurant Group, which owned over 1,000 Burger King restaurants, and Popeyes China, which had a strong presence in the Chinese market, allowed RBI to expand its restaurant count and increase its global reach. As of December 31, 2024, RBI had a system restaurant count of 32,125, reflecting a 3.4% net restaurant growth compared to the previous year.



RBI's acquisition strategy aligns with its long-term growth outlook, which includes strong comparable sales growth, net restaurant growth, and system-wide sales growth annually through 2028. By acquiring Carrols and Popeyes China, RBI has positioned itself to maintain strong momentum heading into the future.

RBI has been investing in menu innovations and marketing campaigns to attract new customers and retain existing ones. For example, Popeyes experienced a 2.8% uplift in system-wide sales due to strategic menu enhancements and marketing. These initiatives have contributed to RBI's growth and have been particularly effective in driving comparable sales growth in its international segments.

In conclusion, RBI's robust international prospects, driven by strategic initiatives, acquisitions, and menu innovations, pave the way for high-single-digit systemwide sales growth in the coming years. The company's focus on international expansion, acquisition strategy, and menu innovations position it to maintain its strong growth trajectory and further entrench its brands in the global culinary landscape. As an investor, keeping an eye on RBI's progress in these areas will be crucial for capitalizing on its growth potential.