Restaurant Manufacturers (QSR) This fall Earnings Prime Estimates, Rise Y/Y

Restaurant Manufacturers Worldwide, Inc. QSR reported spectacular fourth-quarter 2021 outcomes, with earnings and revenues surpassing the Zacks Consensus Estimate. Furthermore, the metrics elevated on a year-over-year foundation. The quarterly outcomes benefited from an increase in comparable gross sales and unit development (throughout its segments) in addition to from rising loyalty and e-commerce platform. Following the announcement, shares of the corporate moved up 3.6% through the buying and selling hours on Feb 15.

Earnings & Income Dialogue

Throughout fourth-quarter 2021, the corporate reported adjusted earnings per share (EPS) of 74 cents, beating the Zacks Consensus Estimate of 70 cents by 5.7%. The underside line elevated 39.6% 12 months over 12 months from an adjusted EPS of 53 cents reported within the prior-year quarter.

Quarterly internet revenues of $ 1,546 million surpassed the consensus mark of $1,496 million. The highest line elevated 13.8% on a year-over-year foundation, owing to increased system-wide gross sales in all of its manufacturers and efficiency development throughout the Tim Hortons and Burger King segments.

Restaurant Manufacturers Worldwide Inc. Value, Consensus and EPS Shock

Restaurant Manufacturers Worldwide Inc. Value, Consensus and EPS Shock

Restaurant Manufacturers Worldwide Inc. price-consensus-eps-surprise-chart | Restaurant Manufacturers Worldwide Inc. Quote

Segmental Revenues

Restaurant Manufacturers operates by way of three segments — Tim Hortons, Burger King and Popeye’s Louisiana Kitchen.

Throughout fourth-quarter 2021, revenues in Tim Hortons totaled $916 million, up 17.1% from the prior-year quarter’s ranges. System-wide gross sales elevated 14% 12 months over 12 months in opposition to a fall of 12.9% reported within the prior-year quarter. Comps within the phase rose 10.3% 12 months over 12 months versus an 11% decline within the year-ago quarter. Within the quarter beneath overview, internet restaurant development was recorded at 6.9% in contrast with 0.3% within the prior-year quarter.

Burger King’s revenues totaled $480 million in fourth-quarter 2021, indicating development of 10.6% from the prior-year quarter’s ranges. System-wide gross sales development within the phase elevated 15.4% 12 months over 12 months in opposition to an 8.1% decline within the prior-year quarter. Comps rose 11.3% 12 months over 12 months in opposition to a 7.9% fall reported within the prior-year quarter. Within the fourth quarter, internet restaurant development was 3.3% in opposition to a 1.1% decline reported within the prior-year quarter.

Popeye’s Louisiana Kitchen generated revenues of $145 million in fourth-quarter 2021, up 2.1% from the prior-year quarter’s ranges. System-wide gross sales development got here in at 7.2% 12 months over 12 months in opposition to a decline of 0.9% recorded within the prior-year quarter. Internet restaurant development got here in at 7.4% in contrast with 4.1% development within the prior-year quarter. Comps within the phase dropped 0.4% in contrast with a fall of 5.8% reported within the prior-year quarter.

Working Efficiency

Within the quarter beneath overview, the corporate’s adjusted EBITDA elevated 16.6% 12 months over 12 months to $584 million. On an natural and reported foundation, the upside was pushed by a rise in Tim Hortons, Burger King and Popeye’s adjusted EBITDA.

Phase-wise, Tim Horton’s adjusted EBITDA elevated 13.1% from the year-ago quarter’s determine. Burger King’s adjusted EBITDA rose 22% 12 months over 12 months. Furthermore, Popeye’s adjusted EBITDA moved up 5.6% from the year-ago quarter’s ranges.

Money and Capital

Restaurant Manufacturers ended the fourth quarter with a money and money equal steadiness of $1,087 million in contrast with $1,560 million reported within the prior-year interval. As of Dec 31, 2021, long-term debt (internet of present portion) stood at $12.9 billion in contrast with $12.4 billion as of Dec 31, 2020.

The corporate’s board of administrators introduced a dividend payout of 54 cents per widespread share and partnership exchangeable unit of Restaurant Manufacturers Worldwide Restricted Partnership for first-quarter 2022. The dividend is payable on Apr 6, 2022, to shareholders of document on the shut of enterprise as of Mar 23, 2022.

2021 Highlights

Whole revenues in 2021 amounted to $5,739 million in contrast with $4,968 million in 2020.

Adjusted EBITDA in 2021 got here in at $2,248 million in contrast with $1,864 million in 2020.

In 2021, diluted earnings per share (EPS) got here in at $2.82 per share in contrast with $2.03 reported within the earlier 12 months.

Zacks Rank

Restaurant Manufacturers at the moment carries a Zacks Rank #4 (Promote).

Some better-ranked shares within the Zacks Retail-Wholesale sector embrace MarineMax, Inc. HZO, Arcos Dorados Holdings Inc. ARCO and Tapestry, Inc. TPR. You possibly can see the whole checklist of as we speak’s Zacks #1 Rank (Robust Purchase) shares right here.

MarineMax sports activities a Zacks Rank #1. The corporate has a trailing four-quarter earnings shock of 55.8%, on common. Shares of the corporate have elevated 7.1% previously 12 months.

The Zacks Consensus Estimate for MarineMax’s 2022 gross sales and EPS suggests development of 13.9% and 16.2%, respectively, from the year-ago interval’s ranges.

Arcos Dorados carries a Zacks Rank #2 (Purchase). ARCO has a long-term earnings development of 24.7%. Shares of the corporate have elevated 33.2% previously 12 months.

The Zacks Consensus Estimate for Arcos Dorados’ 2022 gross sales and EPS suggests development of 9.8% and 157.7%, respectively, from the year-ago interval’s ranges.

Tapestry carries a Zacks Rank #2. The corporate has a trailing four-quarter earnings shock of 28.2%, on common. Shares of the corporate have elevated 4.3% previously 12 months.

The Zacks Consensus Estimate for Tapestry’s 2022 gross sales and EPS suggests development of 17.6% and 22.9%, respectively, from the year-ago interval’s ranges.

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