Restaurant Brands International Inc. Chief Executive Officer, Josh Kobza, and Executive Chairman, Patrick Doyle, have shared their confidence in the long-term global growth outlook for popular chains Tim Hortons, Burger King, Popeyes and Firehouse Subs.
Kobza provided guidance for investors that the company has confidence it will achieve a minimum of 40,000 restaurants, USD $60 billion in system-wide sales and USD $3.2 billion in Adjusted Operating Income by 2028 by delivering average annual results over the next five years of three percent plus comparable sales, five percent plus net restaurant growth and eight percent plus system-wide sales growth translating to at least eight percent Adjusted Operating Income growth.
"We're proud of the work our franchisees and their teams are doing to deliver quality food, excellent service and convenience to guests," said Kobza.
"Our four iconic brands have strong restaurant fundamentals and clear runways for growth. Our long-term investment horizon should result in compelling business performance and drive at least low double digit annual total shareholder returns over the next five years."
Doyle said that when the sum is added for each part of the company, there is a remarkable combination of growth drivers.
"The outlook we are sharing for growth is really the lowest average performance that we expect over the next five-years, with real upside potential from there," said Doyle.
Kobza summarised the strong fundamentals and growth drivers for each of the Company's five business segments and provided an update on the Company's capital allocation priorities.
The Company reiterated its commitment to a balanced capital allocation framework throughout the outlook period, including continuing to invest behind high-return growth opportunities across its brands, targeting a 50 to 60 percent long-term dividend payout ratio and consistently growing its dividend with earnings, maintaining net total leverage between three-times to five-times, repurchasing shares at attractive valuations over time, and preserving balance sheet flexibility for potential strategic opportunities.
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