Restaurant Brands International inc. says it expects its quick-serve empire to span 40,000 restaurants achieving a collective US$60 billion in sales by 2028. Details from inside Firehouse Subs in Burlington, Ont. on Thursday, January 25, 2024. THE CANADIAN PRESS/Peter Power
TORONTO – The owner of the Tim Hortons and Burger King chains said it expects its quick-serve empire to span 40,000 restaurants and to achieve a collective US$60 billion in sales by 2028.
Restaurant Brands International Inc., which also owns Popeyes Louisiana Kitchen and Firehouse Subs, currently has about 30,000 restaurants and in its most recent financial year saw US$42.8 billion in system-wide sales.
Speaking at an investor day in New York on Thursday, CEO Josh Kobza said the company sees a path to deliver five per cent net restaurant growth and eight per cent system-wide sales growth within the next five years.
“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 in a news release.
“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.”
For Tim Hortons – which already occupies 70 per cent of the market share for hot coffee in Canada, as well as 65 per cent of the market share for the baked goods segment – RBI will focus on growing afternoon and evening sales through wraps, bowls, savory pastries, snack foods and other new products.
Tim Hortons is also planning to grow its cold beverage sales from its 25 per cent market share for 2023 by focusing on cold brew, fruit quenchers, specialty beverages and variations of its popular Iced Capp.
Tim Hortons’ U.S. business is expected to be the largest contributor of net restaurant growth in RBI’s home markets, the company said Thursday, with the goal of reaching 1,000 Tim’s locations south of the border by 2028.
For Burger King, RBI is focusing on fully modernizing and then refranchising the vast majority of its portfolio of approximately 1,000 restaurants – an initiative it expects to be completed within five to seven years.
RBI expects to grow the Popeyes chain in both Canada and the U.S., forecasting an increase from nearly 3,400 restaurants in 2023 to more than 4,200 by 2028.
With Firehouse Subs, the company wants to expand in the U.S. and Canadian markets to help it reach 800 new locations by 2028.
RBI executives said they expect the overall company’s adjusted operating income to hit $3.2 billion by 2028, up from US$2.2 billion in its last fiscal year.
This report by The Canadian Press was first published Feb. 15, 2024.
Companies in this story: (TSX:QSR)
