In a press release dated February 10th Restaurant Brands International (QSR) announced results for the 4th Quarter and FY 2019 ending December 31st 2019.
The following table summarizes the results for the period compared with the values for the corresponding quarter of the previous fiscal year (Values expressed as US$ x 1,000 except EPS)
|
4th Quarter Ending
|
Dec. 31st 2019
|
Dec. 31st 2019
|
Difference (%)
|
|
Sales: 1
|
$1,479,000
|
$1,385,000
|
+6.8
|
|
Gross profit, Company stores:
|
$148,000
|
$142,000
|
+4.2
|
|
Operating income:
|
$511,000
|
$516,000
|
-1.0
|
|
Pre-tax Income
Net Income
|
$366,000
$257,000
|
$386,000
$301,000
|
-5.2
-14.6
|
|
Diluted earnings per share:
|
$0.54
|
$0.64
|
-15.6
|
|
Gross Margin, Company stores: (%)
|
23.6
|
23.2
|
+1.7
|
|
Operating Margin (%)
|
34.5
|
37.3
|
-7.5
|
|
Profit Margin (%)
|
17.3
|
21.7
|
-20.3
|
|
Long-term Debt:
|
$12,848,000
|
$11,823,000
|
+8.7
|
|
12 Months Trailing:
|
|
|
|
|
Return on Assets (%)
|
5.9
|
|
|
|
Return on Equity (%)
|
28.2
|
|
|
|
Operating Margin (%)
|
35.6
|
|
|
|
Profit Margin (%)
|
11.5
|
|
|
|
Total Assets 2
|
$22,360,000
|
$20,141,000
|
+11.0
|
|
Market Capitalization
|
$19,810,000
|
|
|
- Revenue was obtained in the proportion of 42.4 percent from Company stores in 2019; 44.2 percent 2018.
2. In 2019 Goodwill and intangibles represented 72.5 percent of total assets; 79.2 percent in 2018.
For FY 2019 QSR posted $468 million net earnings on sales of $5.60 billion. This compares with FY 2018 net earnings of $532 million on sales of $5.36 billion
Consolidated system-wide sales growth in FY 2019 attained 9.9 percent (U.S. 5.2 percent)
QSR either operates of franchises 4,937 Tim Horton's, 18,385 Burger King and 3,316 stores.
The Q4 performance of operating segments was:-
Tim Horton's posted an EBITDA of $297 million on sales of $872 million.
Burger King posted an EBITDA of $266 million on sales of $462 million.
Popeye's Louisiana Kitchen posted an EBITDA of $59 million on sales of $145 million.
52-Week Range in Share Price: $60.58 to $79.46. 50-day moving average $63.47
Market Close Monday 9th pre-release $65.62 Close Tuesday post-release $65.62
Forward P/E 22.3 PEG Ratio 1.13
In commenting on results Jose Cil, CEO of QSR commented, "We have three iconic restaurant brands that are together growing rapidly around the world. Last year, we shared a long-term aspiration to build the most-loved restaurant brands in the world and have more than 40,000 restaurants open within 8-10 years. I'm proud that our 2019 results have us solidly on track."
"Burger King delivered its strongest year of restaurant growth in the last two decades. Popeyes launched an iconic Chicken Sandwich that has proven to be a game changer for the brand in every way. At Tim Horton's, our performance did not reflect the incredible power of our brand and it is clear that we have a large opportunity to refocus on our founding values and what has made us famous with our guests over the years, which will be the basis for our plan in 2020."