Restaurant Brands' (TSX:QSR) Q3 profit surges to $328M. Buy alert?

Highlights

  • In Q3 2021, Restaurant Brands recorded increased total revenues of US$ 1.49 billion.
  • Restaurant Brands is the owner of food outlets like Burger King, Popeyes and Tim Hortons.
  • Restaurant Brands declared a dividend of US$ 0.53 per unit to the shareholders, and it will be payable on January 5, 2022.

Restaurant Brands International Inc. (TSX:QSR) announced results for the third quarter ended September 30, 2021, and revealed that its global system-wide sales jumped 11 per cent year-over-year (YoY).

Jose Cil, the chief executive officer at Restaurant Brands, said that having a diversified business across three brands in more than 100 countries helped the company achieve solid quarterly results. 

The Oakville-based multinational fast food holding company owns iconic brands like Burger King, Popeyes and Tim Hortons. According to the company website, it had US$ 33 billion in annual system-wide sales across 27,000 restaurants in 2020. 

Restaurant Brands' (TSX:QSR) stock and financial performance: 

In Q3 2021, Restaurant Brands recorded increased total revenues of US$ 1.49 billion, compared to US$ 1.337 billion in the third quarter of 2020. Meanwhile, the net income attributable to shareholders rose to US$ 328 million in Q3 2021 from US$ 223 million in Q3 2020. 

The diluted earnings per share (EPS) were US$ 0.7 in the third quarter of this year. In contrast, Restaurant Brands' diluted EPS were US$ 0.47 in Q3 2020. 

Restaurant Brands announced third quarter results

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For the nine months starting January and ending on September 30, 2021, the net cash provided by operating activities was US$ 1.26 billion. In the same comparable period, the net cash was US$ 608 million.  

Also Read: 5 TSX retail stocks to buy as industry rebounds

The QSR stock declined by 1.6 per cent year-to-date (YTD) and expanded by two per cent in the last 12 months, outpacing the Toronto Stock Exchange 300 Composite Index as it declined by 21.7 per cent.

Bottom line

According to the company CEO, an efficient business model of Restaurant Brands helped them generate a solid free cash flow. The company plans to invest further in the business and increase shareholder returns. 

During Q3 2021, the fast-food holding company returned over US$ 425 million of capital to shareholders, which included repurchasing common stock worth US$ 180 million. 

Restaurant Brands declared a dividend of US$ 0.53 per unit to the shareholders.

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