Restaurant Brands International (QSR) investor relations material

Strategic vision and growth targets

• Aims to be 99% franchised by 2028, targeting 5%+ net restaurant growth and double-digit earnings growth, with a focus on being the franchisor and employer of choice for top operators and talent.

• Plans to deliver 1,800 net new units per year by 2028, distributed across US/Canada, China, top 10 international markets, and other international markets.

• Burger King China turnaround and new JV with CPE expected to add over 200 net new units annually by 2028, targeting over 2,500 restaurants by 2030 and 4,000 by 2035.

• Top ten international markets expected to deliver 700 net new units per year, with average payback of 4.5 years and strong unit economics.

• Growth to be driven by international expansion, especially in China, and strong performance in top 10 global markets, with Firehouse Subs, Tim Hortons, and Popeyes as key contributors.

Operational improvements and brand initiatives

• Burger King’s Reclaim the Flame plan invested $700M in marketing, tech, and modernization, improving franchisee profitability and guest experience, with four years of industry comparable sales outperformance.

• Sizzle remodels, modern image upgrades, and tech enhancements (including AI-driven BK Assistant) are boosting operations, customer satisfaction, and training.

• Tim Hortons’ Back to Basics plan led to five years of positive same-store sales and strong franchisee relationships.

• Popeyes is refocusing on core menu, service, and value to regain positive same-store sales.

• Firehouse Subs accelerated net restaurant growth 5x since acquisition, with strong unit economics and digital expansion.

Financial outlook and capital allocation

• Organic adjusted operating income (AOI) expected to grow 8%+ annually through 2028, supported by net restaurant growth, royalty rate expansion, and G&A leverage.

• Plans to return over $1.6 billion to shareholders in 2026 via dividends and $500M in share repurchases, with majority of excess free cash flow allocated to buybacks as leverage goals are met.

• CapEx and cash inducements to step down to ~$300M annually from 2028, with half allocated to Tim Hortons.

• Net leverage targeted at low to mid 3x by 2028, aiming for investment-grade status, with a track record of deleveraging from 7.5x in 2014 to 4.2x in 2025.

• Dividend payout ratio to move toward 60%, with 52 consecutive quarters of growth.