Restaurant Brands (NYSE:QSR) reported a modest outperformance in its first quarter earnings, delivering an adjusted EPS of $0.73, slightly above the analyst consensus of $0.72. Revenue for the quarter also surpassed expectations, coming in at $1.74 billion against the predicted $1.7 billion. The company's stock edged up by +0.62% in response to the earnings release, indicating a positive, albeit restrained, investor reaction to the slight earnings beat.
Josh Kobza, CEO of QSR, attributed the company's solid performance to the dedication of teams and franchisees in providing high-quality products and services. QSR's consolidated comparable sales grew by 4.6%, with notable increases across its brands, including Tim Hortons in Canada and Popeyes in the U.S. The company's system-wide sales saw an 8.1% rise compared to the previous year, contributing to a net income of $328 million, up from $277 million.
The company's operational success was further evidenced by an 8.1% increase in system-wide sales year over year (YoY), and a 7.7% organic rise in adjusted operating income. However, adjusted diluted EPS saw a slight decrease of 0.9% organically from the previous year. These figures reflect the company's ability to translate sales growth into tangible financial gains for both franchisees and the company itself.
QSR's strategic initiatives, including a $300 million expanded remodel program for Burger King in the U.S., aim to modernize up to 90% of its restaurants by 2028, potentially bolstering future growth. The company's segments each contributed to the overall positive results, with Tim Hortons, Burger King, Popeyes Louisiana Kitchen, and its international operations all reporting increases in system-wide sales.
Looking ahead, QSR continues to expect capital expenditures and adjusted interest expenses to be in the range of approximately $300 million and between $555 million and $565 million, respectively, for 2024. The company's long-term outlook remains optimistic, with goals including over 3% in comparable sales growth and over 5% in net restaurant growth annually from 2024 to 2028.
QSR's financial results and forward-looking investments reflect a company poised for sustained growth, backed by strong brand performance and strategic planning. The company's next quarter and full-year guidance remain in line with its long-term objectives, aiming to achieve system-wide sales growth and adjusted operating income growth at a pace equal to or faster than its sales expansion.