Executive Summary

Q4 2024 delivered solid top-line and profit growth: total revenues rose to $2.296B and income from operations increased 35% YoY to $635M; adjusted EBITDA reached $688M and adjusted diluted EPS was $0.81 .
Global comps were +2.5% with strength in International (+4.7%) and Tim Hortons Canada (+2.5%); system-wide sales grew +5.6% and net restaurants +3.4% YoY .
2025 guidance introduced: Segment G&A (ex-RH) $650–$670M; RH G&A ≈$100M; adjusted interest expense $500–$520M; capex/tenant inducements/incentives $400–$450M; dividend target $2.48 for 2025 (declared $0.62 for Q1) .
Estimates context: S&P Global consensus could not be retrieved due to API limits; third-party transcript page indicates Q4 EPS of $0.81 beat by $0.02 and revenue of $2.30B beat by ~$7M, but this is not SPGI-sourced .

What Went Well and What Went Wrong

What Went Well
- Tim Hortons surpassed $1B AOI for 2024; Q4 TH revenues and AOI rose on system-wide sales and lower G&A, with organic AOI +16.8% YoY in Q4; CEO emphasized “quality, service, and convenience” foundations driving outperformance versus global QSR peers .
- International delivered strong growth: Q4 system-wide sales +11.2% and comps +4.7%; adjusted operating income up (organic +7.0%); BK International +9.6% and PLK International +40.3% system-wide sales growth in Q4 .
- Burger King U.S. “Reclaim the Flame” Fuel the Flame investments completed; Royal Reset funding ramping with $133M funded of up to $550M; BK segment AOI up YoY in Q4 with lower G&A and net bad debt recoveries .
What Went Wrong
- Consolidated net income declined YoY due to lapping large 2023 tax benefits; Q4 net income was $361M vs $726M (driven by 2023 tax credits/reserve releases) .
- INTL segment experienced higher Segment F&P expenses from net bad debt, primarily Burger King China, pressuring AOI despite revenue strength .
- RH segment reflects remodel-related temporary closures at Carrols in Q4; BK RH restaurant-level dynamics noted and Q4 AOI modest at $14M; BK RH system-wide sales growth negative due to remodeling impacts .

Financial Results

Metric	Q2 2024	Q3 2024	Q4 2024
Revenue ($USD Billions)	$2.080	$2.291	$2.296
Income from Operations ($USD Millions)	$663	$577	$635
Net Income ($USD Millions)	$399	$357	$361
Diluted EPS ($)	$0.88	$0.79	$0.79
Adjusted Operating Income ($USD Millions)	$632	$652	$578
Adjusted EBITDA ($USD Millions)	$721	$748	$688
Adjusted Diluted EPS ($)	$0.86	$0.93	$0.81

Notes: Q4 YoY revenue +26.2% and AOI +13.5% on an as-reported basis; organic growth ex-FX and RH shown in non-GAAP schedules .

Segment breakdown (Q4 2024):

Segment	Total Revenues ($USD Millions)	Adjusted Operating Income ($USD Millions)
Tim Hortons (TH)	$1,027	$266
Burger King (BK)	$375	$78
Popeyes (PLK)	$201	$61
Firehouse Subs (FHS)	$58	$13
International (INTL)	$237	$146
Restaurant Holdings (RH)	$445	$14

KPIs:

KPI (Consolidated)	Q2 2024	Q3 2024	Q4 2024
System-wide Sales Growth (%)	5.0%	3.2%	5.6%
Comparable Sales (%)	1.9%	0.3%	2.5%
Net Restaurant Growth (%)	4.0%	3.8%	3.4%
System Restaurant Count (units)	31,324	31,525	32,125

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Segment G&A (excluding RH)	FY 2024	$640–$650M (incl. SBC $170–$175M)	—	Maintained 2024 guidance (context for prior period)
Adjusted Interest Expense, net	FY 2024	$565–$575M	—	Maintained 2024 guidance (context for prior period)
Capex, tenant inducements & incentives (ex-RH)	FY 2024	≈$300M	—	Maintained 2024 guidance (context for prior period)
Segment G&A (excluding RH)	FY 2025	—	$650–$670M	New range set
RH Segment G&A	FY 2025	—	≈$100M	New
Adjusted Interest Expense, net	FY 2025	—	$500–$520M	New lower range vs 2024
Consolidated capex, tenant inducements & incentives (incl. RH)	FY 2025	—	$400–$450M	New
Dividend per share/unit	FY 2025	—	Target $2.48 total; Q1 declared $0.62 payable Apr 4	New/Declared

Long-term algorithm reaffirmed: 3%+ comps, 5%+ NRG, 8%+ system-wide sales, AOI growth at least as fast as system-wide sales (2024–2028) .

Earnings Call Themes & Trends

Topic	Q2 2024 (Prev-2)	Q3 2024 (Prev-1)	Q4 2024 (Current)	Trend
BK U.S. “Reclaim the Flame” (Fuel the Flame/Royal Reset)	Fuel the Flame and Royal Reset funding continued; announced Royal Reset 2.0 additional $300M (2025–2028)	Funding continued; AOI supported by lower Fuel the Flame spend YoY	Fuel the Flame completed; Royal Reset funded $133M to date of up to $550M; BK U.S. comps +1.5% in Q4	Execution progressing; ad/modernization mix shifting
International growth and China dynamics	INTL revenue/ AOI growth with higher BK royalties; FX headwinds	INTL AOI offset by bad debt expense; FX headwinds	INTL comps +4.7%; higher Segment F&P expenses due to BK China bad debt	Growth strong; credit costs in China a watch point
Tim Hortons Canada performance	Comps +4.6%; AOI up on lower supply chain cost and G&A	Comps +2.7%; AOI increased; organic drivers highlighted	Comps +2.5% in Q4; AOI up; TH annual AOI >$1B milestone (call)	Sustained strength; efficiency-led
RH (Carrols BK & PLK China) operational cadence	RH segment established; initial AOI $14M for May 16–Jun 30	BK RH restaurant-level margin 12.4%; AOI $16M; remodel closures noted	Q4 RH AOI $14M; BK RH system-wide sales growth negative due to remodel closures; modeling notes for margin seasonality (call)	Transitional; refranchising intended
Macro/FX and tax impacts	FX headwinds at TH/INTL; equity method gain from Carrols boosts op income	FX headwinds; other operating expenses and tax increase weigh on net income	FX unfavorable at TH/INTL; net income lapping extraordinary 2023 tax benefits	Mixed; non-operational items normalize

Management Commentary

CEO Josh Kobza: “I am proud of our performance this year… focused on thoughtful marketing, operational improvements, and modern image to enhance the guest experience, drive franchisee profitability, and deliver long-term growth for our brands and shareholders.”
Investor call framing (participants listed): discussed sustaining “8%+ organic adjusted operating income growth” for 2025 and highlighted TH’s >$1B AOI milestone and International momentum (transcript sources) .

Q&A Highlights

RH margin seasonality: management guided Q1 restaurant-level EBITDA margin compression of 150–200 bps vs Q4’s ~12.3% due to seasonality, stepped-up ad levy after Fuel the Flame completion, and elevated beef costs .
International/China: noted net bad debt expenses tied to BK China; management continues to work toward partner solutions; INTL growth otherwise robust .
Franchisee profitability: home-market franchisee EBITDA remained solid with TH Canada C$305k, PLK US $255k, BK US $205k for 2024 (disclosed annually) .

Estimates Context

S&P Global consensus estimates unavailable due to API rate limit; therefore, results vs consensus cannot be anchored to SPGI at this time.
Third-party transcript page indicates Q4 EPS of $0.81 beat by $0.02 and revenue of ~$2.30B beat by ~$7M; treat as non-SPGI reference pending verification .

Key Takeaways for Investors

Operating momentum into 2025: management reiterated 8%+ organic AOI growth algorithm, supported by TH strength and INTL expansion; watch RH transition/seasonality in early 2025 .
BK U.S. inflection: Fuel the Flame completed, Royal Reset investment pipeline intact; expect modernization and ad spend mix to sustain sales and franchisee economics over 2025–2028 .
International growth vs credit costs: strong royalty growth across BK/PLK INTL; monitor bad debt in China and FX headwinds; any resolution with BK China partner could de-risk INTL AOI .
Capital deployment and leverage: ~$1B returned in 2024 and dividend target $2.48 for 2025; net leverage at 4.6x; 2025 adjusted interest expense guided below 2024 range, supporting EPS quality .
RH refranchising path: RH AOI modest and remodel-related disruptions near term; management intends to refranchise and return to a highly franchised model, a potential medium-term valuation positive .
Tax normalization: 2023 tax benefits created a high base; 2024 net income/ EPS reflect normalized tax rates; investors should focus on AOI/EBITDA trajectories .

Supporting press releases and materials:

Official Q4 press release and non-GAAP schedules (IR site) .
Q4 call announcement and access details .

Restaurant Brands International Limited Partnership (RSTRF)·Q4 2024 Earnings Summary