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Restaurant Brands Sales Building Efforts to Drive Growth

Zacks Equity Research

Restaurant Brands International Inc.’s QSR solid expansion efforts, various sales-building strategies and focus on franchise business model bode well. Restaurant Brands is also optimistic about its strategies that are likely to drive comparable sales and profitability for all three iconic brands in the long run. Let’s delve deeper.

Factors Driving Growth

Restaurant Brands believes that there is a huge opportunity to strengthen all its brands worldwide by expanding its presence in existing markets as well as entering new markets. Internationally, it has more than 26,000 restaurants, which includes more than 18,000 restaurants at Burger King.

Restaurant Brands also continues to evaluate opportunities to speed up international development of all the three brands by establishing master franchisees with exclusive development rights as well as joint ventures with new and existing franchisees.

Furthermore, the company is confident about the Tim Hortons brand’s long-term growth prospects and remains committed toward delivering on its international growth strategy of expanding the brand worldwide. Evidently, the company has formed master franchise joint venture partnerships (MFJVs) for the brand in Mexico and Spain.

Restaurant Brands also continues to focus on improving its level of service through comprehensive training, improved restaurant operations, reimaging efforts and attractive menu options to enhance overall guest satisfaction and drive comps.

Restaurant Brands, which shares space with Brinker International, Inc. EAT, Chipotle Mexican Grill, Inc. CMG and Cracker Barrel Old Country Store, Inc. CBRL has a solid strategy at Burger King that focuses on enhancing restaurant image, technology, operations and marketing. This strategy is likely to drive sustainable comps over the long run.

As of now, the company has made significant progress with respect to remodeling and modernizing its restaurants in the United States. Also, healthy progress on other technology-related initiatives at Burger King has been realized in the second quarter 2019. Furthermore, Restaurant Brands launched Burger King mobile order and pay app in the United States. The company continues to expand the size of its delivery program, with availability in nearly 3,500 restaurants in the United States and more than 8,700 restaurants worldwide. In the second quarter, comparable sales at Burger King rose 3.6% owing to robust international sales.

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Restaurant Brands International Inc. (QSR) : Free Stock Analysis Report
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