Restaurant Brands International

Last updated

Restaurant Brands International Inc.
Company type Public
Industry Foodservice
FoundedDecember 15, 2014;9 years ago (2014-12-15)
Headquarters
Toronto, Ontario
,
Canada
Number of locations
29,456 (December 31, 2021)
Area served
Worldwide
Key people
 J. Patrick Doyle
(Executive Chairman)
Joshua Kobza
(CEO)
RevenueIncrease2.svg US$5.73 billion (2021)
Increase2.svgUS$2.248 billion (2021)
Increase2.svgUS$1.25 billion (2021)
Total assets Increase2.svgUS$23.246 billion (2021)
Total equity Increase2.svgUS$3.853 billion (2021)
Owners 3G Capital (30.8%)
Capital World Investors (7.9%)
Pershing Square Funds (6.3%)
Number of employees
6,300
Subsidiaries Burger King
Tim Hortons
Popeyes
Firehouse Subs
Website rbi.com
Footnotes /references
[1] [2] [3]

Restaurant Brands International Inc. (RBI) is a Canadian-American multinational fast food holding company. It was formed in 2014 by the $12.5 billion merger between American fast food restaurant chain Burger King and Canadian coffee shop and restaurant chain Tim Hortons, and expanded by the 2017 purchase of American fast-food chain Popeyes. The company is the fifth-largest operator of fast food restaurants in the world behind Subway, McDonald's Corporation, Starbucks and Yum! Brands. They are based alongside Tim Hortons in Toronto (previously Oakville, Ontario). [4] For tax purposes, Burger King and Popeyes retain their existing operations and headquarters, both in Miami. The 2014 merger focused primarily on expanding the international reach of the Tim Hortons brand and providing financial efficiencies for both companies.

Contents

3G Restaurant Brands Holdings LP, an affiliate of the Brazilian investment company 3G Capital, owns a 32% stake in Restaurant Brands International. [5] The company is publicly traded on the New York Stock Exchange and the Toronto Stock Exchange.

In March 2023, Joshua Kobza was named the CEO of Restaurant Brands International, replacing Jose Cil, who had held the role since 2019.

History

On August 24, 2014, American fast-food chain Burger King announced that it was in negotiations to merge with the Canadian coffee shop and restaurant chain Tim Hortons. [6] The proposed merger would involve a tax inversion into Canada, with a new holding company majority-owned by Burger King's current majority-owner, 3G Capital, and the remaining shares in the company held by current Burger King and Tim Hortons shareholders. A Tim Hortons representative stated that the proposed merger would allow Tim Hortons to leverage Burger King's resources for international growth; the two chains would retain separate operations post-merger. [7] News of the proposal caused Tim Hortons' shares to increase in value by 28 percent. [8]

On August 25, 2014, Burger King officially confirmed its intent to acquire Tim Hortons Inc. in a deal totaling CDN$12.5 billion (US$11.4 billion). [9] 3G Capital purchased the company at $65.50 per share, and existing shareholders received $65.50 in cash and 0.8025 shares in the new holding company: per-share—all-cash ($88.50) and all-shares (3.0879) options would also be available. Due to its iconic status in Canadian culture, CEO Marc Caira reassured the integrity of Tim Hortons following the purchase, stating that the acquisition would "enable us to move more quickly and efficiently to bring Tim Hortons' iconic Canadian brand to a new global customer base". [8] [10]

Although tax inversions, a process in which a company moves its headquarters to a country with a lower tax rate but maintains the majority of their operations in their previous location, had been a recent financial trend, it did not have as much of an impact on Burger King's reincorporation in Canada. The corporate tax rate in the United States was at the time 39.1% (since then lowered to 21%), while Canada's corporate tax rate is only 26%; however, Burger King had already used various sheltering techniques to reduce its tax rate to 27.5%. As a high-profile instance of tax inversion, news of the merger was criticized by U.S. politicians, who felt that the move would result in a loss of tax revenue to foreign interests, and could result in further government pressure against inversions (which had, until the Burger King merger, been primarily invoked by pharmaceutical firms). [11] [12] [7] [9] 3G Capital co-founder Alex Behring denied that the merger was tax-related, stating that it was "fundamentally about growth and creating value through accelerated expansion". [13]

The deal was approved in Canada by the Competition Bureau on October 28, 2014, ruling that the deal was "unlikely to result in a substantial lessening or prevention of competition". [14] The deal was approved by Minister of Industry James Moore on December 4, 2014; the two companies agreed to conditions, requiring that the Burger King and Tim Hortons chains retain separate operations, not combine locations in Canada and the United States, maintain "significant employment levels" at the Oakville headquarters, and ensure that Canadians make up at least 30% of Tim Hortons' board of directors. [15] Tim Hortons shareholders approved the merger on December 9, 2014; the same day, it was announced that the new holding company would be known as Restaurant Brands International, and trade under the ticker symbol QSR. Vice-chairman Marc Caira felt that the merger was the "next chapter" for Tim Hortons, envisioning a "bolder, more assertive, and dynamic Tim Hortons in the future" alongside its prospects for international expansion. [13] [16]

In February 2024, RBI said it anticipates 40,000 restaurants worldwide by 2028, up from 31,070 across its various brands at the end of fiscal 2023. [17]

Acquisitions

On February 21, 2017, RBI announced its intent to acquire Popeyes Louisiana Kitchen for US$1.8 billion at US$79 per share. [18] On March 27, 2017, the deal closed with RBI purchasing Popeyes at $79 per share via Orange, Inc, an indirect subsidiary of RBI. [19]

On November 15, 2021, RBI announced its intent to acquire Firehouse Subs for US$1 billion. [20] The acquisition was completed on December 15, 2021. [21]

Finances

YearRevenue
in mil. USD$		Net income
in mil. USD$		Total assets
in mil. USD$		Employees (company owned only)Systemwide restaurants
20141,198.8−269.321,3434,60019,043
20154,052.2511.718,411.14,30019,416
20164,145.8955.919,124.94,30020,351
20174,576.11,235.321,223.56,20024,407
20185,357.01,144.020,141.06,00025,744
20195,603.01,111.022,360.06,30027,086
20204,968.0750.022,777.05,20027,025
20215,739.01,253.023,246.05,70029,456

[22]

Ownership and leadership

3G Capital (which held a 71% majority stake in Burger King) holds a 32% stake in Restaurant Brands International. [5] Berkshire Hathaway, which partially funded the merger, held a 4.8% stake in the mid to late 2010s. [23] Previous Tim Hortons shareholders hold a sizeable share of the combined company. Until early 2019, Daniel Schwartz served as CEO of the company, with previous Tim Hortons CEO Marc Caira being vice-chairman and director. In January 2019, Jose Cil was named the CEO of Restaurant Brands International, and Schwartz was named the executive chairman of the company. [24]

In August 2020, Berkshire Hathaway disclosed that they had completely sold their stake in RBI. [25]

See also

Related Research Articles

<span class="mw-page-title-main">Burger King</span> Global chain of hamburger fast food restaurants headquartered in Florida

Burger King Corporation is an American multinational chain of hamburger fast food restaurants. Headquartered in Miami-Dade County, Florida, the company was founded in 1953 as Insta-Burger King, a Jacksonville, Florida–based restaurant chain. After Insta-Burger King ran into financial difficulties, its two Miami-based franchisees David Edgerton (1927–2018) and James McLamore (1926–1996) purchased the company in 1959 and renamed it "Burger King". Over the next half-century, the company changed hands four times and its third set of owners, a partnership of TPG Capital, Bain Capital, and Goldman Sachs Capital Partners, took it public in 2002. In late 2010, 3G Capital of Brazil acquired a majority stake in the company, in a deal valued at US$3.26 billion. The new owners promptly initiated a restructuring of the company to reverse its fortunes. 3G, along with partner Berkshire Hathaway, eventually merged the company with the Canadian-based doughnut chain Tim Hortons, under the auspices of a new Canadian-based parent company named Restaurant Brands International.

<span class="mw-page-title-main">Tim Hortons</span> Multinational coffeehouse and restaurant chain

Tim Hortons Inc., commonly nicknamed Tim's or Timmie's, is a multinational coffeehouse and restaurant chain based in Canada with headquarters in Toronto, it serves coffee, donuts, sandwiches, and other fast-food items. It is Canada's largest quick-service restaurant chain, with 5,701 restaurants in 13 countries, as of September 2023.

<span class="mw-page-title-main">Vodafone</span> British multinational telecommunications company

Vodafone Group plc is a British multinational telecommunications company. Its registered office and global headquarters are in Newbury, Berkshire, England. It predominantly operates services in Asia, Africa, Europe, and Oceania.

<span class="mw-page-title-main">Firehouse Subs</span> US-based restaurant chain

Firehouse Restaurant Group, Inc., doing business as Firehouse Subs, is a Canadian-owned American fast casual restaurant chain based in Jacksonville, Florida that specializes in submarine sandwiches. It was founded in 1994 by former firefighter brothers Chris and Robin Sorensen. Since December 15, 2021, it has been a subsidiary of Restaurant Brands International, which also owns the chains Burger King, Popeyes, and Tim Hortons.

<span class="mw-page-title-main">Alliance Boots</span> Pharmaceutical company

Alliance Boots was a multinational pharmacy-led health and beauty group with corporate headquarters in Bern, Switzerland and operational headquarters in Nottingham and Weybridge, United Kingdom.

<span class="mw-page-title-main">Carrols Restaurant Group</span> American franchisee company

Carrols Restaurant Group, Inc. is an American franchisee company and is the largest Burger King franchisee in the world; Carrols owns and operates over 1,000+ Burger Kings, and 55 Popeyes restaurants. The company has operated Burger Kings since 1976 in locations across 23 U.S. states.

The predecessor to what is now the international fast food restaurant chain Burger King was founded on July 23, 1954, in Jacksonville, Florida, as Instant Burger King. Inspired by the McDonald brothers' original store location in San Bernardino, California, the founders and owners, Keith J. Cramer and his stepfather Matthew Burns, began searching for a concept. After purchasing the rights to two pieces of equipment called "Insta" machines, the two opened their first stores around a cooking device known as the Insta-Broiler. The Insta-Broiler oven proved so successful at cooking burgers, they required all of their franchises to carry the device. After the original company began to falter in 1959, it was purchased by its Miami, Florida, franchisees James McLamore and David R. Edgerton. The two initiated a corporate restructuring of the chain; the first step being to rename the company, Burger King. The duo ran the company as an independent entity for eight years, eventually expanding to over 250 locations in the United States, when they sold it to the Pillsbury Company in 1967.

<span class="mw-page-title-main">The Wendy's Company</span> American multinational restaurant holding company

The Wendy's Company is an American holding company for the major fast food chain Wendy's. Its headquarters are in Dublin, Ohio. The company's principal subsidiary, Wendy's International, is the franchisor of Wendy's restaurants.

<span class="mw-page-title-main">Tax inversion</span> Corporate relocation to a lower tax location

A tax inversion or corporate tax inversion is a form of tax avoidance where a corporation restructures so that the current parent is replaced by a foreign parent, and the original parent company becomes a subsidiary of the foreign parent, thus moving its tax residence to the foreign country. Executives and operational headquarters can stay in the original country. The US definition requires that the original shareholders remain a majority control of the post-inverted company. In US federal legislation a company which has been restructured in this manner is referred to as an "inverted domestic corporation", and the term "corporate expatriate" is also used.

Kahala Brands is a wholly owned subsidiary of Canada-based MTY Food Group Inc. of Montreal, Quebec. Based in Scottsdale, Arizona, Kahala is one of North America's largest holding company of franchise fast food restaurant companies. In May 2016, the publicly traded Canadian MTY Food Group announced a friendly takeover deal with the Kahala Brands. MTY agreed to pay about US$300 million to acquire Kahala. The two companies generated nearly $2 billion in revenues in the previous year. Jeff Smit was chosen to lead the US operations of MTY.

<span class="mw-page-title-main">Tata Docomo</span> Indian telecommunications company

Tata Docomo was an Indian mobile network operator, a wholly owned subsidiary of Tata Teleservices deriving its name from NTT Docomo who invested in the company in 2008. In October 2017, Bharti Airtel announced a merger deal with Tata Teleservices and the acquisition of Tata Docomo. As of 21 July 2019, all Tata Docomo users are merged with Airtel network and provided with all the Airtel services.

<span class="mw-page-title-main">Exor (company)</span> Investment company incorporated in Netherlands

Exor N.V. is a Dutch holding company incorporated in the Netherlands and controlled by the Agnelli family through privately held company Giovanni Agnelli B.V. In 2022, it recorded revenues of more than $41 billion, becoming the 317th largest group in the world by revenue according to the 2022 Fortune Global 500 list. It has a history of investments running over a century, including auto and truck manufacturers Stellantis, Ferrari, and Iveco, agricultural and construction firm CNH Industrial, the association football club Juventus, the international newspaper The Economist, and the Italian media company GEDI Gruppo Editoriale. In May 2023, Exor launched its investment management company Lingotto.

3G Capital is a global investment firm and private partnership built on an owner-operator approach to investing over a long-term horizon. Founded in 2004, 3G Capital evolved from the Brazilian investment office of Jorge Paulo Lemann, Carlos Alberto Sicupira, and Marcel Herrmann Telles. 3G Capital is led by Alex Behring, Co-Founder and Co-Managing Partner, and Daniel Schwartz, Co-Managing Partner.

<span class="mw-page-title-main">Coffee wars</span> Competition between coffee businesses for market share

Coffee wars, sometimes referred to as caffeine wars, involve a variety of sales and marketing tactics by coffeehouse chains and espresso machine manufacturers to increase brand and consumer market share. In North America belligerents in these wars typically include large coffeehouses, such as Starbucks, Dunkin', McDonald's, and Tim Hortons. According to The Economist, the largest coffee war of the late 2000s was between Starbucks and McDonalds in the United States. The U.S. market has, since the early 2010s, been primarily contested by its two largest players, Starbucks and Dunkin'. Since 2020, competition over the Chinese coffee market has intensified between Starbucks and Luckin Coffee.

Jollibee Foods Corporation is a Filipino multinational company based in Pasig, Metro Manila, Philippines. JFC is the owner of the fast food brand Jollibee.

Alexandre Behring da Costa, is a Brazilian billionaire businessman. He is a co-founder and managing partner of 3G Capital, a global investment firm known for its investments in Anheuser-Busch InBev, Restaurant Brands International, Kraft Heinz, and Hunter Douglas. As of March 2024, Forbes estimated his net worth at US$6.2 billion.

<span class="mw-page-title-main">TDR Capital</span> British private equity firm headquartered in London

TDR Capital LLP is a British private equity firm headquartered in London, England.

Daniel Schwartz is an American businessman, executive, and investor. He is currently the Co-Managing Partner of 3G Capital, a global investment firm and private partnership known for its long-term investments in prominent companies such as Anheuser-Busch InBev, Restaurant Brands International, Kraft Heinz, and Hunter Douglas. Schwartz played a pivotal role in 3G Capital's 2010 acquisition of Burger King, where he served as CFO, COO, CEO, and Co-Chairman of the Board of Directors from 2010 to 2022 and continues to serve on the Board of Directors today. In 2017, Daniel was recognized by Forbes as Top 40 under 40 for his role in turning around Burger King.

References

  1. ↑ "2021 Proxy Statement" (PDF). Restaurant Brands International. Retrieved April 22, 2021.
  2. ↑ https://s26.q4cdn.com/317237604/files/doc_financials/2020/ar/Restaurant-Brands-International-%E2%80%93-2019-SEC-Form-10-K-Annual-Report.pdf [ bare URL PDF ]
  3. ↑ "RESTAURANT BRANDS INTERNATIONAL INC. 2019 Form 10-K" (PDF).
  4. ↑ Kalinowski, Tess (April 17, 2018). "Tim Hortons to move its Canadian head office". Toronto Star . Retrieved April 17, 2018.
  5. 1 2 "3G Capital selling $3 billion shares in Burger King owner". Reuters. September 4, 2019.
  6. ↑ Sieniuc, Kat; Atkins, Eric (August 24, 2014). "Burger King in talks to acquire Tim Hortons". The Globe and Mail. Retrieved August 25, 2014.
  7. 1 2 Hoffman, Liz; Mattioli, Dana (August 25, 2014). "Burger King in Talks to Buy Tim Hortons in Canada Tax Deal" . Retrieved August 25, 2014.
  8. 1 2 Evans, Pete (August 26, 2014). "Tim Hortons, Burger King agree to merger deal". CBC News. Retrieved August 26, 2014.
  9. 1 2 De La Merced, Michael (August 26, 2014). "Burger King to Buy Tim Hortons for $11.4 Billion". The New York Times. Retrieved August 26, 2014.
  10. ↑ Atkins, Eric; Nelson, Jacqueline (August 24, 2014). "Burger King, Tim Hortons ink merger deal for $12.5-billion". The Globe and Mail. Retrieved August 26, 2014.
  11. ↑ Puzzanghera, Jim (August 25, 2014). "Burger King, Tim Hortons talks could turn up heat on tax inversions". Los Angeles Times. Retrieved August 26, 2014.
  12. ↑ McKinnon, John D.; Paletta, Damian (August 25, 2014). "Burger King-Tim Hortons Merger Raises Tax-Inversion Issue". Wall Street Journal. Retrieved August 26, 2014.
  13. 1 2 Shaw, Hollie (December 9, 2014). "Tim Hortons enters 'next chapter' as shareholders approve Burger King's $12.5 billion takeover". Financial Post. Retrieved December 10, 2014.
  14. ↑ Evans, Pete (October 28, 2014). "Tim Hortons, Burger King deal OK'd by Competition Bureau". CBC News. Retrieved December 10, 2014.
  15. ↑ Shaw, Hollie (December 4, 2014). "Burger King promises to ramp up Tim Hortons' U.S. expansion as Ottawa approves takeover". Financial Post. Retrieved December 10, 2014.
  16. ↑ "Tim Hortons, Burger King finalize merger to form Restaurant Brands International". Edmonton Journal. Canadian Press. December 12, 2014. Archived from the original on December 16, 2014. Retrieved December 13, 2014.
  17. ↑ "Burger King parent Restaurant Brands International expects 40K restaurants by 2028". Nation's Restaurant News. February 15, 2024. Retrieved February 16, 2024.
  18. ↑ Evans, Pete (February 21, 2017). "Restaurant Brands to Add Popeyes to Tim Hortons and Burger King". CBC News . Retrieved February 22, 2017.
  19. ↑ "Restaurant Brands International Inc. Announces Successful Completion of its Tender Offer to Purchase All of the Outstanding Shares of Popeyes Louisiana Kitchen, Inc". www.prnewswire.com.
  20. ↑ Lucas, Amelia (November 15, 2021). "Burger King parent Restaurant Brands International buys Firehouse Subs for $1 billion". CNBC. Retrieved November 16, 2021.
  21. ↑ "Restaurant Brands International Inc. Completes Acquisition of Firehouse Subs and Announces Increase in Borrowings Under Existing Term Loan A Facility" (Press release). PR Newswire. December 15, 2021.
  22. ↑ "Restaurant Brands Financial Statements 2012-2020 | QSR". www.macrotrends.net.
  23. ↑ Buhayar, Noah (December 15, 2014). "Berkshire to Hold Larger Stake in Burger King-Tim Hortons Parent". Bloomberg Businessweek. Retrieved December 15, 2014.
  24. ↑ Singh, Shradha (January 23, 2019). "Restaurant Brands names Burger King boss Jose Cil as CEO". Reuters. Retrieved March 20, 2019.
  25. ↑ "Warren Buffett's Berkshire Hathaway Sells Off Its Restaurant Brands Stake". NASDAQ. Retrieved October 4, 2020.
This page is based on this Wikipedia article
Text is available under the CC BY-SA 4.0 license; additional terms may apply.
Images, videos and audio are available under their respective licenses.