Restaurant Brands International Business Model
What Does Restaurant Brands offer?
Restaurant Brands is one of the world’s largest quick service restaurant (“QSR”) companies with more than $30 billion in system-wide sales (in 2018) and over 26,000 restaurants in more than 100 countries and U.S. territories as of September 30, 2019. Their Tim Hortons®, Burger King® and Popeyes® brands have similar franchise business models with complementary daypart mixes and product platforms. The brands are managed independently by the company. As of December 31, 2018, approximately 100% of total restaurants for each of the brands were franchised.
The business generates revenue mainly from the following sources: (i) franchise revenues, consisting primarily of royalties; (ii) property revenues from properties they lease or sublease; and (iii) sales at Company restaurants.
Has 3 Operating Segments-Tim Hortons® Brand
: Founded in 1964, Tim Hortons (“TH”) is one of the largest donut/coffee/tea restaurant chains in North America and the largest in Canada, as measured by total number of restaurants. As of December 31, 2018, the company owned or franchised a total of 4,846 TH restaurants. Burger King® Brand
: Founded in 1954, Burger King (“BK”) is the world’s second largest fast food hamburger restaurant (“FFHR”) chain as measured by total number of restaurants. As of December 31, 2018, the company owned or franchised a total of 17,796 BK restaurants in more than 100 countries and U.S. territories. Popeyes® Brand
: Founded in 1972, Popeyes (“PLK”) is the world’s second largest quick service chicken concept as measured by total number of restaurants. As of December 31, 2018, the company owned or franchised a total of 3,102 PLK restaurants. PLK restaurants are quick service restaurants that distinguish themselves with a unique “Louisiana” style menu.
What Are The Alternatives?
Major competitors are companies like McDonald's, KFC, Subway, Chipotle, and other food chains.
What Is The Basis of Competition?
Each of brand competes on the basis of product choice, quality, affordability, service and location. As the restaurant industry has few barriers to new entrants, the competitors include a variety of independent local operators, in addition to restaurant chains and franchises, and new competitors may emerge at any time.
DISAGREE WITH OUR FORECASTS? CREATE YOUR OWN
1. How to save your forecasts:
Click on the blue "Try Trefis" button in the header to create an account, then navigate back to this dashboard. Now, any changes you make to these inputs will be auto-saved as a scenario (see left panel of dashboard).
2. How to monitor your scenario vs. actual results
Once you've saved your forecast, you can "rename" your scenario by clicking on the gear icon next to the scenario (on the left panel). For more info, see this quick, 30-sec video (look at the 9 sec mark)
With your forecast saved and named, you can see how well you forecast the company's performance at the end of each period and compare your forecasts to hundreds of other Trefis users who came up with their own forecasts. Lastly, you can share with friends and colleagues to show them how you fared and compare your forecasts to theirs