Q4 2021 Restaurant Brands International Inc Earnings Call

Speaker 1: Good morning and welcome to the Restaurant Brands International Fourth Quarter 2021 earnings conference call. All participants will be on listen only mode.

Good morning, and welcome to the restaurant brands International fourth quarter 2021 earnings conference call. All participants will be on listen only made should you need assistance. Please signal a conference specialist by pressing the star So they buy via right. After today's presentation there'll be the opportunity to ask questions.

Speaker 1: Should you need assistance, please signal a conference specialist by pressing the star followed by zero.

Speaker 1: After today's presentation there will be the opportunity to ask questions. To ask a question you may press star then one on your telephone keypad. You will hear a tone to confirm that you are in the key.

To ask a question you May press Star then one on your telephone keypad, you will hear it changed you can find that youre any key to exit. The question queue. You May Press Star then Chi Wen callers will be limited to one question. Please note. This event is being recorded I would now like to turn the call over to Steven Nina Rbi's head of Investor Relations. Please go ahead.

Speaker 1: To exit the question key, you may press star then two. All callers will be limited to one question. Please note this event is being...

Speaker 1: I would now like to turn the call over to Stephen Nichner, RBI's Head of Investor Relations. Please go ahead.

Ed.

Speaker 2: Thank you, operator. Good morning, everyone, and welcome to Restaurant Brands International's earnings call for the fourth quarter and year-ended December 31st, 2021. As a reminder, a live broadcast of this call may be accessed through the Investor Relations webpage at investor.rbi.com and a recording will be available for replay.

Thank you operator, good morning, everyone and welcome to restaurant brands Internationals earnings call for the fourth quarter and year ended December 31st 2021, as a reminder, a live broadcast of this call may be accessed through the Investor Relations webpage at Investor Dot RBI dotcom.

And a recording will be available for replay.

Speaker 2: Today's earnings call contains forward-looking statements, which are subject to various risks set forth in the press release issued this morning and in our SEC filing.

Today's earnings call contains forward looking statements, which are subject to various risks set forth in the press release issued this morning and in our SEC filings. In addition, this earnings call includes non-GAAP financial measures.

Speaker 2: In addition, this earnings call includes non-GAAP financial measures.

Reconciliations of non-GAAP financial measures are included in the press release available on our website.

Speaker 2: Reconciliations of non-GAAP financial measures are included in the press release available on our website.

Speaker 2: During portions of the call today, we will be referencing two-year comparisons for system-wide sales growth and comparable sales to provide a cleaner indication of how the business is trending versus a more normalized period.

During portions of the call today, we will be referencing two year comparisons for system wide sales growth and comparable sales to provide a cleaner indication of how the business is trending versus a more normalized period.

Speaker 2: These two-year comparisons are calculated on a geometric, stacked basis by using the 2020 and 2021 Disclosed Growth Metrics.

These two year comparisons are calculated on a geometric stacked basis by using the 'twenty to 'twenty and 2021 disclosed growth metrics in.

Speaker 2: In addition, consolidated system-wide sales, digital sales, net restaurant growth, and organic adjusted EBITDA growth do not include the results of firehouse subs, which we acquired on December 15, 2021. And now, I'll turn the call over.

In addition, consolidated system wide sales digital sales net restaurant growth in organic adjusted EBITDA growth do not include the results of firehouse subs, which we acquired on December 15th 2021, and now I'll turn the call over to Jose.

Good morning, everyone I hope, you're all doing well.

Speaker 3: Good morning, everyone. I hope you're all doing well. Joining me on the call this morning, as usual, are Josh Kabza, our COO, and Matt Dunnegan, our CFO .

Joining me on the call. This morning, as usual are Josh Kobza, our CLO and Matt Dunnigan, our CFO .

Speaker 3: I'm also excited to have Tom Curtis, the President of Burger King in the U.S. and Canada, as a special guest this quarter to share what he and his team have been up to since he took the helm in August .

I'm also excited to have Tom Curtis the president of Burger King in the U S and Canada as a special guest this quarter to share what he and his team had been up to since he took the helm in August .

We made significant progress over the course of 2021 on key near term initiatives, including opening over 1200, net new restaurants seeing early progress at Burger King U S and good momentum exiting the year at Tim Hortons in Canada.

Speaker 3: We made significant progress over the course of 2021 on key near-term initiatives, including opening over 1,200 net new restaurants, seeing early progress at Burger King U.S., and good momentum exiting the year at Tim Hortons in Canada.

As we look to 2022 we have a number of clear objectives for the year ahead and remain focused on first continuing to build sales momentum in our home markets and around the world, while driving franchisee profitability and unit economics.

Speaker 3: As we look to 2022, we have a number of clear objectives for the year ahead and remain focused on, first, continuing to build sales momentum in our home markets and around the world while driving franchisee profitability and unit economics.

Speaker 3: Second, accelerating global unit growth through our best-in-class franchise network.

Second accelerating global unit growth through our best in class franchise network.

Speaker 3: Third, leveraging recent investments in our field teams, training, and equipment to improve restaurant operations.

Third leveraging recent investments in our field teams training and equipment to improve restaurant operations.

Speaker 3: Fourth, utilizing technology initiatives, including our growing loyalty and e-commerce platforms, to enhance the guest experience.

Fourth utilizing technology initiatives, including our growing loyalty and e-commerce platforms to enhance the guest experience.

Speaker 3: And finally, making meaningful strides in our Restaurant Brands for Good plan, including executing against our climate strategy and furthering what sustainability means for our brands. I'm confident we're well positioned to execute on these priorities as we work towards our big dream of building the most loved restaurant brands in the world.

And finally, making meaningful strides in our restaurant brands for good plan, including executing against our climate strategy and furthering what sustainability means for our brands I'm confident we're well positioned to execute on these priorities as we work towards a big Dream of building the most loved restaurant brands in the world.

Speaker 3: I want to thank our restaurant team members, franchisees, and employees for their continued dedication. Our people are the lifeblood of our business, and for that reason, I was incredibly proud to see us earn the Great Place to Work certification with our strongest scores ever, reflecting our commitment to our team and culture. Turning to a few highlights.

I want to thank our restaurant team members franchisees and employees for their continued dedication our people are the lifeblood of our business and for that reason I was incredibly proud to see us earn the great place to work certification with our strongest scores ever reflecting our commitment to our team and culture.

Turning to a few highlights from the quarter and the year.

Speaker 3: During the fourth quarter, year-over-year comparable sales accelerated sequentially from the third quarter, driven by all of our brands and across the world.

During the fourth quarter year over year comparable sales accelerated sequentially from the third quarter, driven by all of our brands and across the world.

Speaker 3: This includes Tim Horton's Canada, which saw year-over-year comparable sales improve to 11.3% positive from 9.5% positive in Q3, and Burger King's International Business, which grew comparable sales positive 19.4%, a 320 basis point sequential acceleration.

This includes Tim Hortons, Canada, which saw year over year comparable sales improved to 11, 3% positive from 9.5% positive in Q3, and Burger King's International business, which grew comparable sales.

Positive 19, 4%, a 320 basis points sequential acceleration.

Speaker 3: In addition, Burger King U.S. started to narrow the gap to industry performance and saw comparable fails improve to plus 1.8% from a decline of 1.6% in Q3.

In addition, Burger King U S started to narrow the gap to industry performance in soft comparable sales improved to plus one 8% from a decline of one 6% in Q3.

On the development front, we opened nearly 600 net restaurants in the fourth quarter returning to over 1200 net new restaurants for the full year.

Speaker 3: On the development front, we opened nearly 600 net restaurants in the fourth quarter, returning to over 1,200 net new restaurants for the full year.

Speaker 3: And what excites us even more is the excellent work our teams delivered in 2021, entering into new, high-quality master franchise development agreements for Burger King, Tim Hortons, and Popeyes, and building pipelines that position us well to accelerate unit growth in 2022 and beyond across all brands.

And what excites us even more is the excellent work our teams delivered in 2020 , one entering into new high quality Master franchise development agreements for Burger King, Tim Hortons and Popeye's in building pipelines that position us well to accelerate unit growth in 2022 and beyond across all brands.

The combination of comparable sales and unit growth helped drive year over year system wide sales growth of 14% with organic adjusted EBITDA growth of 15%.

Speaker 3: The combination of comparable sales and unit growth helps drive year-over-year system-wide sales growth of 14%, with organic adjusted EBITDA growth of 15%.

Speaker 3: This contributed to strong free cash flow generation that enabled us to capitalize on an exciting strategic opportunity with the acquisition of FirehouseFab.

This contributed to strong free cash flow generation that enabled us to capitalize on an exciting strategic opportunity with the acquisition of firehouse subs.

Speaker 3: As the year came to a close, and as we look forward to 2022 and beyond, I could not be more excited to have welcomed the Firehouse Subs brand and its seasoned team to our family of iconic and loved restaurant brands.

As the year came to a close and as we look forward to 2022 and beyond I could not be more excited to have welcomed the firehouse subs brand and its seasoned team to our family of iconic and loved restaurant brands.

We also returned over $610 million to shareholders during the quarter and over $1.5 billion for the year through a combination of dividends and open market share repurchases.

Speaker 3: We also returned over $610 million to shareholders during the quarter and over $1.5 billion for the year through a combination of dividends and open market share repurchase.

Speaker 3: Our capital allocation this year was consistent with our overall philosophy that allows us to dynamically allocate capital between reinvesting in our business, returning capital to shareholders, executing on strategic M&A, or all three.

Our capital allocation. This year was consistent with our overall philosophy that allows us to dynamically allocate capital between reinvesting in our business returning capital to shareholders executing on strategic M&A or all three.

In addition, our continued commitment to our restaurant brands for good framework helped drive a notable improvement in our ratings. This year from leading ESG rating agencies. For example, we improved our S&P score by 37 points year over year and achieved a strong inaugural score of B minus on our first public CDP disclosure, which was an.

Speaker 3: In addition, our continued commitment to our restaurant brands for good framework helped drive a notable improvement in our ratings this year from leading ESG rating agencies. For example, we improved our S&P score by 37 points year over year and achieved the strong inaugural score of B- on our first public CDP disclosure, which was anchored by our strong governance and ambitious climate targets.

Agreed by a strong governance and ambitious climate targets.

Speaker 3: Before we dive into brand results, I want to address a few industry headlines relating to staffing and inflation that I'm sure are top of mind for everyone listening in.

Before we dive into brand results I want to address a few industry headlines relating to staffing and inflation that I'm sure are top of mind for everyone listening in.

Our brands have not been immune to these challenges and we're hyper focused on alleviating near term pressures by driving sales and traffic in conjunction with recommending staffing initiatives and pricing strategies.

Speaker 3: Our brands have not been immune to these challenges, and we're hyper-focused on alleviating near-term pressures by driving sales and traffic in conjunction with recommending staffing initiatives and pricing strategies.

Speaker 3: On labor, we're taking a proactive approach to improve the situation, including providing toolkits for hiring and retention, expanding the support from our field and training teams, and working on simplifying back-of-house processes to make it easier and more rewarding for our franchisees' restaurant staff to work in their restaurants.

On labor, we're taking a proactive approach to improve the situation, including providing toolkits for hiring and retention expanding the support from our field and training teams and working on simplifying back of house processes to make it easier and more rewarding for our franchisees restaurant staff to work in our restaurants.

Speaker 3: On pricing, we took price in 2021 at each of our brands and given the level of commodity cost and labor inflation we're seeing, we expect additional price increases in 2022 and are working closely with franchisees to make the best decision for guests and our franchisees' P&Ls. Turning now to our brand

On pricing, we took price in 2020 , one that each of our brands and given the level of commodity costs and labor inflation. We're seeing we expect additional price increases in 2022 and are working closely with franchisees to make the best decision for guests and our franchisees p&l's.

Turning now to our brand performance, let's start with Tim Hortons, Canada.

We are two years into our back to basics plan and continue to see encouraging proof points that our focus on elevating core quality innovating for growth and modernizing the brand is positioning tims well for long term growth in Canada.

Speaker 3: We are two years into our Back to Basics plan and continue to see encouraging proof points that our focus on elevating core quality, innovating for growth, and modernizing the brand is positioning Tim's well for long-term growth in Canada.

For the fourth quarter as I mentioned, we saw an 11, 3% year over year increase in comparable sales of 180 basis point acceleration relative to the third quarter.

Speaker 3: For the fourth quarter, as I mentioned, we saw an 11.3% year-over-year increase in comparable sales, a 180 basis point acceleration relative to the third quarter.

Speaker 3: As compared to 2019 levels, we saw a 2% decrease in comparable fails, which is a 360 basis point improvement versus Q3.

As compared to 2019 levels, we saw a 2% decrease in comparable sales, which is a 360 basis point improvement versus Q3.

Speaker 3: These results were driven by broad-based momentum, including in the underlying core business, the impact of our digital initiatives, and well-executed promotion.

These results were driven by broad based momentum, including in the underlying core business the impact of our digital initiatives and well executed promotions.

Speaker 3: During the quarter, we continued our journey of core quality enhancements in both breakfast and coffee.

During the quarter, we continued our journey of core quality enhancements in both breakfast and coffee.

Speaker 3: In breakfast, we built on our fresh cracked eggs platform with the introduction of the steak and egg breakfast sandwich, which helped drive overall morning day part sales ahead of 2019 levels for the first time since the start of the pandemic.

And breakfast, we built on our fresh cracked eggs platform with the introduction of the steak and egg breakfast Sandwich, which helped drive overall morning day part sales ahead of 2019 levels for the first time since the start of the pandemic.

We also made progress enhancing our hot beverage offerings.

Speaker 3: We also made progress enhancing our hot beverage offerings, extending our prior work on brewed coffee into a successful platform relaunch of handcrafted espresso beverages, including lattes, in November .

Standing our prior work on brewed coffee into a successful platform relaunch of handcrafted espresso beverages, including lots as in November .

Speaker 3: We saw the benefits of our richer and bolder recipes, dairy alternatives, and equipment tune-ups, with these great-tasting espresso-based beverages contributing to positive sales growth and helping drive a sequential improvement in hot beverage sales.

We saw the benefits of a richer and bolder recipes dairy alternatives and equipment Tune-ups with these great tasting espresso based beverages contributing to positive sales growth and helping drive a sequential improvement in hot beverage sales.

Speaker 3: In October , we took the next step in innovating for growth around our food-led occasions with freshly grilled wraps.

In October we took the next step and innovating for growth around our food led occasions with freshly grilled wraps.

Speaker 3: This successful launch built off our established credibility and cravables and helped drive mid-single-digit growth in our lunch and afternoon snack day parts versus 2019 levels.

This successful launch built off our established credibility and craveable and helped drive mid single digit growth in our lunch and afternoon snack day parts versus 2019 levels.

Speaker 3: It's encouraging to see our focus on enhancing food quality and taste translated to strong sales growth with breakfast foods and main foods up a combined 14% versus 2019.

It's encouraging to see our focus on enhancing food quality and taste translate into strong sales growth with breakfast foods and main foods up a combined 14% versus 2019.

Building, new honorable platforms across food led day parts remains an ongoing focus for the team and you can expect to hear more from us on our initiatives throughout the year.

Speaker 3: Building new, ownable platforms across food-led day parts remains an ongoing focus for the team, and you can expect to hear more from us on our initiatives throughout the year.

We're also making important strides modernizing the brand through restaurant technology enhancements and continued growth in our tims rewards loyalty program.

Speaker 3: We're also making important strides modernizing the brand through restaurant technology enhancements and continued growth in our Tim's Rewards loyalty program.

Speaker 3: For example, a roll-up to win 2.0 helped propel digital sales to over one-third of system-wide sales.

For example, a roll up to win 2.0 helped propel digital sales to over one third of system wide sales in.

Speaker 3: In addition, Tim's Rewards maintained its position as the number one food and beverage app in Canada, with 4.5 million monthly active users during the quarter, over 50% growth year over year.

In addition, tims rewards maintained its position as the number one food and beverage App in Canada with 4.5 million monthly active users during the quarter over 50% growth year over year.

Speaker 3: On top of these underlying improvements, we also drove special visits and sales during the quarter through impactful promotions such as our NHL trading cards and our collaboration with Justin Bieber.

On top of these underlying improvements we also drove special visits and sales during the quarter through impactful promotions, such as our NHL trading cards in our collaboration with Justin Bieber.

Tim beams, which included exclusive merchandise in three delicious 10 bids created together with Justin Bieber was one of the more successful traffic driving initiatives in recent memory and outperformed our internal expectations.

Speaker 3: Tim Beebs, which included exclusive merchandise and three delicious Tim Bits created together with Justin Bieber, was one of the more successful traffic driving initiatives in recent memory and outperformed our internal expectations.

Speaker 3: We've seen early signs of brand love benefits from this partnership through unprecedented social engagement and increased appeal with younger guests.

We've seen early signs of brand love benefits from this partnership through unprecedented social engagement and increase the appeal with younger guests.

Speaker 3: I'm a Belieber, and you can expect to see more from this exciting partnership in the year ahead.

I'm a believer in you can expect to see more from this exciting partnership in the year ahead.

Speaker 3: We were pleased to see the positive impact of our initiatives translate to growth in our brand health metrics as well, across nearly all metrics and ahead of competitors, with notable call-outs in both food and coffee quality and taste, and all brand connection attributes.

We were pleased to see the positive impact of our initiatives translate the growth in our brand health metrics as well across nearly all metrics and ahead of competitors with notable callouts in both food and coffee quality and taste and all brand connection attributes.

Speaker 3: I should point out that our efforts in the quarter, alongside the tremendous work of our owners, drove sequential improvements in comparable sales each month, culminating in the month of December with positive low single-digit comparable sales versus 2019.

I should point out that our efforts in the quarter alongside the tremendous work of our owners drove sequential improvement in comparable sales each month, culminating in the month of December with positive low single digit comparable sales versus 2019.

We also saw sequential improvements on a two year basis across all product categories. All day parts, all formats, all or vanities and all regions during the quarter.

Speaker 3: We also saw sequential improvements on a two-year basis across all product categories, all day parts, all formats, all urbanities, and all regions during the quarter.

While temporary restrictions and Lockdowns in January naturally had some impact on mobility and hence performance.

Speaker 3: While temporary restrictions and lockdowns in January naturally have some impact on mobility and hence performance.

Speaker 3: We were pleased to see that the impact of this latest surge and resulting restrictions has proven to be less severe than prior impacts, a reflection of the strength of our underlying business and brand connection, and the fact that Canadians, like people everywhere, are keen to safely return to their normal, mobile lives.

We were pleased to see that the impact of this latest surge and resulting restrictions has proven to be less severe than prior impacts a reflection of the strength of our underlying business and brand connection and the fact that Canadians like people everywhere are keen to safely return to their normal mobile lives.

In terms, we have a beloved brand dedicated restaurant owners and a strong multiyear plan in place to build on the momentum we're establishing in the attractive categories of food specialty beverage and cold beverage.

Speaker 3: In Tim's, we have a beloved brand, dedicated restaurant owners, and a strong multi-year plan in place to build on the momentum we're establishing in the attractive categories of food, specialty beverage, and cold beverage.

Speaker 3: And we're confident that thoughtful and steady category innovation combined with improved core execution and unmatched digital reach will unlock a better experience for our guests and more opportunities to grow sales and owner profitability across Canada.

And we're confident that thoughtful and steady category innovation combined with improved core execution and unmatched digital reach will unlock a better experience for our guests and more opportunities to grow sales and owner profitability across Canada.

What's more there's also a very attractive path to expand the tims brand around the world we.

Speaker 3: What's more, there's also a very attractive path to expand the Tims brand around the world. We already have an established presence in 13 countries and are actively adding to this footprint through our robust development pipeline.

We already have an established presence in 13 countries and are actively adding to this footprint through our robust development pipeline.

Speaker 3: The team achieved the highest level of unit growth since we acquired the brand, delivering 342 net new restaurants in 2021 with notable strength in China, where we exited the year with 390 stores and opened our 400th restaurant in January , less than three years after opening our first.

The team achieved the highest level of unit growth since we acquired the brand delivering 342 net new restaurants in 2021 with notable strength in China, where we exited the year with 390 stores and opened our 400 restaurant in January less than three years after opening our first.

In the U S. We achieved our best year of restaurant growth since 2016, and signed development agreements to expand in new markets, including Houston, which will open its first store this summer.

Speaker 3: In the US, we achieved our best year of restaurant growth since 2016 and signed development agreements to expand to new markets, including Houston, which will open its first store this summer.

Speaker 3: Our new U.S. openings leverage a smaller footprint, faster build times, and an optimized menu offering focused on beverages, baked goods, and hot breakfast sandwiches, all leading to more compelling unit economics.

Our new U S openings, leverages smaller footprint faster build times and an optimized menu offering focused on beverages baked goods and hot breakfast sandwiches, all leading to more compelling unit economics.

Speaker 3: We're seeing encouraging results from these formats and are excited to see the overall business get back to growth. We look forward to sharing additional progress of the TIMSS U.S. business later in the year.

We're seeing encouraging results from these formats and are excited to see the overall business get back to growth.

We look forward to sharing additional progress of the Tims U S business later in the year.

Speaker 3: Now, before I walk you through the rest of our results, I'd like to pass it over to Tom to give you an update on the encouraging progress we're seeing at Burger King U.S. Thank you, Jose.

Now before I walk you through the rest of our results I'd like to pass it over to Tom to give you an update on the encouraging progress we're seeing at Burger King U S.

Thank you Jose and thank you all for having me here today.

Speaker 3: Over the past six months, I've had the pleasure of traveling throughout the U.S., meeting with and learning from our dedicated franchisees, and doing important foundational work with our BK team and franchisees to build a multi-year plan to reclaim the flame at Burger King.

Over the past six months I've had the pleasure of traveling throughout the U S meeting with and learning from our dedicated franchisees and doing important foundational work with our BK team and franchisees to build a multi year plan to reclaim the flame at Burger King.

Speaker 3: While we intend to share additional details of this plan later this year, I'd like to take this opportunity to walk you through some of the near-term initiatives we recently shared with our franchisees.

While we intend to share additional details of this play and later this year I'd like to take this opportunity to walk you through some of the near term initiatives, we recently shared with their franchisees.

Speaker 3: I've been an operator for most of my career, including two decades as a franchisee, so I'm going to start with our initiative to improve operations, which is an important unlock for driving comparable sales.

I've been an operator for most of my career, including two decades as a franchisee so I'm going to start with our initiative to improve operations, which is an important unlock for driving comparable sales.

Speaker 3: The opportunity is evident when we look at performance across our top operators compared to our bottom operators as measured across a number of metrics including hours of operations, staffing, speed of service, and average complaint ratio.

The opportunity is evident when we look at performance across our top operators compared to a bottom operators as measured across a number of metrics, including hours of operations staffing speed of service and average complaint ratios.

In 2021 for example.

Speaker 3: In 2021, for example, comparable sales from this top quartile operators outperformed bottom quartile operators by over 400 basis points.

Comparable sales from this top quartile operators outperformed bottom quartile operators by over 400 basis points.

And this is why we're focused on working with our franchisees to implement initiatives that will improve operations.

Speaker 3: And this is why we're focused on working with our franchisees to implement initiatives that will improve operations.

At the end of December we rolled out our first of two waves of menu simplification, removing low volume items. So the team members can focus on serving our most loved products and providing guests the fantastic Burger King experience consistently.

Speaker 3: At the end of December , we rolled out our first of two waves of menu simplification.

Speaker 3: removing low-volume items so that team members can focus on serving our most loved products and providing guests a fantastic Burger King experience.

Speaker 3: The first wave had no material impact on comparable sales and we are confident that the improved execution we're starting to see will drive guest retention and frequency for our restaurant.

The first wave had no material impact on comparable sales and we are confident that the improved execution, we're starting to see will drive guest retention and frequency for our restaurants.

In addition, we're streamlining some product builds across the menu and simplifying our menu boards to make production and ordering easier for team members and for guests.

Speaker 3: In addition, we're streamlining some product builds across the menu and simplifying our menu boards to make production and ordering easier for team members and for guests.

Speaker 3: These measures and the renewed focus on operations are welcomed by our franchisees and starting to drive progress in several key operational metrics including order accuracy and overall satisfaction.

These measures and a renewed focus on operations are welcomed by our franchisees and starting to drive progress in several key operational metrics, including order accuracy and overall satisfaction.

Next on digital.

Speaker 3: I spent many years at another company that has been an industry leader in the digital guest experience.

I spent many years at another company that has been an industry leader in the digital guest experience.

Speaker 3: There is no doubt from everything that I've seen at Burger King that we have a lot of opportunities to make it easier for our guests to order from us online, with way fewer clicks to complete an order, and by implementing a consistent, easy-to-enjoy pickup experience.

There is no doubt from everything that I've seen at Burger King that we have a lot of opportunities to make it easier for our guests to order from us online with way fewer clicks to complete an order.

And by implementing a consistent easy to enjoy pickup experience.

The coming a leader in this digital space also involves completing the rollout and effective utilization of our outdoor digital menu boards.

Speaker 3: Becoming a leader in this digital space also involves completing the rollout and effective utilization of our outdoor digital menu boards, where over 70% of our guests are in the community.

We're over 70% of our guests order with us today.

Speaker 3: We are well on our way to equipping 100% of our drive-thrus in the U.S. and Canada with these boards by mid-2022.

We are well on our way to equipping a 100% of our drive throughs in the U S and Canada with these boards by mid 2022 .

Speaker 3: And as we continue to expand our Royal Perks Loyalty Program, we expect to see synergies from integrating loyalty into these dynamic digital boards.

And as we continue to expand our Royal Perks loyalty program, we expect to see synergies from integrating loyalty into these dynamic digital boards.

Shifting to our menu.

Speaker 3: We are leaning into our iconic brand equities and assets, starting with the more purposeful highlight on what has made us special over the decades, flame grilling and.

We are leaning into our iconic brand equities and assets starting with a more purposeful highlight on what has made a special over the decades flame grilling and having it your way.

Speaker 3: We were the first in the industry to do both at scale, and they're very much core to our future growth.

We were the first in the industry to do both at scale and they're very much core to our future growth.

Speaker 3: and also core to our growth, is leaning into our strongest brand equity, the WAPT.

It also core to our growth is leaning into our strongest brand equity the whopper.

The Whopper is a multibillion dollar brand and we need to treat it as such.

Speaker 3: The Whopper is a multi-billion dollar brand and we need to treat it as such.

Speaker 3: You should expect to see new extensions and innovations around the Whopper, some of which are already proven winners in our international market.

You should expect to see new extensions and innovations around the whopper.

Some of which are already proven winners in our international markets.

We expect they will test and perform well here in the U S as well.

Speaker 3: We expect they will test and perform well here in the U.S. as well.

And while we will always strive to provide excellent value for money on a full menu basis going forward, we will be purposeful and targeted when we choose to promote this iconic asset.

Speaker 3: And while we will always strive to provide excellent value for money on a full-menu basis, going forward, we will be purposeful and targeted when we choose to promote this iconic asset.

Speaker 3: On Chicken, you can expect us to optimize our platform so that we ensure unique offerings that we can execute on consistently.

On chicken you can expect us to optimize our platform. So that we ensure unique offerings that we can execute on consistently.

Speaker 3: This includes a thoughtful menu architecture that features our premium chicken sandwich and extensions, celebrates our original chicken sandwich, and offers a fun new approach to our unique fan favorite, chicken fries.

This includes a thoughtful menu architecture that features our premium chicken sandwich and extensions.

Hello Greats, our original chicken sandwich and offers a fun new approach to our unique fan favorite chicken fries.

Value also remains important to our guests and core to our business.

Speaker 3: Value also remains important to our guests and core to our business.

Speaker 3: One of our key priorities is to establish a strong value menu that will drive incremental traffic.

One of our key priorities is to establish a strong value menu that will drive incremental traffic.

Speaker 3: specifically by creating a powerful, have-it-your-way value menu and addressing its rightful place in our overall menu architecture.

Specifically by creating a powerful have it your way value menu and addressing its rightful place in our overall menu architecture.

Speaker 3: Now to execute on our initiatives, we've been building strong capabilities with our new analytics and insights team, bringing additional rigor to all areas of the business.

Now to execute on our initiatives, we've been building strong capabilities with our new analytics and insights team, bringing additional rigor to all areas of the business utilizing guest insights operations analytics performance analytics and digital analytics.

Speaker 3: Utilizing guest insights, operations analytics, performance analytics, and digital analytics.

Speaker 3: We are implementing better testing protocols to ensure our advertising and our initiatives are well chosen and more impactful.

We are implementing better testing protocols to ensure our advertising and our initiatives are well chosen and more impactful.

And given the increased rigor of our new processes, It's fair to expect more of an impact from our initiatives in the back half of 2022 .

Speaker 3: Given the increased rigor of our new processes, it's fair to expect more of an impact from our initiatives in the back half of 2022.

Branding and advertising the team is working on our brand positioning and how we build relevance with all audiences.

Speaker 3: The team is working on our brand positioning and how we build relevance with all audiences.

Speaker 3: I won't go into the detail on that today, but I would note that we recently announced our decision to put our creative and media accounts into review.

I won't go into the detail on that today, but I would note that we recently announced our decision to put our creative and media accounts into review.

Another crucial part of our brand positioning and relevance as reflected in our system image, where currently we have nearly 30% of our system equipped with the latest BK of tomorrow image and technology element.

Speaker 3: Another crucial part of our brand positioning and relevance is reflected in our system's image, where currently we have nearly 30% of our system equipped with the latest BK of Tomorrow image and technology element.

Speaker 3: The path toward a fully modernized fleet of restaurants is a key part of our longer-term plan, and we're committed to doing what we need to, including making investments in both the brand and its physical assets, to get there.

The path toward a fully modernized fleet of restaurants is a key part of our longer term player.

And we're committed to doing what we need to including making investments in both the brand and its physical assets to get there.

Speaker 3: We are working side-by-side with our franchisees to develop a bold and thoughtful investment plan which we'll share with you later this year.

We are working side by side with our franchisees to develop a bold and thoughtful investment plan, which we'll share with you later this year.

We are also investing in the support of our franchisees in restaurants.

Speaker 3: We are also investing in the support of our franchisees and restaurants.

Speaker 3: so that operators execute well on our proven business model, especially in this challenging.

So that operators execute well on our proven business model.

Especially in this challenging operating environment.

First.

Speaker 3: We increased our corporate field and training positions across the U.S. and Canada by over 50% since the start of 2021.

We increased our corporate field and training positions across the U S and Canada by over 50% since the start of 2021.

Speaker 3: Second, we're developing our Burger King employee value proposition, and also we'll start providing franchisees with market insights on competitive wages and benefits to help them attract and retain great talent.

Second we're developing our Burger King employee value proposition and also we'll start providing franchisees with market insights on competitive wages and benefits to help them attract and retain great talent.

Speaker 3: And third, we plan to pilot new training methods for restaurant team members like in-the-moment QR codes that can help them learn and grow as well as complete their everyday tasks more efficiently.

And third we plan to pilot new training methods for restaurant team members like in the moment QR codes that can help them learn and grow as well as complete their everyday tasks more efficiently.

Speaker 3: And finally, it will come as little surprise that inflationary pressures...

And finally, it will come as little surprise that inflationary pressures.

Speaker 3: coupled with near-term sales headwinds have had an impact on franchisee profitability.

Coupled with near term sales headwinds have had an impact on franchisee profitability.

Speaker 3: We've developed and tested a list of opportunities, many of which came directly from our top operators, which we expect will make a meaningful difference going forward.

We've developed and tested a list of opportunities many of which came directly from our top operators, which we expect will make a meaningful difference going forward.

We already started to selectively implement some of these profitability initiatives in 2021.

Speaker 3: We already started to selectively implement some of these profitability initiatives in 2021.

And plan to execute on more over the course of this year with a clear path to improved profitability in the coming quarters.

Speaker 3: and plan to execute on more over the course of this year with a clear path to improved profitability in the coming quarters.

And now to touch on our results for the fourth quarter.

Speaker 3: We saw a 1.8% year-over-year increase in comparable sales, a 340 basis point acceleration from Q3.

We saw 1.8% year over year increase in comparable sales of 340 basis point acceleration from Q3.

Speaker 3: This was driven primarily by the impact of simple, more powerful messaging around our key core platform initiatives for the quarter, as well as increases in both delivery and digital sales.

This was driven primarily by the impact of simple more powerful messaging around our key core platform initiatives for the quarter as well as increases in both delivery and digital sales.

Speaker 3: These improvements offset a modest impact from reduced operating hours, continued headwinds from our measured transition away from paper coupons, and lapping last year's $2 for $5 core discount promotion.

These improvements offset a modest impact from reduced operating hours continued headwinds from our measured transition away from paper coupons and lapping last year's two for $5 core discount promotion.

I was especially pleased to see our Italian original chicken sandwich, and ghost Pepper Nugget promos benefit from our improved media testing and our purposeful decision to reduce the number of messages in the quarter.

Speaker 3: I was especially pleased to see our Italian Original Chicken Sandwich and Ghost Pepper Nugget promos benefit from our improved media testing and our purposeful decision to reduce the number of messages in the quarter.

Speaker 3: These were direct outcomes of opportunities our team identified early on to enhance our media firepower.

These were direct outcomes of opportunities our team identified early on to enhance our media firepower.

I'm also excited to see that our efforts help to close the gap to our peers by a few hundred basis points last quarter.

Speaker 3: I'm also excited to see that our efforts helped to close the gap to our peers by a few hundred basis points last quarter.

Speaker 3: While we have a long way to go to further shrink this gap and to start creating one, both our corporate team and our franchisees are energized and excited to get after it.

While we have a long way to go to further shrink this gap and to start creating one both our corporate team and our franchisees are energized and excited to get after it.

Speaker 3: Finally, I want to thank them for their dedication and support as we work toward our common goal to reclaim the flame and provide exceptional experiences for each and every guest. And with that, I'll have.

Finally, I want to thank them for their dedication and support as we work toward our common goal to reclaim the flame and provide exceptional experiences for each and every guest.

And with that I'll hand, it back to Jose.

Thank you Tom it's clear the team's hard work is paying off and I'm personally equally as energized as U and our franchisees about Burger King's opportunity in the U S.

Speaker 4: Thank you, Tom. It's clear the team's hard work is paying off, and I'm personally equally as energized as you and our franchisees about Burger King's opportunity in the U.S.

Speaker 4: Let's turn now to our Burger King International business, which comprise nearly 60% of the brand's global system-wide sales in the quarter.

Let's turn now to our Burger King International business, which comprise nearly 60% of the brand's global system wide sales in the quarter.

Speaker 4: During the quarter, we once again achieved a sequential acceleration in system-wide sales growth versus 2019, growing over 12% up from last quarter's 10%.

During the quarter, we once again achieved a sequential acceleration in system wide sales growth versus 2019 growing over 12% up from last quarter's 10%.

Speaker 4: This result included sequential two-year comparable sales improvements in some of our largest international markets, with Spain and Brazil notably returning to pre-pandemic levels during the quarter, Canada up high single digits versus 2019, and Australia, Korea, and the UK generating double-digit growth.

This result included sequential two year comparable sales improvements and in some of our largest international markets with Spain, and Brazil, notably returning to pre pandemic levels during the quarter, Canada up high single digits versus 2019, and Australia Korea, and the U K generating double digit growth.

We also ended the year with our three largest international markets, France, Spain, and Germany, each generating over $1 billion in system wide sales.

Speaker 4: We also ended the year with our three largest international markets, France, Spain and Germany, each generating over $1 billion in system-wide sales.

Speaker 4: Outside of the benefits from easing restrictions, one of the largest contributors to business performance in our international business remains digital growth.

Outside of the benefits from easing restrictions one of the largest contributors to business performance in our international business remains digital growth.

Speaker 4: As Josh shared last quarter, we've seen a correlation between our most advanced digital markets and our largest and fastest growing markets.

As Josh shared last quarter, we've seen a correlation between our most advanced digital markets and our largest and fastest growing markets.

Speaker 4: In addition, our plant-based products continue to be an important sales driver in Europe , where we are a leader in plant-based offerings.

In addition, our plant based products continues to be an important sales driver in Europe , where we are a leader in plant based offerings.

Speaker 4: We continue to introduce new products, including the veggie version of our iconic long chicken, which made its debut in Spain and Germany during the quarter.

We continue to introduce new products, including the Veggie version of our iconic long chicken, which made its debut in Spain, and Germany during the quarter.

Speaker 4: We've been pleased with the results, including a doubling of plant-based product incidents in Europe in the quarter, and are looking for new market opportunities in Europe and around the world to expand the platform.

We've been pleased with the results, including a doubling of plant based product incidents in Europe in the quarter and are looking for new market opportunities in Europe and around the world to expand the platform.

We of course expect the international business to see continued improvements as restrictions ease.

Speaker 4: We, of course, expect the international business to see continued improvements as restrictions ease. And as we look forward into 2022, we also expect to accelerate our unit growth in Burger King's international markets off our 2021 levels. We're optimistic about the long-term appetite and opportunity to expand the Burger King brand in new and existing markets around the world.

And as we look forward into 2022, we also expect to accelerate our unit growth in Burger King's International markets off our 2021 levels, we're optimistic about the long term appetite and opportunity to expand the Burger King brand in new and existing markets around the world.

Turning to Popeye's as you know development remains a key priority and an unlock for the brand for long term growth.

Speaker 4: Turning to Popeyes, as you know, development remains a key priority and an unlock for the brand for long-term growth.

Speaker 4: 2021 was a milestone year for Popeye's development, crossing the 3,000 restaurant mark in the U.S. and Canada and experiencing record unit growth with the highest number of openings since we acquired the brand. And we have no plans to slow down.

2021 was a milestone year for Popeye's development crossing the 3000 restaurant Mark in the U S and Canada and experiencing record unit growth with the highest number of openings since we acquired the brand and we have no plans to slow down.

Speaker 4: In 2021, we signed more development agreements around the world than ever before, including plans to bring Popeye's iconic Louisiana-style chicken to India, the U.K., Saudi Arabia, Romania, and France, as well as further expansion in Mexico and, of course, the U.S. and Canada.

In 2020 , one we signed more development agreements around the world than ever before including plans to bring popeye's iconic Louisiana style chicken to India, The U K, Saudi Arabia, Romania, and France as well as further expansion in Mexico and of course, the U S and Canada.

Speaker 4: We've continued this momentum to 2022. In January , Popeyes announced an agreement to launch in South Korea, one of the largest chicken QSR markets in the world. I'm very proud of the team's dedication to introducing Popeyes to more guests, and I'm confident we'll once again see strong unit growth in 2022 in both the U.S. and around the world.

We continue this momentum into 2022 and January Popeye's announced an agreement to launch in South Korea, one of the largest chicken <unk> markets in the world I'm very proud of the team's dedication to introducing popeye's to more guests and I'm confident we'll once again see strong unit growth in 2022 in both the U S and around the world.

We saw the benefit of our powerful development engine on full display in our home market during the fourth quarter as strong net new restaurant growth of five 6% offset softer comparable sales and drove a 4% year over year increase in system wide sales.

Speaker 4: We saw the benefit of our powerful development engine on full display in our home market during the fourth quarter as strong net new restaurant growth of 5.6 percent offset softer comparable sales and drove a 4 percent year-over-year increase in system-wide sales.

Speaker 4: While Popeye's unit volumes remain incredibly strong, we did see a 1.8% year-over-year decline in home market comparable sales as a result of staffing challenges and competitive pressure.

While popeye's unit volumes remained incredibly strong we did see a 1.8% year over year decline in home market comparable sales as a result of staffing challenges and competitive pressures.

Speaker 4: Ongoing labor challenges led to reduced operating hours and service modes impacting comparable sales by roughly 1%. In addition, chicken sandwich volumes remained pressured by competitors which, as you may recall, started making their sandwich debuts in early 2021.

Ongoing labor challenges led to reduced operating hours and service modes impacting comparable sales by roughly 1%.

In addition, chicken sandwich volumes remained pressured by competitors, which as you may recall started making their sandwich debuts in early 2021.

Speaker 4: Despite these pressures, comparable sales did improve by nearly 300 basis points relative to Q3, partially driven by traction from many innovations.

Despite these pressures comparable sales did improve by nearly 300 basis points relative to Q3, partially driven by traction for menu innovation.

Speaker 4: For example, we saw encouraging results from recent initiatives with Nuggets and the Megan Thee Stallion Hottie Sauce collaboration contributing positively to comparable sales.

For example, we saw encouraging results from recent initiatives with Nuggets, and Megan the Sally and hot sauce collaboration contributing positively to comparable sales.

These initiatives also played an important role in attracting new demographics, specifically Gen Z and millennials and expanding our P. M Snacking day part.

Speaker 4: These initiatives also played an important role in attracting new demographics, specifically Gen Z and millennials, and expanding our PM snacking day party.

Speaker 4: We're just scratching the surface on opportunities for Popeyes, and I firmly believe that the brand is poised to become one of the fastest growing in the industry.

We're just scratching the surface on opportunities for popeye's and I firmly believe that the brand is poised to become one of the fastest growing in the industry.

Speaker 4: And finally, I'd like to briefly touch on our newest addition, Firehouse Sub.

And finally I'd like to briefly touch on our newest addition, firehouse subs.

Speaker 4: I'm pleased to share the strong results that the Firehouse Subs team drove in 2021, including reaching all-time high average unit volumes of over $900,000, growing year-over-year comparable sales 21 percent, driving system-wide sales to approximately $1.1 billion, and generating over 27 percent of system-wide sales through digital channels.

I'm pleased to share the strong results at the firehouse subs team drove in 2021 , including reaching all time high average unit volumes of over $900000 growing year over year comparable sales, 21% driving system wide sales for approximately $1 $1 billion and generating over 27% of system wide sales through digital channels.

These impressive results are a testament to the strength of the brand its unique menu offerings. Its purpose led public safety commitment and its seasoned management team.

Speaker 4: These impressive results are a testament to the strength of the brand, its unique menu offerings, its purpose-led public safety commitment, and its seasoned management team.

Speaker 4: It's all these elements that make us so confident in Firehouse Stub's long-term growth and expansion opportunities.

It's all of these elements that make us so confident and firehouse subs long term growth and expansion opportunity.

We're excited to plug firehouse subs into a robust global development network shifting the brand's unit growth into high gear in the coming years.

Speaker 4: We're excited to plug Firehouse Subs into our robust global development network, shifting the brand's unit growth into high gear in the coming year.

Speaker 4: And while Firehouse Subs already has a growing digital presence, we see further opportunities to add more guest options and benefits and transport the brand's digital experience across borders.

And while firehouse subs already has a growing digital presence, we see further opportunities to add more guest options and benefits and transport the brand's digital experience across borders.

Speaker 4: I'm very excited for the future of firehouse subs at RBI and look forward to providing you with more updates in the year ahead.

I'm very excited for the future of firehouse subs at RBI and look forward to providing you with more updates in the year ahead.

Speaker 4: With that, I'd like to hand it over to Josh to take you through a quick update on our technology and digital initiatives. Josh.

With that I'd like to hand, it over to Josh to take you through a quick update on our technology and digital initiatives Josh.

Thanks, Jose and good morning, everyone.

Speaker 5: Thanks, Jose, and good morning, everyone. Technology remains a key pillar of our long-term strategy and one we view as a powerful business driver across all our brands and markets.

Technology remains a key pillar of our long term strategy and one we view as a powerful business driver across all our brands in markets.

We're focused on creating an even more convenient and seamless experience for guests with the ultimate goal of driving sales.

Speaker 5: We're focused on creating an even more convenient and seamless experience for guests with the ultimate goal of driving sales.

Speaker 5: That means being available across all channels, making it easier and faster to order and creating a joyful experience each and every time anyone interacts with our brand.

That means being available across all channels, making it easier and faster to order and creating a joyful experience each and every time anyone interacts with our brands.

Speaker 5: To help us achieve this goal, we've added roughly 300 team members in the last 3 years across our consumer-facing, restaurant technology, and data analytics teams, putting ourselves in a position to move quickly and build critical capabilities ourselves.

To help us achieve this goal we've added roughly 300 team members in the last three years across our consumer facing restaurant technology and data analytics teams, putting ourselves in a position to move quickly and build critical capabilities ourselves.

In addition, we have accelerated adoption of key skills across our broader organization through hiring education and training programs.

Speaker 5: In addition, we have accelerated adoption of key skills across our broader organization through hiring, education, and training programs.

Speaker 5: One way we're integrating digital into our brands is through new service modes built into our restaurant image.

One way, we're integrating digital into our branches through new service moats built into our restaurant image.

For example at Tim Hortons, our design team has added new order and pickup channels into various restaurant types.

Speaker 5: For example, at Tim Hortons, our design team has added new order and pickup channels into various restaurant types.

Speaker 5: These include developing a walk-up order window, a dedicated curbside pickup area, and a drive-through conveyor system.

These include developing a walk up order window, a dedicated curbside pickup area and a drive thru conveyor system.

Speaker 5: We look forward to sharing more on each of these exciting design innovations that enable digital experience as we roll them out to more restaurants in 2022.

We look forward to sharing more on each of these exciting design innovations that enable digital experience as we rolled them out to more restaurants in 2022.

And a quick update on our digital sales progress. We ended 2021 with over $10 billion in global digital sales, representing just over 30% of our total system wide sales tremendous progress from just over four years ago. When we had virtually no digital sales in most of our major markets.

Speaker 5: And a quick update on our digital sales progress. We ended 2021 with over $10 billion in global digital sales, representing just over 30% of our total system-wide sales. Tremendous progress from just over four years ago when we had virtually no digital sales in most of our major markets.

Speaker 5: During the fourth quarter, Tim's Canada derived over a third of its sales from digital channels, an all-time high for the brand. And Popeyes and Burger King home markets generated 16% and 9% respectively, while our international markets drove over 50% of sales through digital channels.

During the fourth quarter Tims, Canada derived over a third of its sales from digital channels and all time high for the brand.

And popeye's in Burger King home markets generated 16% and 9% respectively, while our international markets drove over 50% of sales through digital channels.

Speaker 5: We attribute this improvement to a combination of factors including growth in delivery, an increase in mobile order and pay, and continued traction from loyalty.

We attribute this improvement to a combination of factors, including growth in delivery and increase in mobile order and pay and continued traction from loyalty.

Speaker 5: 2021 marked the first year we had loyalty across all our brand's home markets.

2021 marked the first year, we had loyalty across all our brands' home markets.

Speaker 5: While Burger King and Popeyes are earlier on in their journeys, during the year Tim Hortons transitioned its loyalty program from one focused on building a strong user base to consistently driving comparable sales and as a result saw the highest sales contribution from loyalty to date.

Well Burger King and Popeye's are earlier on in their journeys during the year, Tim Hortons transitioned its loyalty program from one focused on building a strong user base to consistently driving comparable sales and as a result saw the highest sales contribution from loyalty to date.

Speaker 5: I'm confident the investments we are making across our digital and technology capabilities will play a critical role in enhancing the guest experience and advancing our growth in the future. With that, I'll hand it over to Matt to take you through

I'm confident the investments we are making across our digital and technology capabilities will play a critical role in enhancing the guest experience and advancing our growth in the future.

With that I'll hand, it over to Matt to take you through our financials for the quarter.

Thanks, Josh and good morning, everyone for the fourth quarter, our global system wide sales grew 14% to $9 $3 billion and our adjusted EBITDA was $584 million up about 15% organically.

Speaker 6: Thanks, Josh, and good morning, everyone. For the fourth quarter, our global system-wide sales grew 14% to $9.3 billion, and our adjusted EBITDA was $584 million, up about 15% organically.

Speaker 6: Beyond the growth in system-wide sales, there were some factors that contributed to slightly higher EBITDA growth versus system-wide sales growth this quarter.

Beyond the growth in system wide sales there were some factors that contributed to slightly higher EBITDA growth versus system wide sales growth this quarter. These.

Speaker 6: These include benefits related to a few things. First, a positive shift in sales mix at Tim Hortons Canada, where we have additional lines of business benefiting from our same store sales growth of over 11% year over year. Second, cash distributions related to joint ventures and other ownership positions, as we've seen the health of many of our markets around the world continue to improve.

These include benefits related to a few things first a positive shift in sales mix at Tim Hortons, Canada, where we have additional lines of business benefiting from our same store sales growth of over 11% year over year second cash distributions related to joint ventures, and other ownership positions as we've seen the health of many of our markets around the world continue to.

Improve.

Speaker 6: Third, the release of bad debt provisions while lapping cautionary provisions that were set up in 2020. And lastly, the continued growth of our retail business at Tim Hortons, including new product launches and further expansion into U.S. channels.

Third the release of bad debt provisions, while lapping cautionary provisions that were set up in 2020.

And lastly, the continued growth of our retail business at Tim Hortons, including new product launches and further expansion into U S channels.

Speaker 6: These tailwinds were partially offset by anticipated increases in our G&A expenses, as well as year-over-year ad fund timing.

These tail winds were partially offset by anticipated increases in our G&A expenses as well as year over year AD fund timing.

Speaker 6: As discussed throughout 2021, we've ramped up G&A investments within core areas of the business such as expanding and improving our field operations, including the 50% increase in field headcount at Burger King U.S. and Canada that Tom mentioned, and meaningfully growing our technology capabilities.

As discussed throughout 2021, we've ramped up G&A investments within core areas of the business, such as expanding and improving our field operations, including the 50% increase in field head count at Burger King U S and Canada that Tom mentioned and meaningfully growing our technology capabilities.

Speaker 6: In the fourth quarter, we saw this flow through largely as expected with our segment G&A increasing to about $104 million excluding firehouse, reflecting these investments as well as a few million of additional discrete compensation expense driven by business performance exceeding expectations into year end.

In the fourth quarter, we saw this flow through largely as expected with our segment G&A increasing to about $104 million, excluding firehouse, reflecting these investments as well as a few million dollars of additional discrete compensation expense driven by business performance exceeding expectations into year end.

Speaker 6: As it relates to ad fund timing, our year-over-year growth this quarter reflects the fact that advertising expenses exceeded revenues by approximately $11 million more than they did in the fourth quarter of last year.

As it relates to AD fund timing our year over year growth. This quarter reflects the fact that advertising expenses exceeded revenues by approximately $11 million more than they did in the fourth quarter of last year.

Speaker 6: resulting in an organic epidot growth headwind of about 2%.

<unk> in an organic EBITDA growth headwind of about 2%.

Most of this movement relates to us deploying the remainder of our 80 million Canadian dollar commitment behind the Tim Hortons, Canada marketing plan to drive our back to basics initiatives.

Speaker 6: Most of this movement relates to us deploying the remainder of our $80 million Canadian dollar commitment behind the Tim Hortons Canada Marketing Plan to drive our Back to Basics initiatives.

In addition, as of January our restaurant owners AD fund contributions have stepped up by 50 basis points versus the beginning of last year, which we expect will provide valuable investment capacity for the future as we advance on our food innovation roadmap and build further and further on our digital momentum to modernize the experience of our guests across Canada.

Speaker 6: In addition, as of January , our restaurant owners' ad fund contributions have stepped up by 50 basis points versus the beginning of last year, which we expect will provide valuable investment capacity for the future as we advance on our food innovation roadmap and build further and further on our digital momentum to modernize the experience of our guests across Canada.

Before turning to EPS I would like to briefly discuss our sales cost of sales margin within our Tim Hortons segment.

Speaker 6: Before turning to EPS, I'd like to briefly discuss our cost of sales margin within our Tim Horton segment.

Similar to what others across the industry have noted we saw a significant increase in commodity volatility as we progressed through the quarter, leading to elevated levels of inflation that have similar pass through effects on both our revenue and expense lines.

Speaker 6: Similar to what others across the industry have noted, we saw a significant increase in commodity volatility as we progressed through the quarter, leading to elevated levels of inflation that have similar pass-through effects on both our revenue and expense lines.

This dynamic resulted in a somewhat lower margin percentage than anticipated in the quarter.

Speaker 6: This dynamic resulted in a somewhat lower margin percentage than anticipated in the quarter.

Speaker 6: That said, during the fourth quarter we saw healthy year-over-year growth related to sales less cost of sales on a dollar basis.

That said during the fourth quarter, we saw healthy year over year growth related to sales less cost of sales on a dollar basis.

Speaker 6: A good reflection of the trends we saw at Tim's as sales and volumes improved throughout the quarter.

Good reflection of the trends, we saw tens of sales and volumes improve throughout the quarter we.

Speaker 6: We will continue to manage through the volatility that has extended into this year and as we do so, remain focused on driving volume growth in a high-quality way through our sales plan and maintaining best-in-class service levels, which are a key advantage for our system.

We will continue to manage through the volatility that has extended into this year and as we do so remain focused on driving volume growth in a high quality way through our sales plan and maintaining best in class service levels, which are a key advantage for our system.

Speaker 6: Our fourth quarter adjusted earnings per share was $0.74, compared to $0.53 last year, representing an increase of approximately 39%, including an FX tailwind of about 1%.

Our fourth quarter adjusted earnings per share was <unk> 74 cents compared to <unk> 53 cents last year, representing an increase of approximately 39%, including an FX tailwind of about 1%.

The higher growth compared to our organic adjusted EBITDA growth of 15% was mainly driven by lower net interest expense, a lower adjusted effective tax rate and a reduced share count from our repurchase activity.

Speaker 6: The higher growth compared to our organic adjusted EBITDA growth of 15% was mainly driven by lower net interest expense, a lower adjusted effective tax rate, and a reduced share count from our repurchase activity, partially offset by higher equity-based compensation.

Partially offset by higher equity based compensation.

Speaker 6: Turning to our cash flow and capital structure, we generated $435 million in free cash flow during Q4 and over $1.6 billion for the year.

Turning to our cash flow and capital structure, we generated $435 million in free cash flow during Q4 and over 1.6 billion for the year.

Speaker 6: This strong cash flow enabled us to continue investing in our business and capitalize on an accretive strategic opportunity, all while following through on our commitment to return capital to shareholders through both our industry-leading dividend and open market share repurchases.

The strong cash flow enabled us to continue investing in our business and capitalize on an accretive strategic opportunity.

All while following through on our commitment to return capital to shareholders through both our industry, leading dividend and open market share repurchases.

Okay.

Speaker 6: In December , we increased our Term Loan A facility by over $500 million and extended the maturity of our Term Loan A and revolver to 2026.

In December we increased our term loan a facility by over $500 million and extended the maturity of our term loan a and revolver to 2026.

The proceeds along with cash on hand, supported our $1 billion acquisition of firehouse subs.

Speaker 6: The proceeds, along with cash on hand, supported our $1 billion acquisition of Firehouse Subs.

Speaker 6: The transaction had a minimal impact on our balance sheet, only increasing net leverage by about 0.3 times from Q3. And we ended the year with a strong liquidity position of $2 billion, including $1 billion of cash on hand.

Transaction had a minimal impact on our balance sheet only increasing that leverage by about 0.3 times from Q3, and we ended the year with a strong liquidity position of $2 billion, including $1 billion of cash on hand.

Our strong cash flow and flexible balance sheet has allowed us to execute across all elements of our capital allocation priorities, which starts first and foremost with investing in the business.

Speaker 6: Our strong cash flow and flexible balance sheet has allowed us to execute across all elements of our capital allocation priorities, which starts first and foremost with investing in the business.

On this front, we made a number of important investments throughout the year.

Speaker 6: On this front, we made a number of important investments throughout the year.

Speaker 6: including the G&A investments I discussed and our $80 million Canadian dollar support for the Tim Hortons Canada Ad Fund. In addition, we invested $125 million into our business through CapEx and tenant-induced

Including the G&A investments I discussed and our 80 million Canadian dollar support for the Tim Hortons, Canada AD fund in.

In addition, we invested $125 million into our business through Capex and tenant inducements, reflecting our commitment to modernizing our brands and innovating our digital capabilities.

Speaker 6: reflecting our commitment to modernizing our brands and innovating our digital capabilities.

Speaker 6: Going forward, we will continue to prioritize investing in our brands, and as Tom mentioned, are in the process of working through a thoughtful plan for the DKUS business, which we expect to share more on with you later this year. We've also been actively buying back shares, and during the fourth quarter repurchased and retired approximately 6.4 million shares of our common stock for nearly $370 million.

Going forward, we will continue to prioritize investing in our brands and as Tom mentioned are in the process of working through a thoughtful plan for the BK U S business, which we expect to share more on with you later this year we.

We've also been actively buying back shares and during the fourth quarter repurchased and retired approximately 6.4 million shares of our common stock for nearly $370 million.

Speaker 6: In addition, we paid shareholders a 53 cent per share quarterly dividend, which will increase in Q1, marking the 38th consecutive quarter of year-over-year dividend increase and a target of $2.16 per share for 2022.

In addition, we paid shareholders a 53 cents per share quarterly dividend, which will increase in Q1, marking the 38th consecutive quarter of year over year dividend increase and a target of $2.16 per share for 2022.

2021 marked a positive combination of improving business results with double digit growth in both system wide sales and adjusted EBITDA and $1.5 billion of shareholder returns through nearly $1 billion of dividends and over $500 million of open market share repurchases.

Speaker 6: 2021 marked a positive combination of improving business results with double-digit growth in both system-wide sales and adjusted EBITDA, and $1.5 billion of shareholder returns through nearly $1 billion of dividends and over $500 million of open market share repurchase.

Speaker 6: As we look forward to 2022, we see clear opportunities to continue down this path by building on our momentum at TIMSS, ramping up the initiatives Tom touched on in BKUS, and delivering on our big global development opportunities.

As we look forward to 2022, we see clear opportunities to continue down this path by building on our momentum at Tims ramping up the initiatives Tom touched on in BK U S and delivering on our big global development opportunities.

Speaker 6: In addition, with our ample liquidity, strong cash flows, and nearly half of our $1 billion open market authorization available, we have plenty of flexibility to remain dynamic with our capital allocation between reinvesting in our business and enhancing our growth with a similar amount of shareholder returns in 2022, absent other compelling strategic investment opportunities.

In addition, with our ample liquidity strong cash flows and nearly half of our $1 billion open market authorization available we have plenty of flexibility to remain dynamic with our capital allocation between reinvesting in our business and enhancing our growth with a similar amount of shareholder returns in 2022 apps another compelling strategic investment opportunities.

With that I'd like to thank everyone again for your support and for joining US. This morning, and we'll now open the line for questions operator.

Speaker 6: With that, I'd like to thank everyone again for your support and for joining us this morning. And we'll now open the line for questions. Operator?

Thank you mind just to ask a question you May Press Star then one on just kind of think he patch you'll hear it change confirmed that you and the key to exit. The question. You May Press Star, then Qi, who Coolidge will be limited to one question, we'll be taking our first question today from Brian .

Speaker 1: Thank you. A reminder to ask a question you may press star then one on the cell phone keypad. You will hear a tone to confirm that you're in the queue. To exit the question queue you may press star then two. All callers will be limited to one question.

Speaker 1: We'll be taking our first question today from Brian Millen of Deutsche Bank. Brian , please go ahead.

<unk> of Deutsche Bank, Brian . Please go ahead.

Yeah.

Speaker 7: Thank you, and thanks for joining the call. Tom, thanks for the prepared remarks. You talked about a lot of things, but I believe you mentioned potentially being willing to further invest in the brand, could be in physical real estate, which would presumably be more of a CapEx, but I'd imagine perhaps that could also mean ongoing GNA or OpEx in support of the system. So if you could just elaborate on that comment and what you had on mind. Is one thing needed more than the other? Are both equally important? Just any thoughts.

And.

During the call Tom Thanks for the prepared remarks, you talked about a lot of things, but I believe you mentioned potentially being willing to further invest in the brand to be in physical real estate, which would presumably be more capex, but I'd imagine perhaps that could also mean ongoing G&A or opex in support of the system. So if you could just elaborate on that comment and what you have in mind.

It's one thing need more than the other or both equally important just any thoughts would be great.

Yeah.

Speaker 4: Hey, Brian , thanks for the question. It's Jose. I'll just open it up here and then pass it over to Tom, who's sitting right next to me. As we said in the past, and we commented in our prepared remarks, we've got an incredible business generating a lot of free cash flow and it gives us the ability to invest back into the business, to return capital to shareholders, to do strategic M&A, or all three as we've done in this fourth quarter of 2021.

Hey, Brian Thanks for the question, it's Jose I'll just open it up here and then pass it over to Tom who is sitting right next to me.

As we've said in the past and we commented in our prepared remarks, we've got an incredible business generating a lot of free cash flow and it gives us the ability to invest.

We invest back into the business to return capital to shareholders to do strategic M&A or all three as we've done.

In this fight in this fourth quarter of 2021.

Speaker 4: As it relates to the Burger King business, we've touched on this quite a bit, and Tom just got into a position, and he's working with the team on the game plan going forward. I'll let him go into a bit on the GNA front as well as the work we're doing on real estate and the capital side. Tom, you want to touch on that?

As it relates to the Burger King business, we've talked touched on this quite a bit and Tom just got into a position and he is working with the team on the game plan going forward I'll, let him go into a bit on the on the G&A front as well as.

The work, we're doing on real estate and the capital side, Tom you want to touch on that.

Speaker 3: Yeah, and thanks for the question, Brian . It's important to remember that we're already investing a good bit of G&A behind the BKUS business, as we expanded the field team last year, increasing over 50% the size of the field team from January to January of this year.

Yes, and thanks for the question, Brian It's important to remember that we're already investing a good bit of G&A behind the BK U S business as we expanded the field team last year increasing.

Increasing over 50% the size of the field team.

From January to January of this year and those team members are critical partners with our franchisees. They are helping drive the operational improvements that we're seeing and that we need to continue to see and Theyre also helping the franchisees implement some of the new initiatives that we have going forward also we've invested in our analytics and <unk>.

Speaker 3: And those team members are critical partners with our franchisees. They're helping drive the operational improvements that we're seeing and that we need to continue to see. And they're also helping the franchisees implement some of the new initiatives that we have going forward. Also, we've invested in our analytics and insights team, led by a fantastic colleague of mine, Julia Oswald. And we're putting money behind technology and digital.

<unk> team led.

Led by a fantastic colleague of mine, Julia Oswald and we're putting money behind technology and digital.

Speaker 3: But image is perhaps the area where we can accelerate the most with capital. We exited 2021 with about 30% of our home market system remodeled to the BK of tomorrow. We've been going at a run rate of about 500 remodels per year, but we're looking at ways to make SEP changes while maintaining quality.

But image is perhaps the area, where we can accelerate the most with capital we exited 2021 with about 30% of our whole market system remodeled to the BK of tomorrow, we'd been going at a run rate of about 500 remodels per year, but we're looking at ways to make step change as well.

While maintaining quality and this year, we will be going site by site and working with our franchisees to execute on what that looks like so that they can drive good return on investment.

Speaker 3: And this year we'll be going site by site and working with our franchisees to execute on what that looks like so that they can drive good return on investment.

Speaker 3: and also create a more seamless end-to-end experience for guests and improve operations for the restaurants. So we certainly are anxious and eager to share more with you, and that will probably come later this year in the coming quarters.

And also create a more English our seamless end to end experience for guests and improve operations for the restaurants. So we certainly are anxious and eager to share more with you and that will probably come later this year in the coming quarters.

Great. Thanks for the question.

Speaker 1: Thank you, Brian . We'll take our next question from Chris Carroll of RBC Capital Markets. Chris, please go ahead.

Thank you Brian we'll take our next question from Chris Carroll of RBC capital market. Chris. Please go ahead.

Speaker 4: Thanks, and good morning. I wanted to circle back to development. You noted recently and again today that you see development accelerating, but I was hoping you can expand on that a bit more. I mean, Tim's clearly showed meaningful acceleration in the 4Q, and you've signed a number of new agreements for Popeyes, and now you've layered in Firehouse. So, curious on how all the pieces fit together for the overall development outlook for this year, and to what extent you see more balanced growth going forward longer term. Thanks.

Thanks, and good morning, I wanted to circle back to development, you've noted recently and again today that you see development accelerating but I was hoping you can expand on that a bit more I mean, tims clearly showed meaningful acceleration in the <unk>.

And you've signed a number of new agreements for popeye's and now you've layered in firehouse. So curious on how all the pieces fit together for the overall development outlook for this year and to what extent you see more balanced growth going forward longer term. Thanks.

Hey, Chris Thanks for the question Yeah, we were excited with the progress we made in 2021, we saw the power of our diversified growth this year with with Popeye's.

Speaker 4: Hey, Chris, thanks for the question. Yeah, we were excited with the progress we made in 2021. We saw the power of diversified growth this year with Popeyes.

Speaker 4: in the U.S. as well as internationally, beginning to really be a big contributor, as well as Tim Hortons gaining traction in international markets, especially in China, but also in other international markets like the Middle East and the U.K. and Mexico. And we saw the first time in a long time positive growth out of Tim's in the U.S. So we're excited about.

In the U S as well as internationally beginning to to really be a big contributor as well as its importance gaining traction.

In our international markets, especially in China.

But also in other international markets like the Middle East and the U K and Mexico, and we saw the first time.

Long time positive growth out of tims in the U S. So we're excited about.

Speaker 4: Popeyes and Tim's contributing. Obviously, BK is the engine of growth and has been for some time for our company internationally in particular. And we're confident in the ability of that business to get back to levels of growth, what we saw back in 17, 18, and 19. And we're encouraged by the broad-based growth that we saw internationally in many markets. We saw some markets.

Popeye's in Tim's contributing obviously BK.

As the engine of growth and has been for some time for our company internationally in particular.

We're confident in the ability of that business to get back to.

The levels of growth.

What we saw back in 17, 18 and 19.

And we're encouraged by the broad based growth that we saw internationally.

In many markets, we saw some markets, where we have large franchisees.

Speaker 4: where we have large franchisees getting back to growth in 2021 and seeing some good momentum there, but not quite to pre-pandemic levels.

Getting back to growth in 2021.

And and seeing some some good momentum there, but not quite to pre pandemic levels.

Speaker 4: Um, and, you know, examples of that include China.

And examples of that include China, Brazil, and Russia are growing but not quite at the pace that we saw in 2018 2019 I think in some cases, there are macro environmental issues like like we saw with Brazil, Although we did see signs of improvement in the fourth quarter.

Speaker 4: Brazil and Russia growing, but not quite at the pace that we saw in 2018-2019. I think some cases there are macro-environmental issues like we saw with Brazil, although we did see signs of improvement in the fourth quarter. In the case of China, as an example, we've been working through

In the case of China as an example, we've.

We've been working through some open issues and and disputes that we've had with our master franchisee. There we're working through them working closely with the master franchisee I'm not gonna be able to get into too much of that into this.

Speaker 4: some open issues and disputes that we've had with our master franchisee there. We're working through them, working closely with the master franchisee. I'm not going to be able to get into too much of that into this call here, but I've known these guys a long time and believe that we have a good path forward to help accelerate growth.

Call here, but I've known these guys a long time and believe we have a good path forward to help accelerate growth.

Speaker 4: in China, which is one of our biggest priorities, and overall, we're pleased with the huge bounce back we saw in 2021 from basically flat in 2020 to meaningful growth.

In China, which is one of our biggest priorities and overall, we're pleased with the huge bounce back we saw in 2021 from basically flat.

In 2022 to meaningful growth.

Speaker 4: in in 2021 and we have a lot of confidence in our long-term outlook. We continue to see a lot of

In 2021, and we have a lot of confidence in our long term outlook, we continue to see a lot of.

Speaker 4: of white space in many markets in Asia, we're still, our competition has 3 to 1 versus us and we think we have an opportunity to grow in the chicken space, in the coffee space, in the burger space, and now in the sandwich space.

White space and in many markets in Asia, we're still.

Our.

<unk> has a three to one versus that so we think we have an opportunity to grow and the chicken space in the coffee space in the Burger space and now in the Sandwich space.

Speaker 4: In EMEA, or Europe , Middle East, Africa, it's 2 to 1, and North America, it's also 2 to 1. So lots of room for growth. We have four great brands that have strong unit economics and lots of interest from franchisees, and in particular, as it relates to BK, we're confident that we can accelerate in 2022 and beyond, and get back to really strong growth across the entire company.

In EMEA or Europe Middle East Africa, It's two to one in North America. It's also two to one so lots of room for growth.

We have four great brands that have a strong.

Unit economics, and lots of interest from franchisees and in particular as it relates to BK, we're confident that we can accelerate.

In 2022 and beyond and get back to.

It's a really strong growth across the entire company.

Thanks for the question.

Speaker 1: Thank you, Chris. We'll take our next question from David Palmer of Evercore ISI. David, over to you.

Thank you Chris we'll take our next question from David Palmer of Evercore ISI, David AVG.

Thanks.

Speaker 8: Thanks, for my question I wanted to focus on the impact of inflation and supply chain in Canada. You mentioned how Tim's supply chain was a drag to the EBITDA this quarter, and I would imagine costs would be running high in supply chain in Canada this quarter, but looking to the future, I would imagine that the relationship of pricing to costs in the supply chain business

My question I wanted to focus on the impact of inflation and supply chain in Canada, you mentioned, how Tim supply chain was a drag to EBITDA this quarter and I would imagine our costs would be running high in supply chain in Canada This quarter.

But looking to the future I would imagine that the relationship with pricing to cost in the supply chain business.

Speaker 8: would be improving, and some of these COVID-related friction costs that we see across all sorts of supply chains out there would also be going away. So could you talk about how much COVID and perhaps the temporary dislocations of price to cost?

Would be improving our in some of these COVID-19 related friction costs that we see across all sorts of supply chains out there would also be going away. So could you talk about how much COVID-19 and perhaps the temporary dislocations of price to cost might be a drag to tims.

Speaker 8: might be a drag to Tim's EBITDA right now and how much that might be easier comparisons later? And then how much higher are Tim's Canada prices, you know, at the menu level for the franchisees versus a year ago to pay for this?

EBITDA right now and how much that might be easier comparisons later, and then how much higher our tims, Canada prices you know what the menu level for the franchisees versus a year ago due to pay for this thanks so much.

Speaker 6: Yeah, Dave, thanks for the question. Hey, it's Matt here. I was just going to share some comments on your question on the supply chain margin, and I think Jose was going to jump in with some thoughts as well. But, you know, specifically as it relates to the quarter in the supply chain, you know, we had talked last quarter about, you know, some pressure on the sales cost to sales margin, and we were expecting it to come down a bit given the volatility that was out there.

Hey, David.

Thanks for the question, it's Matt here I was just going to share. Some comments on your question the supply chain margin and I think Jose was gonna jumping with some thoughts as well.

But specifically as it relates to the quarter and the supply chain, we had talked last quarter about some pressure on the sales cost of sales margin and we're expecting it to come down a bit given the volatility that was out there.

Speaker 6: And I think that's that's generally what we saw in the quarter, you know, we did come in a bit lower than than we had expected when we spoke in the third quarter. And I called out in the prepared remarks.

And I think that's generally what we saw in the quarter.

We did come in a bit lower than we had expected when we spoke in the third quarter.

And I called out in the prepared remarks.

Speaker 6: You know, there was an impact there related to inflation, obviously. And if you think about it, you know, the way our business works in terms of commodities, where we're seeing a bunch of volatility inflation.

There was an impact there related to inflation, obviously and.

And if you think about it.

The way our business works in terms of commodities, where we're seeing a bunch of volatility in inflation.

Speaker 6: Where we have pass-throughs, those pass-throughs are going through both, you know, the revenue and expense lines in the P&L, and so they have a little bit of a disproportionate impact as they flow through.

We have pass throughs those fast throughs are going through both the revenue and expense lines in the P&L and so they have a little bit of a disproportionate impact as they flow through.

Speaker 6: which is kind of what we saw in terms of the impact to our percentage margin.

Which is kind of what we saw in terms of the impact to our percentage margin.

Speaker 6: in the quarter. But that being said, you know, I think we're very positive on the trajectory of the business. And I think that's the most important thing. We're very excited to see the progress in the business at Tim's in the quarter, both in terms of

In the quarter, but that being said I think we're very positive on the trajectory of the business and I think that's the most important thing we're very excited to see the progress in the business at tims in the quarter. Both in terms of sales and volumes falling along with that and as a result of that.

Speaker 6: And as a result of that, you know, it didn't really have a material impact on our dollar profit.

It didn't really have a material impact on our dollar profit right. So we saw healthy year over year growth on a dollar basis in the supply chain.

Speaker 6: So we saw healthy year-over-year growth on a dollar basis in the supply chain.

Speaker 6: I think where we are now, we're obviously still facing a bunch of volatility out there. We aren't giving specific margin guidance, but we are managing costs and pricing in a really disciplined way and focused on really driving guest experience and delivering great value to our guests and maintaining.

I think where we are now we're obviously still.

Still facing a bunch of volatility out there, we aren't giving specific margin guidance, but we are managing costs and pricing in a really disciplined way.

And focused on really driving our guest experience and delivering great value to our guests and maintaining.

Speaker 6: best-in-class service levels from our supply chain, which we think is a pretty key advantage for the system in Canada. I'll let Jose jump in with some other thoughts as well. Thanks, Matt.

Best in class service levels from our supply chain, which we think is pretty pretty key advantage for the system in Canada.

Jumping with with some other thoughts as well thanks, Matt.

Speaker 4: Yeah, Dave, the second part of the question was on pricing to the consumer, and as we've mentioned before, we work closely with our franchisees.

Yeah, David on your second the second part of the question was on on pricing to the consumer and as we've mentioned before we work closely with our franchisees.

Speaker 4: and also third parties to help guide and determine the right pace and level of pricing. We're, you know, we're quite structured and data-driven in that regard, and we run the process on a regular basis just to keep an eye on what's happening. We also look closely at what's happening in the marketplace and trends with competitors as well. In Canada, as well as in the U.S., we've tended to price.

And also third parties to to help guide them.

Determined the right pace.

And level of pricing.

We're quite <unk>.

Structured and data driven in that regard and we run the process on a on a regular basis just to keep an eye on what's happening. We also look closely at.

What's happening in the marketplace and trends with the with competitors as well.

In Canada, and as well as in the U S. We've we've.

<unk> tended to price in line with CPI and <unk>.

Speaker 4: in line with CPI and, you know, CPI in Canada's

CPI and candidates.

Speaker 4: It's been probably in 21 about a half or even slightly below half of what we've seen in the.

It has been probably in 'twenty, one about half or even slightly below half of what we've seen in the.

Speaker 4: in the U.S. and so pricing for TIMSS in Canada has been right around CPI, actually just under it.

In the U S and so pricing for.

Tim's in Canada has been right around CPI, just just actually just under it.

Speaker 4: And so we'll continue to monitor this. It's really important for us to ensure that we control the demand side of it and not get too far ahead of the consumer from a pricing standpoint. And our teams work closely with the owners in Canada and with our supply chain teams to ensure that we have the right.

And so we'll continue to monitor this it's really important for us to ensure that we manage to.

To control the demand side of it or not.

Too far ahead of our of the consumer from a pricing standpoint, and our teams were closely with the owners in Canada and with our supply chain teams to ensure that we have the right.

Speaker 4: pricing going forward and continue to create that strong demand for our beverages and food throughout all day parts.

Pricing.

Going forward and continue to create that strong demand for our beverages and food throughout all day parts. Thanks for the question.

Thank you David we'll take our next question from John Glass of Morgan Stanley . John . Please go ahead.

Speaker 1: Thank you David. We'll take our next question from John Glass of Morgan Stanley . John please go ahead.

Speaker 9: Thanks very much. Tommy, you mentioned franchisee profitability at Burger King being under some pressure just given inflation and the sales results. Can you maybe frame what the average profitability looked like in 21 versus 19 or some way to sort of measure how you think franchisee profitability is today?

Thanks, very much Tom you mentioned, you're a franchisee profitability at Burger King being under some pressure just given inflation and the sales results can you maybe frame what the average profitability looks like in 'twenty, one versus <unk> 19, or some way to sort of measure how you think franchisee profitability is today.

Speaker 9: Do you think that system has the wherewithal to continue to reinvest in the business the way you want them to, just given that profitability? And do you think the solution is just to help them operationally improve profitability and therefore they can reinvest? Or do you think there's a more significant role in corporate investment to help them achieve those goals of re-imaging the system?

Do you think that system has the wherewithal to continue to reinvest in the business. The way you want them to just given that profitability and do you think the solution is just to help them operationally improve profitability and therefore, they can reinvest or do you think there's a more significant role in corporate investment to help them achieve those goals of re imaging the system.

Speaker 3: Thank you, John . You know, franchisee profitability is going to be a big key to our long term success. And as we came out of 2020, we had very strong profitability despite a difficult time. And that really speaks to the resilience of the business model.

Yes. Thank you John franchisee profitability is going to be a big key to our long term success and as we came out of 2020, we had very strong profitability. Despite a difficult time and that really speaks to the resilience of the business model, but you know that.

Speaker 3: You know, that said, we worked through a lot of headwinds last year and saw an overall decline in profitability in 2021. We did see some positive signs in Q4 where we were flat to Q3, nominally and as a percentage of sales despite.

That said, we worked through a lot of headwinds last year and saw an overall decline in profitability in 2021, we did see some positive signs in Q4, we were flat Q3, nominally and as a percentage of sales. Despite the inflation headwinds and just positively we started to see some progress at the end of the year from our profitability.

Speaker 3: the inflation headwinds, and just positively we started to see some progress at the end of the year from our profitability initiatives specifically.

Initiatives initiatives, specifically, so as we go forward, we're doing a lot on this front.

Speaker 3: So as we go forward, we're doing a lot on this front. And we're positive and our franchisees are also very optimistic that this will have a positive impact in 2022 and beyond and help create the ability to invest more.

And where are we are positive and our franchisees are also very optimistic that this will have a positive impact in 2022 and beyond and help create the ability to invest more so on the cost side, we're hoping we're helping to diversify sourcing tool.

Speaker 3: So on the cost side, we're helping to diversify sourcing and to alleviate cost pressures and supply chain risks.

To alleviate cost pressures and supply chain risk on the labor front <unk> talked a lot about simplifying life in the restaurants.

Speaker 3: on the labor front, talked a lot about simplifying life in the restaurants.

Speaker 3: and addition of restaurant technology opportunities that can help drive efficiency as well.

And addition of tech of restaurant technology opportunities that can help drive efficiency as well.

Speaker 3: So our near-term plan in next year is to try to drive about $500 million of annualized price and price-related efficiencies to the system. Part of that comes through utilizing those new approaches in Guest Insights.

So our near term plan to next year to try to drive about $500 million of.

Annualized price and price related efficiencies to the system.

Part of that comes through utilizing those new approaches and guest insights we started to roll those out in Q4 by the way in.

Speaker 3: We started to roll those out in Q4, by the way, and expect to complete those in 2022, once again, providing us with a roadmap and a backdrop for future investment. And as we mentioned earlier, you know, we do think we have a role to play. Matt, Jose, myself, we're working closely together. It's something we talk about almost every day. And then we'll have more later in the year on what that will look like. And also, we'll be working closely with our franchisees on that plan.

And expect to complete.

Those in 2022, once again, providing us with a roadmap and a backdrop for future investment and as we mentioned earlier, we do think we have a role to play Matt Jose myself, we're working closely together, it's something we talked about almost every day and then and then we will have more later in the year on what that will look like.

So we'll be working closely with our franchisees on that plan.

Thanks, Tom. Thank you. Thanks for the question. Thanks, John .

Speaker 1: Thank you, John . We'll now be moving over to our next question from Dennis Geiger.

Thank you Sean will now be moving over to our next question from Dennis Geiger.

From UBS Denis Please go ahead.

Great. Thanks for the question and then everyone for the details this morning.

Speaker 2: Great, thanks for the question and to everyone for the details this morning.

Speaker 2: Jose, I appreciate all the color on Tim Hortons and the improvements that the brand saw through the quarter. I'm wondering if you could talk a little bit more about how you view the brand's position this year to make

I appreciate all the color on Tim Hortons in the improvements the brand saw through the quarter wondering if you could talk a little bit more about how you view. The brand is positioned this year to make further gains based on everything you highlighted in the work the team has done across the menu and marketing and digital and more particularly as the restrictions in Canada begin to ease.

Speaker 2: further gains based on everything you highlighted and the work the team has done across menu and marketing and digital and more, particularly as the restrictions in Canada begin to ease and mobility improves. You know, maybe specifically, if you could kind of touch on sort of the strength maybe that you're seeing on those brand, customer brand closeness scores that you've highlighted previously or whether the brand is taking market share currently in Canada. Thank you.

And mobility improves maybe specifically if you could kind of touch on sort of the strength, maybe that youre seeing on those brand customer brand closeness scores that you've highlighted previously or or whether the brand is taking market share currently in Canada. Thank you.

Great. Thanks, Dennis I appreciate the question Yeah as I mentioned that we were excited and encouraged by the progress in Q4 it.

Speaker 4: Great, thanks, Dennis, appreciate the question. Yeah, as I mentioned, we were excited and encouraged by the progress in Q4. It was a well-balanced plan that was executed well by the owners and by our team. We saw growth in our core performance and kind of the underlying core business was moving in a really good direction. Our digital business, as I touched on and Josh mentioned as well, was really strong.

It was a.

A well balanced.

Land that was executed well by the owners and by our team.

We saw growth in our core performance and kind of the underlying core business was moving in a really good direction our digital business.

As I touched on and Josh mentioned as well is really strong and we saw some really good execution of of the promotions.

Speaker 4: And we saw some really good execution of the promotions in the quarter, including the promotion around hockey cards, as well as the promotion with Tim Beibs, something we've done consistently over the years, and we think we can continue to do going forward, relevant promotional activity to create engagement with our consumers, both digitally as well as in restaurants.

In the quarter, including the promotion of around hockey cards as well as the promotion with the with the <unk> something we've done consistently over the years.

And we think we can continue to do going forward relevant promotional activity too to create engagement with our consumers both digitally as well as in restaurants.

Speaker 4: We're encouraged by the progress, and obviously towards the end of the quarter and the beginning of 22, we saw a bit of a surge with the Omicron variant, and we saw some restrictions being implemented in Canada, as we've seen from time to time. Those are easing now. There were some announcements earlier this week, which we believe...

We're encouraged by the progress obviously towards the end of the quarter and at the beginning of 'twenty two we saw a.

A bit of a surge in with dependent with the <unk>.

Varian and we saw some restrictions being implemented in Canada as we've seen from time to time those are easing now there was some announcements earlier this week.

Which are which we believe.

Speaker 4: We'll, you know, we'll kind of continue down the road. For us, we believe our business plan is focused, you know, entirely

Well.

We kind of continue down down the road for US we believe our business plan is focused entirely.

Speaker 4: on addressing our food, our excellent food and beverages. We're also quite focused on the...

On addressing.

Our food our excellent food and beverages, we're also quite focused on the.

Speaker 4: on the digital side of the business. And so trends continue to be encouraging. The brand metrics, as I touched on.

On the digital side of the business and so the trends continue to be encouraging that the brand metrics as I touched on are positive and also encouraging and we continue to see good momentum as we head into the second half of the quarter and look forward to sharing our progress and Matt maybe you can touch on on some of the commentary yes.

Speaker 4: are positive and also encouraging and we continue to see good momentum as we head into the second half of the quarter and look forward to sharing progress and Matt maybe you can touch on some of the comments there. Yeah, thanks Dennis. You know, just related to market share, just a couple ones to kind of throw out there for you. You know, we did see in the important area of food innovation, which we've been focused on and we've seen a lot of good results.

Dennis just related to market share just a couple ones to kind of throw out there for you. Yes, we did see an important area of food innovation, which we've been focused on and we've seen a lot of good results.

Speaker 6: So far against the plan, you know, we did see breakfast food market share grow over 300 basis points year-over-year improvement.

So far against the plan.

Did see breakfast food market share grow over 300 basis points year over year improvement.

Speaker 6: you know, based on high single-digit growth in breakfast foods versus 19. And we also saw really, really nice, strong growth in lunch foods as well, which were up over 20% versus 2019, and also improving in terms of market share.

Based on high single digit growth in breakfast foods versus 19, and we also saw really really nice strong growth in lunch foods, as well, which were up over 20% versus 2019.

And also improving in terms of market share.

Thanks for the question.

Thank you Dennis we will take our next question from Jeffrey Bernstein.

Speaker 1: Thank you, Dennis. We'll take our next question from Geoffrey Bernstein of Buckhead.

Oh Barclays Jefferies. Please go ahead.

Speaker 2: Great. Thank you very much. Tom, welcome to the call. It's great to have brand leadership contributing. You know, just following up on the Burriking franchisee, you know, profits being under pressure, I'm just wondering whether you think that that limits certain investments or initiatives that you want to implement in 22. And I know you mentioned working with Jose and Matt and others. Is there a chance for, you know, maybe some sort of contribution to the Burriking system, similar to what you made?

Great. Thank you very much Tom welcome to the call it's great to have brand leadership.

Contributing.

Just following up on the Burger King franchisee.

It's being under pressure just wondering whether you think that that limits certain investments or initiatives that you want to implement.

22, and I know you mentioned working with Jose and Matt and others is there a chance for you know.

And maybe some sort of contribution to the Burger King system similar to what you made.

Speaker 2: important uh... this past year which seemed to be a positive for you

Importance this past year, which seem to be a big positive for you.

And just on that franchise profit front I'm, just wondering whether you can share your thoughts around the menu pricing for that specific BK brand.

Speaker 2: And just on that franchise profit front, I'm just wondering whether you can share your thoughts around the menu pricing for that specific BK brand. You know, maybe where you think the system closed in 21 to protect that profit and maybe some suggestions.

You know, maybe you or where you think the system closed in 'twenty, one to protect that profit and maybe some suggestions for 2022 to balance traffic and value and margin any thoughts there would be great. Thank you.

Speaker 2: for 2022 to balance traffic and value and margin. And he thought they would be great. Thank you.

Thank you Geoffrey.

Speaker 3: Thank you, Jeffrey. On the contributions, like I said, we're working thoughtfully on what that plan could look like. And yes, there's a thought that we can help there and work with our franchisees on what a multi-year investment plan would look like. However, you know.

The contributions like I said, we're working thoughtfully on what that plan could look like and yes. There is there's a there's a there's a thought that that can that we can help there and work with our franchisees on what an investment a multi year investment plan would look like.

However in the short run.

Speaker 3: We're very focused on the operational improvements that we can make.

We're very focused on the operational improvements that we can make to help profitability and also.

Speaker 3: to help profitability and also, you know, some interventions that we could do on the marketing front to improve profitability there as well.

Interventions that we could do on the marketing front to improve profitability, there as well as well on pricing specifically.

Speaker 3: On pricing specifically, in late 21, we did lift some price caps on some selected items. And we've removed WAPR from our core discount, although we'll look for opportunity for some incremental discounting there in the future. But it won't be every single day. We have shown that we have some good price elasticity in a variety of areas.

In late 'twenty, one we did lift some price caps on some selected items and we've removed whopper from our core discount, although we will look for opportunity.

For some some incremental discounting there in the future, but it won't be every single day, we have shown that we have some good price elasticity in a variety of areas.

Speaker 3: And I think as anything, as we do those things over the course of the next couple of years, what's going to be very important to us and our operators is going to be, you know, keeping that guest experience great.

And I think as anything as we do those things over the course of the next couple of years, what's going to be very important to us.

Hudson our operators is going to be.

Keeping that guest experience great and we've also seen that.

Speaker 3: And we've also seen that, you know, those operators who outperform from a traffic perspective after taking price.

Those operators, who outperformed from a traffic perspective after taking price.

Speaker 3: also perform well in terms of, they can basically do pricing and maintain traffic. So all of those efforts really work together, those operational efforts alongside any real targeted pricing interventions to make sure that we can grow the business as well. And we saw some pretty good evidence of that in Q4, and once again, as I said, with our high-performing operators.

Also.

Performed well in terms of they can basically do pricing and maintain traffic. So all of that those efforts really work together those operational efforts alongside any any real targeted pricing interventions to make sure that we can grow the business as well and.

We saw some pretty good evidence of that in Q4, and once again as I said with our high performing operators.

Yeah.

Great. Thanks for the question Thanks, Don.

Thank you Jeffrey our next question comes from Andrew Charles of Cowen Andrey I T.

Speaker 1: Geoffrey. Our next question comes from Andrew Charles of Cowan. Andrew over to you.

Speaker 2: Great, thank you. Guys, really impressive traction the first three years in Tim Horton's China. Can we just get an update, though? I think, you know, with the Master Franchisee, Planet Eagle Public, they did share some store-level details, and just wanted to learn a little bit more around how it impacts, you know, your income statement. You know, based on their disclosure, it looks like, you know, AUV is around $450,000 to $500,000 or so.

Great. Thank you guys really impressive traction in the first three years and Tim Hortons, China can we just get an update though I think with the master franchisee planning to go public they did choose to store level details I just wanted to learn a little bit more around how it impacts your income statement.

Just on their disclosure it looks like <unk> is around 450 to $500000 or so and also would love to just the royalty I think it steps up over time, but it starts at around 1% to 2%.

Speaker 2: uh... and also look at just the royalty i think it steps up over time to start that around one two percent uh... just what what what to help to connect the dots between their store economics and how it impacts

Most of the help just connecting the dots between their store economics, and how it impacts your income statements, obviously that becomes a larger percentage of our growth.

Speaker 2: Your income statement, obviously that becomes a larger percentage of growth.

Speaker 4: Yeah, Andrew, thanks for the question. We are really excited about the progress we're making in TIMSS in China. Obviously, as I mentioned in the prepared remarks, we crossed the 400 threshold there or kind of milestone in January , only opening the first one less than three years ago.

Yeah, Andrew Thanks for the question.

We are really excited about the progress we're making in tims in China, obviously as I mentioned in the prepared remarks, we cross the.

The 400 threshold, there or kind of a milestone in January only.

<unk> opened in the first one less than three years ago.

Speaker 4: We have a very ambitious long-term target for growth in China and view that as a great path to build the TIMSS international business throughout the region in Asia and also in other markets around the globe. So we're really excited and they're seeing some good growth as well from a comparable sales standpoint in 2021. Tremendous digital business as well, around 90% of the business is through digital channels.

Have a very ambitious long term targets for growth in China and viewed that as a great path to build the Tim's international business throughout the region and in Asia and also in other markets around the globe. So we're really excited and they are seeing some good growth as well from a from a comparable sales standpoint.

In 2021.

Tremendous digital business as well.

Around 90% of the business is through digital channels.

Speaker 4: And we're seeing significant improvements as well from an operational standpoint at the store level. I guess engagement and feedback there is really good.

And we're seeing significant improvements as well from from an operational standpoint at the store level guest engagement and feedback there is really good.

Yes.

Speaker 4: So, similar to what we see with Popeyes and we also saw with Burger King early days, as you build the brand internationally, there are different formats that we use, you'll see less, especially in Asia, you'll see less.

Similar to what we see with <unk> with.

With Popeye's and and we also saw with Burger King early days.

As you build the brand internationally there are.

Different formats that we use.

Youll see less especially in Asia Asia, Youll see less freestanding drive thru locations that youll see the formats that are more in line.

Speaker 4: free-standing drive through the locations, and you'll see the formats that are more inline and, you know, smaller footprint. We also see, you know, differing economics, as you pointed out, on the royalty, but also in terms of how our business internationally is principally a royalty-based business.

<unk> footprint.

Also seed.

Differing economics as you pointed out on the on the royalty, but also in terms of how.

Our business internationally is principally a royalty based business, we do in some cases.

Speaker 4: We do in some cases have had ramp ups in royalty, but the goal is to get back to kind of standardized.

Had ramp ups and royalty, but the goal is.

Is to get back to kind of standardized.

Speaker 4: royalty rates across the globe for all brands, and in many cases with these international businesses, as you're starting from scratch, you're building awareness. These are start-ups in many of these markets, and so you'll see...

Our royalty rates across the globe for all brands.

In many cases with these international businesses as Youre starting from scratch you're building awareness. These are startups in many of these markets and so youll see.

Speaker 4: AUVs grow over time as we, you know, connect and engage consumers better with the brand. They get, they understand the brand better. Frequency is being driven more and more. We have strong loyalty platforms in these markets, which allows for even higher frequency. So we're really excited and looking forward to sharing more on how we progress with Tim's, but also Popeye's and Firehouse alongside our BK international growth engine. Thanks so much for the questions.

<unk> grow over time as we can.

Connect and engage consumers better with the brand they get they understand the brand better frequency is being driven.

More and more we have strong loyalty platforms in these markets, which allows for even higher frequency. So we're really excited and looking forward to sharing more on on how we progressed with tenants, but also popeye's and firehouse alongside.

Our BK international growth engine. Thanks, so much for the question.

Thank you.

Yes.

Thank you Andrew we'll take our next question from Lauren Silberman of Credit Suisse. Please go ahead.

Speaker 1: Thank you, Andrew. We'll take our next question from Lauren Silverman of Credit Suisse.

Speaker 10: Thank you. I wanted to ask about Popeyes US. You talked about competitive pressures at the brand and given these competitive pressures are unlikely to abate, how are you thinking about the strategy to re-accelerate comps and market share?

Thank you I wanted to ask about pop is U S. You talked about competitive pressures at the brand and given these competitive pressures are unlikely to abate.

Are you thinking about the strategy to Reaccelerate comps and market share gains and then to what extent is the sales performance weighing on franchisee economics any appetite for development in the U S.

Speaker 10: And then, to what extent is the sales performance weighing on franchisee economics and the appetite for development in the U.S.?

Thanks.

Speaker 4: Great. Thanks for the question, Lauren. I think it's important to remember how significant the step change for Popeyes in the U.S. was in 2000.

Great. Thanks for the question Lauren I think it's important to remember how how significant the step change for <unk> in the U S was in 2018 heading into 19 and then throughout 2020, the business has changed dramatically in terms of.

Speaker 4: 18 heading into 19 and then throughout 2020 the business has changed dramatically in terms of

Speaker 4: AUVs or volumes on a per store basis as well as

<unk> is our volumes are on a per store basis as well as.

Speaker 4: four-wall EBITDA for the franchisees. We've seen tremendous appetite and engagement from all the franchisees around the country, existing and new ones as well, coming into the system because of the exciting unit economics.

Four wall EBITDA for the franchisees, we've seen a tremendous appetite and engagement from all the franchisees around the country existing and new ones as well coming into the system because of the exciting unit economics.

Speaker 4: We are facing, as we do with all brands in the U.S. and in more mature markets, there's a lot of competition. That's part of the business, but we think we have a differentiated product with the chicken sandwich as well as our nuggets that were launched and a lot of the innovation pipeline.

We are.

Facing us.

We do with all brands in the U S and in more mature markets, we theres a lot of competition.

That's part of the business, but we think we have a differentiated product with the chicken sandwich as well as our <unk>.

Doug It's that were launched in a lot of the innovation pipeline that we have on handheld chicken. We believe allows us to continue to grow long term of the business.

Speaker 4: that we have on handheld chicken, we believe allows us to continue to grow long-term the business, our investments in digital as well.

<unk> and digital as well, we believe are key drivers of growth for the brand in the U S in the quarters and years to come.

Speaker 4: we believe are key drivers of growth for the brand in the U.S. in quarters and years to come.

Speaker 4: And we think there's a tremendous opportunity here. So we'll continue to innovate and develop.

We think theres a tremendous opportunity here. So we'll continue to innovate and develop our menu to continue to address trends in the industry, but the key for popeyes in the U S will be to continue to deliver great tasting products that we have and do so.

Speaker 4: are many to continue to address trends in the industry but the key for Popeyes in the U.S.

Speaker 4: be to continue to deliver the great tasting products that we have and do so in a really efficient way in our restaurants. And that's the focus that the team has, investing in drive-thrus, investing in outdoor digital menu boards, investing in operations, and continuing to be there for our guests day-to-day. Thanks so much for the question.

And it really efficient way in our restaurants and that's the focus that the team has investing in drive thru is investing in outdoor digital menu boards investing in and operations and continuing to.

To be there for our guests day to day. Thanks, so much for the question.

Yeah.

Thank you Lauren we will take our last question today from Mark Petrie of CIBC Mark. Please go ahead.

Speaker 1: Thank you, Lauren. We'll take our last question today from Mark Petry of CIBC. Mark, please go ahead.

Yes. Good morning, Thanks for all the comments, Tom I'll Echo the other comments this morning, but just regarding the approach to marketing I heard your comments about the opportunities in the menu as well as in digital but I wanted to ask about the Burger King brand perception and I understand you're in a review of your creative accounts, but where do you think.

Speaker 6: Good morning. Thanks for all the comments, Tom. I'll echo the other comments this morning, but just regarding the approach to marketing, I heard your comments about the opportunities in the menu as well as in digital, but I wanted to ask about the Burger King brand perception, and I understand you're in a review of your creative accounts, but where do you think the Burger King brand has lagged, and where do you see the most opportunity this year?

The Burger King brand has lagged and where do you see the most opportunity this year.

Speaker 3: Thank you, Mark. I think that where we have the most opportunity is really redefining or defining who we are, having a relevant and distinct voice and that is one of the reasons that we took

Thank you Mark I think that.

Where we have the most opportunity is really redefining our defining who we are having a relevant and distinct voice and that is one of the reasons that we took.

Speaker 3: you know, we went out to agency review. So we're excited to kind of work on that brand positioning and defining our brand essence going forward. You know, I think we'll be focusing on our core, on the Whopper, flame grilling, having it your way. Those are really the things that made us great and the things that'll make us great going forward.

We went out to agency review.

So we're excited to kind of work on that brand positioning and defining our brand athletes going forward.

I think we will be focusing on our core on the whopper flame grilling, having it your way those are really the things that made us great and the things that'll make us great going forward. So I think just focusing on those things and doing it in a simplified way with added firepower to the distinct messages that will be out.

Speaker 3: So I think just focusing on those things and doing it in a simplified way with added firepower to the distinct messages that we'll be out there with are gonna be key for us to growing market share over the course of time going forward.

They're with are going to be key for us to growing market share over the course of time going forward. Thanks.

Thanks for the question.

Great.

Speaker 4: Thanks to everyone for their questions and for joining us this morning. I'm incredibly proud of the progress we made this quarter and throughout the year against a number of our key priorities, including driving sequential improvements at Tim Hortons in Canada, at Burger King in the U.S.

Thanks to everyone for their questions and for joining US. This morning, I'm incredibly proud of the progress we've made this quarter and throughout the year against the number of our key priorities, including driving some sequential improvements at Tim Hortons in Canada at Burger King in the U S enhancing our global digital capabilities and building a robust development pipeline to accelerate unit growth.

Speaker 4: Enhancing our global digital capabilities and building a robust development pipeline to accelerate unit growth

Speaker 4: in 2022 and beyond. I'd like to thank our team and franchisees for their contributions and their continued dedication and effort as we work together towards our big dream of building the most loved restaurant brands in the world. Thank you again for joining us and have a great day.

2022, and beyond I'd like to thank our team and franchisees for their contributed their contributions and their continued dedication and effort as we work together towards or Big Dream of building. The most loved restaurant brands in the world. Thank you again for joining us and have a great day.

Yeah.

Speaker 1: This concludes today's call. Thank you all for joining. You may now disconnect.

This concludes today's call. Thank you for joining you may now disconnect.

Speaker 11: The.

Yeah.

Uh huh.

Okay.

Okay.

Yeah.

Yeah.

Okay.

Okay.

Sure.

Right.

Sure.

Yeah.

[music].

Yeah.

Yes.

Yeah.

Yeah.

Yeah.

Yeah.

Okay.

Okay.

Yeah.

Yeah.

Okay.

Yes.

Okay.

Okay.

Yeah.

Okay.