Q1 2022 Restaurant Brands International Inc Earnings Call
Investment and level of product cannibalization meaningfully increasing same store sales contribution year on year. This is just the tip of the iceberg in terms of what we can do with the digital assets. We've built at Tim Hortons and I encourage anyone listening to tune into our Tim Hortons, Canada Investor Day in just a few hours to hear from the team on our digital journey as we scale our digital platforms at <unk>.
<unk> and <unk>, we believe we can leverage the wins, we've seen at Tim Hortons, while earlier days promotional initiatives did help drive digital engagement at both Burger King and Popeye's this quarter at Burger King Whopper melts performed well on digital channels and Mark. The first time, we offered exclusive builds and meals through our digital platform <unk> also made progress during the quarter.
Largely driven by a renewed focus on delivery, including enhancing service levels and the delivery experience on both first and third party platforms. In addition to marketing investments supporting delivery.
In the drive thru, we've discussed completing the rollout and effective utilization of our outdoor digital menu boards and I'm pleased that we are making consistent progress on our goal to equip 100% of our drive throughs and the U S and Canada across Burger King and Popeye's as we've mentioned in the past our Tim Hortons system is substantially complete and it is exciting to see the significant experience improvement.
These menu boards offer our guests and the efficiencies they bring to our restaurants with that I'll hand, it over to Matt to take you through our financials for the quarter, Thanks, Josh and good morning, everyone.
Before walking through our results I'd like to share a bit more detail on the impact of the actions, we announced as it relates to Russia we.
We had 820 fully franchise Burger King restaurants at the end of 2021 that represented about 2% of our system wide sales and one 7% of our EBITDA in 2021.
During the first quarter, Russia had a roughly $12 million impact on a year over year adjusted EBITDA and we anticipate a fairly even impact across the year. In addition from a development standpoint over the last five years, Russia has averaged about 80 net new restaurants a year.
Despite the loss of this contribution the strength and diversification of our global partners across many growth markets keeps us well positioned to accelerate overall net restaurant growth in 2022.
Shifting to the first quarter overall, our global system wide sales grew 14% to $8 8 billion.
Up nearly $1 billion year over year, and our adjusted EBITDA was $530 million up 9% organically excluding firehouse.
As I mentioned, Russia had a negative $12 million impact on our results, which was a negative two 6% headwind to our adjusted EBITDA growth rate.
The remaining gap between our system wide sales growth and organic EBITDA growth was related to our 2021, G&A and technology investments, partially offset by positive timing in our AD funds. This quarter. We also made a slight change to the way we report revenues and expenses supporting certain technology initiatives to provide consistency across our brands as well as with industry peers.
We had previously included revenue at Burger King from technology fees, which are paid by the system as a function of digital sales levels in franchise and property revenues, while the associated technology expenses were included in BK segment G&A going forward. We will report these technology revenues and expenses under advertising and other services on our P&L.
We do expect to spend more on technology expenses, then we collect in revenues this year at BK as we build and enhance our capabilities with the intention of ramping our digital sales and the associated fees to fully fund these initiatives longer term during the first quarter. The net impact of $9 million of technology expenses and offsetting revenues was about negative $6 million.
Adjusted EBITDA or a negative 1% impact on our organic growth rate.
Related to this change we have included a quarterly reconciliation of the movements for 2021 and our press release. This morning, our first quarter segment G&A. After adjusting for this shift and excluding firehouse was $89 million, which was lower than the fourth quarter comparable level of $94 million that we mentioned would be a reasonable baseline for 2020 to do.
To some timing that we expect to reverse later this year.
On a year over year basis growth in segment G&A had a negative three 5% impact on our organic adjusted EBITDA growth rate as it relates to AD fund timing our year over year growth. This quarter reflects the fact that advertising expenses exceeded revenues by approximately $17 million less than they did in the first quarter of last year, resulting in an organic adjusted EBITDA.
Tailwind of about positive 3%.
Turning to EPS I would like to briefly discuss our sales cost of sales margin within our Tim Hortons segment.
As we've mentioned in the past few quarters and similar to what others across the industry have noted we are seeing a significant increase in commodity volatility leading to elevated levels of inflation as mentioned last quarter. Given the fact that we generally take a pass through approach inflation has increased both our revenues and expenses, which in turn results in dilution of our percentage margin we will.
To manage through the volatility that has extended into this year. However, we are encouraged by the underlying volume growth. We are seeing as we execute on our sales plan and the business in Canada continues to improve shifting to EPS, our first quarter adjusted earnings per share was <unk> 64.
Compared to 55 last year, representing an increase of approximately 17%, including an FX headwind of about negative 2%.
The higher growth compared to our organic adjusted EBITDA growth of 9% was mainly driven by contribution from firehouse subs and a reduced share count from our repurchase activity, partially offset by higher adjusted effective tax rate turning to our cash flow and capital structure during the quarter, we generated $224 million in free cash flow, enabling us to continue.
Investing in our business and follow through on our commitment to return capital to shareholders through both our industry, leading dividend and open market share repurchases against which we have been actively buying back shares and during the first quarter repurchased and retired approximately $2 9 million shares of our common stock for nearly $161 million. In addition.
And we returned approximately $241 million to our shareholders through a <unk> 54 per share dividend and we recently declared an additional dividend of <unk> 54 per common share and unit payable on July six consistent with our previously announced target of $2 16 for 2022.
And even with combined capital returns of over $400 million.
Our net leverage remains stable at five five times.
As Jose mentioned, we are excited by the underlying growth in the business, we're seeing and also with the capital allocation flexibility of this creates over time, given our high rates of cash flow conversion and over $2 billion of existing liquidity as we progress through 2022, we see clear opportunities to enhance our growth by building on our momentum attempts, which youll hear more about shortly.
Executing on our near term priorities at BK us accelerating digital across all brands and delivering on our big global development opportunities with that I'd like to thank everyone again for supporting us and joining the call. This morning, and we'll now open the line for questions.
Operator.
If you would like to ask a question. Please press star followed by one on your telephone keypad now when comparing to ask your question. Please ensure you on Omnichannel Anthony If you change your mind. Please press star followed by <unk>.
Our first question is from Dennis Geiger of UBS. Your line is now open. Please go ahead.
Great. Good morning, and thanks for the question I was wondering if Jose maybe you could talk a little bit more about what youre seeing.
From your customers across maybe the key home markets in the U S and Canada in particular.
Behaviours changed much in how the consumers are using the brand and.
And maybe most importantly, if you could just kind of tie how the BK in the tims brand our position in a more challenged consumer spending environment, recognizing that that both brands arguably more idiosyncratic drivers to improve market share, but just wondering if you could kind of talk about that positioning looking ahead as it relates to your plans. Thank you.
Yes, good morning, and thanks for the question Dennis.
Look we've seen consumer confidence tested surely by the pandemic.
And obviously in more recent months by the volatility.
That we're seeing across North America.
For the consumer the inflationary environment is certainly something that's top of mind, we've seen food at home inflation.
Being under a little bit more pressure over the last six months than food away from home, which creates.
For the restaurants based on a more positive environment.
Other things that we've seen in terms of consumer behavior is that the trends that were accelerated throughout the pandemic things like.
Off premise.
Service modes, whether it's digital rewards drive thru delivery is continue to be sticky.
And we're also seeing dining.
<unk> come back a bit.
As restrictions have eased, especially here in Canada, but really throughout North America in our home markets, we've seen diamond come back a bit.
All of this.
To say that we're very cognizant of.
The sensitivities that the guest has.
And we're taking a thoughtful approach I think.
The brands, both brands Tims and BK in.
In North America in Canada for Tims in U S for Burger King both brands have strong.
Kind of a balanced approach as to the menu and how we address consumer needs and our teams have been spending a lot of time thinking about that.
We're being thoughtful about the guest perception on what the competition is doing in our franchisees profitability as we think about addressing that.
Modest headwinds with pricing initiatives that we've seen throughout the last six to 12 months.
On the franchisee on our guests and making sure we keep.
In line with and understand what's happening with our competition and we're going to take a balanced approach throughout and b be long term in our view on how to address the immediate pressures that the consumer is feeling.
Thanks for the question.
Our next question is from Brian Mullan of Deutsche Bank. Your line is now open. Please go ahead.
Hey, Thank you just a question on <unk>.
I'm, just wondering if youre able to see a measurable impact from the AD fund contribution increases that took place.
Thats something thats, helping already or is it a bit too early.
And just wondering if that could be a tailwind over the course of this year and then just related to that.
Some encouraging commentary about March in particular.
Is it fair to think that margins back to maybe positive first 19 kind of how you talked about in December if youre willing to comment. Thank you.
Yes, Brian Thanks for the question.
We were encouraged by the positive momentum.
In Q1 in the second half of Q1.
And heading into the second quarter, we're seeing strong as I mentioned in my prepared remarks strong underlying core performance of the business with with coffee with breakfast.
And continued improvement in <unk> and.
In other day parts as well.
Obviously, the ease of restrictions and the increase in mobility has helped as well and we were we've been measured in our pricing in Canada, making sure. We don't get too far ahead of our Skus and get too far ahead of the.
France, the consumer as well.
I think some of the positive.
Indicators in the first quarter that I mentioned things like the Super urban business.
Your Vanity there has improved significantly as one of the better performing.
Areas of the business.
It was the same in Q4, so that I think thats.
A testament to the improvement in mobility. We also saw that Ontario was one of the stronger performing regions.
Which is which was one that had some of the stronger restrictions over the last 24 months.
We're going to share quite a bit more at the at the Tim Hortons Investor day, the first ever Investor day, a little bit later. This morning, I think it's at 11 o'clock, we have a lot of confidence in.
In the long term.
And the full year plan that we have here for Tim I think on the AD fund just coming back to that question, which is your first one.
That was a contribution that we made to the advertising fund here in Canada in 2021.
And we feel that the investments we've made there alongside our franchise owners. We are really important to to continue to double down on brand related messages as well as some of the improvements and coffee quality as well as some of the innovation on beverage and some of the improvements in breakfast.
We're encouraged by the progress there and we'll continue to.
To work closely with the owners to make sure we drive that part of the business long term. Thanks, so much.
Our next question is from David Palmer of Evercore. Your line is now open. Please go ahead.
Thanks, a question on Burger King rest of World same store sales growth.
Pre COVID-19 levels accelerated despite omicron, which was pretty good.
Which regions fueled growth in the quarter and generally do you expect growth to accelerate.
Except for I would imagine youre going to have more Russia negative impact I think you are including Russia in the comp base, there and I would imagine China will be bigger headwind into <unk> as well, but.
I'm wondering how we should be thinking about.
What markets are really fueling the growth.
And maybe some gives and takes in terms of markets going forward. Thanks very much.
Hey, great. Thanks for the question as I mentioned in my prepared remarks, we're excited.
The work that's happening internationally and the progress, we're making it's really broad based.
Across regions with the exception of.
Russia, and China that I mentioned with some headwinds given the more recent.
Restrictions there due to their zero Covid policy.
Across regions in <unk>.
Some of the key markets that we have larger markets Spain.
Korea.
Several others we've seen.
Combination of good work on the menu side.
Continued growth on the digital front.
Off premise continues to be a strong part of our growth with delivery.
Well as some curbside and digital rewards types of type of programs and then macro improvements with restrictions easing and mobility picking up.
Has has helped us drive growth as well in those markets.
And what we're seeing is in store dining and many of those markets, which is such a big part of it.
The business is snapping back so the combination of a good plans good digital and.
And good kind of macro environment has been positive for that business and we feel.
Confident in the long term there the teams are working closely with our master franchisees and in all the markets to continue to drive innovation and drive good brand messaging and continue to push on the digital platforms that are so important for growth in these markets. Thanks, so much for the question.
Our next question is from Brian Bittner of Oppenheimer <unk> Co. Your line is now open. Please go ahead.
Thank you. Thank you very much.
Two questions one could you help us understand the level of year over year pricing.
Both at Tim Hortons, Canada, and Burger King U S. That's the first question and second one just going back to David Palmer's question on on the Burger King International business.
I appreciate all the color that you just gave but can you maybe summarize why you believe your comps are now trending so far above pre Covid do you believe you took a lot of market share during COVID-19 outside the U S with the Burger King brand. So naturally these international markets are as they storm out of Cove.
You are just ending up with a better sales model or is it that digital has taken off just any more color on why these levels. Our comps are so much higher than pre COVID-19.
Yes, Thanks, Brian for the question for the two questions I'll start with the last one which continues on the prior one from Dave.
I think simply put the off premise business that grew quite quite significantly through the pandemic.
Stock or at least so far remains quite sticky and in on premise is coming back in digital has been a big part of both of those right. So internationally, we have a strong digital business through kiosks, as well and where we have.
As an example in western markets in Europe , where we have really strong.
Lunch and dinner pushes the.
<unk> helped quite a bit to alleviate some of the order.
<unk>.
Some of the restaurants will feel so the digital business has been.
Quite strong.
On premises is getting back to levels that we've seen before which I think the combination of stickiness of off premise and on premise growth is what's driving.
Some significant growth and as what we saw in the first quarter and we feel.
Confident long term in our plans for those markets.
In the quarters to come on.
On your first question on year over year pricing as I said in one of the earlier.
Our comments and responses we have been very.
And we're staying close to the consumer obviously, staying close to our franchisees and their P&L and staying close to the competition to make sure.
We take the right steps on pricing there as we're facing.
As everyone knows pretty meaningful pressure from a commodity standpoint and.
And so we're we're responding.
As appropriate and we've stayed relatively in line.
With with inflation.
CPI both in the U S as well as in Canada, and Canada inflation.
Lagging about 2% behind where we see it in the U S and so our pricing across the board is roughly in line with those two with those two measures. Thanks, so much for the question.
Our next question is from John Glass of Morgan Stanley . Your line is now open. Please go ahead.
Thanks, very much back on Tims is there a way to index or talk about absolute traffic levels at tims in Canada versus 19 to understand what the opportunity is to recapture that there may be inside of that can you talk about traffic levels at breakfast understanding that comp store sales are up but there is pricing there is mix theres a lot of dynamics in there. So just.
Looking at three year comps may not be the entire story on transaction specifically.
Yes, John Thanks, so much for the question, we haven't separated traffic and.
And that checks.
Historically and not planning to do so today.
Hey, Bob.
We have seen improvements quarter over quarter in terms of.
Of traffic flows into the restaurants part of this.
As I shared earlier I think is is a function of the good work that the team is doing on menu innovation as well as kind of core quality improvement. Some of it is a function of the messaging some of it is a function of mobility improving.
And at the same time some of it is a function of the measured approach that we're taking on on pricing.
We're always focused on making sure we don't lose traffic when we take pricing, especially in environment like we're facing today, but broadly speaking we are seeing improvements.
Inflows of customers through the drive throughs as well as in store.
And through our apps in Tims, Canada, and it's for those reasons I just laid out thanks so much.
Our next question is from Jeffrey Bernstein of Barclays. Your line is now open. Please go ahead.
Great. Thank you very much.
<unk>.
Corporates potential willingness to help your brands I guess, most specifically where most recently Burger King.
No. It was mentioned earlier about the Tim Hortons AD fund contribution that you guys helped with last year, So maybe along those lines.
And I know Jose you mentioned something about looking at ways to assist franchisees Burger King on an ongoing basis. So I'm just wondering what are maybe the options there.
It would be considered on your end.
As you would define I guess, helping assist.
The Burger King franchisees in this scenario.
Color you could provide would be great. Thank you.
Yeah.
Sure. Thanks for the question Jeff.
Yeah look we've historically.
We've talked about our capital allocation approach.
Investing in the business has been kind of the top priority and we've done it with tims, we've done it with BK.
<unk> contributed capital too to Remodels and other programs.
We're investing in G&A in our business as well I think last quarter. We shared investments we've made at Burger King two to add to grow the field teams by 50% in order to be able to support provide better training and just get closer to the business with our franchisees to be able to help them work through all the <unk>.
That we have in place long term for the business.
I think as it relates to your specific question on VK.
And any contributions are.
Our approach is we can take to be able to help the business. The focus is on on being able to drive growth and the BK U S business and we're looking at that and I've mentioned this in my prepared remarks in last quarter as well with Tom that we're looking at and working through plans with with the franchisees long term plans around marketing around the advertising.
Fund.
Drive more media firepower. There in addition to work to accelerate and have a meaningful impact on our real estate.
Restaurants image to be able to drive growth there and so we continue to work through that.
There was a number of options on the table both in terms of advertising in terms of image contributions.
We'll share more in the back half of the year as we as we finalize those plans.
You guys will be the first or after our franchisees the first to know thanks so much.
Our next question is from John <unk> of Goldman Sachs. Your line is now open. Please go ahead.
Alright, thanks for taking the question.
On Tim Hortons and certainly appreciate it.
Results there in that 30% plus I think you noted in the urban locations is there any way to frame, maybe those non urban locations and what the comp looks like there.
As we get a sense of maybe improving mobility trends.
Having a boost to those urban locations versus the non urban.
Hi, Jared yes. Thanks for the question we've seen the good news is we've seen growth.
On a year over year basis.
In all our Vanity so rural suburban urban and Super urban we've.
<unk> also seen growth in same store sales year over year or comparable sales year over year in all regions, Ontario, Quebec, Western and Atlantic.
Seen growth in different formats.
As well.
And different day parts as well so so the growth that we saw in the quarter and the improvements sequentially.
Q1 versus Q4.
It was pretty broad based and I don't think its a testament to what I mentioned earlier around the good work. The team is doing a good plan.
Excellent operational work that the franchisees and the owners are doing in their restaurants.
And the continued.
Easing of restrictions and improvement in mobility throughout the country.
Thanks, so much.
Yeah.
Our next question is from Nicole Miller of Piper Sandler. Your line is now open. Please go ahead.
Thank you good morning, I wanted to ask a question about Tim Hortons, and a 36% of sales or transactions that are digital.
Can you speak a little bit more to that cohort that you can now break that group in two and their behavior, especially behind frequency and spend thanks.
Yeah, Nicole good morning, and thanks for your questions Josh.
First of all we've been really pleased with the work that the team has done here in Canada.
All of our digital programs, particularly on Tims rewards I think you'll you'll get a chance to hear a lot more about it a little bit later today when the team shares it's more information during the Investor day.
I think a couple of the things that are kind of most most interesting to me at least are that we've seen in some of that consumer behavior that our tims rewards members tend to be the most loyal members of tenant the highest frequency I think that the frequency is I guess.
But it clearly astounding, it's really incredible how often our tims rewards members are using our app, how often they come and visit us.
And go to the stores and I think one of the other things that we've seen that's been really interesting to our teams here is is that we see as we deploy new features in the App things like our hockey challenge things like rollout, we see those guests to interact with our app, even more frequently so that's driving a lot of our thinking.
How we can evolve the tims rewards program and how we can evolve the app over time to drive even further engagement with such a large and loyal portion of our consumer base.
A lot of a lot of great things going on team doing really I'd say groundbreaking work.
Within our system and and also.
Also you'll get even more insights into that here in just a few hours.
Our next question is from Jake Bartlett of Truth Securities. Your line is now open. Please go ahead.
Great. Thanks for taking the question Mike was on the Burger King U S business.
Sure.
Customer satisfaction scores were improving and I'm, hoping you can give some more detail around that and maybe some context.
Satisfaction levels are now versus a couple of years ago.
How fast or how steep the trajectory of improvement.
Is.
And then through.
Through the rest of the year here you mentioned.
Youre talking to these efforts youre going to start to drive market share gains or improvement in sales in the back half of the year can you just help us understand some of the catalysts along the way specifically marketing you have a new agency or using it as.
Our new marketing campaign, you can telephone when that might start any catalyst along the way. In addition to the the metrics customer satisfaction would be helpful.
Yes, Jay Thanks for the question.
We have seen improvement as I mentioned in my prepared remarks on operations.
We're all satisfaction.
At Burger King in the U S.
And it's been a fun.
The improvements have been quarter over quarter, the last three quarters.
Encouraging I think it's great work from the franchisees as well as great work from the field teams.
Tom has put in place.
The the kind of the benefit there is that.
It's an outcome of a number of different initiatives, including simplification efforts that we started to make in the final quarter of 2021.
It's a function also of some of the additional support we're providing in the field.
It's just the beginning.
Wouldn't consider it a victory lap or a big celebration other than.
Confirmation that we're on the right track and we're putting resources and efforts.
Behind the right things, which is all about guest experience in guest satisfaction and Thats, where we think we have a tremendous opportunity with BK in the U S. I think more broadly as we think about <unk>.
Knowing the business and in the U S. Obviously marketing our menu plans as well as our communication plans are really important.
On the media front and on the advertising front, we've made changes.
Over the last or we announced changes last week, which we think are important.
As we as we look at driving better messaging more more targeted messaging.
With a clear brand positioning for Burger King in the U S.
And being able to punch at or above our weight from a from a media standpoint. So these are all.
Parts of our game plan. In addition to that we've talked about digital being a big unlock for the U S business continuing to.
To accelerate our plans on the digital front.
In doing so not just.
Kind of in store, but also.
Driving growth in digital through R. R.
Relatively ubiquitous drive thru.
Platform.
And then I think beyond that there is there is a lot of work to do as well on an image. We I commented on on having about 33% or 30 plus percent of our restaurants in the U S with the Burger King of Tomorrow image.
Working closely with the with our franchisees and.
And our teams to find ways to have even more impact.
On the guest experience through investments in the restaurants, which we think are one of the key unlocks as well for the business. So there's lots of lots to do but we've got a great team.
Working hard alongside our franchisees to build a plan and start executing it. So we'll keep you posted on on all those details.
As we come as we come to.
Kind of frame up those those plans alongside our franchisees in the coming months and quarters. Thank you.
Our next question is from Andrew Charles with Cowen. Your line is now open. Please go ahead.
Great. Thank you guys I have a two part question Jose to follow up on an earlier question as part of plans to assist BK U S. Franchisees are you guys exploring at under royalty relief.
Two years, you guys called out that store level profits were flat and obviously the industry is seeing quite a bit of commodity pressure in 2022, particularly it would be.
And then just my second question, Matt you highlighted that Burger King saw bad debt expense of <unk>, primarily in Russia.
Recall correctly bad debt expenses recorded 60 days after royalties are due in the conflict in Russia didn't escalate really until the middle to end of February . So if you can just help quantify that total bad debt expense in <unk> for Burger King and how much of that was Russia versus the U S. I think investors would really appreciate that thanks.
Thanks, Andrew on your first question.
I would say that.
The investments we're looking at and the work we're doing is to figure out how best to drive overall topline growth and profitability for the business and.
<unk>.
Image these are areas, where we think.
There is.
Tremendous.
Opportunity as we've seen with with terms as an example.
So those are areas we're looking at.
Considering royalty relief.
As one of the areas to look at.
Yes, I think.
Related to the second part of your question on bad debt I think the impact.
From Russia in the quarter I think we quantified in the prepared remarks is about $12 million that.
That was a combination of bad debt plus.
Shifting to cash recognition in the quarter.
As we talked about sort of our move away from the operations in Russia.
And so it was a combination of those two things that amounted to the overall impact on the quarter.
Which is a pretty good proxy.
Proxy for sort of the overall level of impact from the loss of business. There during the quarter to look at going forward and then outside of Russia. There I would say theres no material significant bad debt activity to call out.
Thanks for the question.
Our next question is from the line Silverman of Credit Suisse. Your line is now open. Please go ahead.
Thank you for the question I wanted to follow up on the comment on the U S. Consumer are you seeing any signs of trade down in any regions or markets and then specific to delivery are you seeing any shift in trends there or I guess, how are you thinking about the willingness of consumers to pay the premium for delivery in a more challenging consumer backdrop. Thank you.
Hi, Lauren Thanks for the question.
On the on the consumer and the U S consumer.
I think the behavior has been relatively consistent over the last six months, we havent seen any any material.
Trade down I think.
Theres always balanced in how the consumers interact with our brands.
With core being a strong part of it.
Core is an example of Burger King Whopper.
Another core items. So we're seeing strong performance in our core offerings as well as in some cases premium and.
And value continues to be a part of our business that we always.
Provide.
We think exceptional everyday value to our customers. So we haven't seen anything material shifting there.
And we continue to provide a balanced approach to our customers. Thanks, so much for the question.
And Lauren maybe I'll take the question on delivery.
Particularly for our U S businesses, our Burger King and Popeye's deliver.
Delivery businesses are probably the most relevant and largest for us I would say, we haven't seen any big departure in trend. There. We continue to see growth in both of those businesses and we're really focused on making sure that we're working really well together with our third party delivery providers to make sure that we bring the best possible experienced rguest, whether they order directly.
From us in the restaurant or through the delivery platforms, we're very focused on improving enhancing guest experience things like driver experience and the operations in the restaurants. So those are our big focus areas and that's where we've been working to make sure that we continue to drive growth there.
Well, thanks to everyone for your questions and for joining US. This morning, and we made notable progress this quarter against key priorities, including driving double digit comparable sales growth at Tim Hortons, Canada, and Burger King International and further narrowing the gap to peers at Burger King in the U S.
Reaching our highest levels of digital engagement over ever in our home markets and opening a record number of new restaurants in the quarter and returning over $400 million of capital to shareholders. Our results this quarter reflect a continued.
Effort and the hard work of our team our franchise owners and their team members and we believe we're well positioned to continue to build off our momentum in the year ahead. Thank you again for joining us and we look forward to connecting with all of you again later this morning at our Tim Hortons, Canada Investor day. Thanks, So much.
This concludes today's call. Thank you for joining you may now disconnect your line.