Q2 2023 Restaurant Brands International Inc Earnings Call

August 8, 2023

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Operator: Good morning, and welcome to the Restaurant Brands International Q2 2023 Earnings Conference Call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask a question. 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 queue. To exit the queue, you may press Star then two. All callers will be limited to one question. Please note this event is being recorded. I would now like to turn the conference over to Kendall Peck, RBI's Head of Investor Relations. Please go ahead.

Speaker 2: Good morning and welcome to the Restaurant Brand International 2nd Quarter 2023 earnings conference call. All participants will be in listen only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask a question. 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 queue.

Good morning, and welcome to the restaurant brands International second quarter 2020 Free earnings Conference call.

It won't be in listen only mode should you need assistance. Please signal a conference specialist by pre.

I think the stall.

He followed by zero after today's presentation, there will be an opportunity to ask a question.

To ask a question you May press Star then.

One on your telephone keypad, you will hear I tied to confirm that you are in the Q.

Speaker 2: To exit the queue, you may press star then 2. All callers will be limited to one question.

To access the queue you May press Star then two all callers will be limited to one question.

Speaker 2: Please note this event is being recorded. I would now like to turn the conference over to Kendall Peck, RBI Head of Investor Relations. Please go ahead.

Please note. This event is being recorded I would now like to turn the conference over to Kendall Peck.

B I head of Investor Relations. Please go ahead.

Kendall Peck: Thank you, operator. Good morning, everyone, and welcome to Restaurant Brands International's earnings call for Q2 ended 30 June 2023. As a reminder, a live broadcast of this call may be accessed on the investor relations webpage at rbi.com/investors, and a recording will be available for replay. Joining me on the call today are Restaurant Brands International's Executive Chairman, Patrick Doyle, CEO, Josh Kobza, and CFO, Matt Dunnigan. 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. Reconciliations of non-GAAP financial measures are included in the press release available on our website. During portions of the call today, we will be referencing franchisee profitability measures that are based on unaudited self-reported franchisee results.

Speaker 3: Thank you operator. Good morning everyone and welcome to restaurant brands internationals earnings call for the second quarter ended June 30th, 2020.

Thank you operator, good morning, everyone and welcome to restaurant brands Internationals earnings call for the second quarter ended June 30th 2023.

Speaker 3: As a reminder, a live broadcast of this call may be accessed on the investor relations webpage at RBI.com forward slash investors and a recording will be available for re-

As a reminder, a live broadcast of this call may be accessed on the Investor Relations webpage at RBI Dotcom forward slash investors and a recording will be available for replay.

Speaker 3: Joining me on the call today are restaurant brand's international executive chairman, Patrick Doyle, CEO Josh Cobsa, and CFO Matt Zunig.

Joining me on the call today are restaurant brands International's Executive Chairman, Patrick Doyle, CEO , Josh Kobza, and CFO , Matt Dunnigan.

Speaker 3: 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 FCC final.

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.

Speaker 3: In addition, this earnings call includes non-GAAP financial

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 3: Reconciliation of non-GAF financial measures are included in the press release available on our...

Speaker 3: During portions of the call today, we will be referencing franchisee profitability measures that are based on unaudited, self-reported franchisee.

During portions of the call today, we will be referencing franchisee profitability measures that are based on unaudited self reported franchisee results.

Kendall Peck: In addition, the consolidated growth metrics discussed during the prepared remarks, including consolidated system-wide sales growth, comparable sales, net restaurant growth, and organic adjusted EBITDA growth, exclude results from our franchised restaurants in Russia, as we did not generate any new profits from restaurants in Russia in 2022 and do not expect to generate any new profits in 2023. Now I'll turn the call over to Josh.

Speaker 3: In addition, the Consolidated Growth Metrics discussed during the prepared remarks, including Consolidated Systemwide Sales Growth, Comparable Sales, Net Restaurant Growth, and Organic Adjusted EBITDA Growth, exclude results from our franchise restaurants in Russia as we did not generate any new profits from restaurants in Russia in 2022 and do not expect to generate any new profits in 2023. And now...

In addition, the consolidated growth metrics discussed during the prepared remarks, including consolidated system wide sales growth comparable sales net restaurant growth and organic adjusted EBITDA growth exclude results from our franchise restaurants in Russia as we did not generate any new profits from restaurants in Russia in 2022, and do not expect to.

Generate any new profits in 2023.

And now I'll turn the call over to Josh.

Josh Kobza: Good morning, everyone, and thank you for joining us on today's call to discuss our Q2 2023. Our franchisees and teams helped deliver another solid quarter with year-over-year consolidated system-wide sales growth of 14%, driven by 9.6% comparable sales and 4.1% net restaurant growth. This top line growth translated to 10.3% organic adjusted EBITDA growth and 6.6% organic adjusted EPS growth. We saw strong comparable sales at Tim Hortons and Burger King, including 12.5% growth at Tim Hortons Canada, 11.6% in our Burger King International businesses, and 8.3% at Burger King US. In addition, Popeyes US grew 4.2%, and Firehouse US was up 2.6% for the quarter.

Speaker 4: Good morning, everyone, and thank you for joining us on today's call to discuss our second quarter of 2020.

Good morning, everyone and thank you for joining us on today's call to discuss our second quarter of 2023.

Speaker 4: Our franchisees and teams help deliver another solid quarter with year-over-year consolidated system-wide sales growth of 14%, driven by 9.6% comparable sales and 4.1% net restaurants.

Our franchisees and teams helped deliver another solid quarter with year over year consolidated system wide sales growth of 14% driven by nine 6% comparable sales and four 1% net restaurant growth.

Speaker 4: This top line growth translated to 10.3% organic adjusted ebidome growth and 6.6% organic adjusted EPS growth.

This top line growth translated to 10, 3% organic adjusted EBITDA growth and six 6% organic adjusted EPS growth.

Speaker 4: We saw strong comparable sales at Tim Hortons and Birgkin, including 12.5% growth at Tim Hortons, Canada, 11.6% in our Birgkin International businesses, and 8.3% at Birgkin, US.

We saw strong comparable sales at Tim Hortons, and Burger King, including 12.5% growth at Tim Hortons, Canada, 11, 6% and our Burger King International businesses.

Eight 3% at Burger King U S.

Speaker 4: In addition, Popeye's US grew 4.2%, and Firehouse US was up 2.6% for the quarter.

In addition, popeye's U S grew four 2% and firehouse U S was up two 6% for the quarter.

Josh Kobza: We were pleased to see these top line results, as well as continued moderation in overall cost inflation, help deliver another quarter of year-over-year growth in franchisee profitability. Improving franchisee profitability remains one of our most important priorities, and I am confident in the plans we have in place to continue driving restaurant-level EBITDA growth this year for each of our brands. As it relates to our own adjusted EBITDA growth this quarter, it was a little bit lower than our system-wide sales growth, which was largely due to previously discussed investments we are making in the Burger King US system. Those investments are already delivering the expected results in top line growth and franchisee profitability, and Matt will provide more detail later on. We opened 169 net new restaurants in Q2 and overall restaurant count grew 4.1%.

Speaker 4: We were pleased to see these top-line results, as well as continued moderation and overall cost inflation, helped deliver another quarter of year-over-year growth in franchisee profitability.

We were pleased to see these topline results as well as continued moderation in overall cost inflation helped deliver another quarter of year over year growth in franchisee profitability.

Speaker 4: Improving franchisee profitability remains one of our most important priorities. And I am confident in the plans we have in place to continue driving restaurant level EBITDA growth this year for each of our

Improving franchisee profitability remains one of our most important priorities and I'm confident in the plans we have in place to continue driving restaurant level EBITDA growth this year for each of our brands.

Speaker 4: As it relates to our own adjustity of a dog road this quarter, it was a little bit lower than our system wide sales growth, which was largely due to previously discussed investments we are making in the Burger King US.

As it relates to our own adjusted EBITDA growth this quarter. It was a little bit lower than our system wide sales growth, which was largely due to previously discussed investments, we're making in the Burger King U S system.

Speaker 4: Those investments are already delivering the expected results in top line growth and franchisee profitability. And Matt will provide more detail later.

Those investments are already delivering the expected results in top line growth and franchisee profitability and Matt will provide more detail later on.

Speaker 4: We opened 169 net new restaurants in the second quarter and overall restaurant count grew 4.1.

We opened 169 net new restaurants in the second quarter and overall restaurant count grew four 1%.

Josh Kobza: Development is always more heavily weighted towards the H2 of the year, and our teams are very focused on delivering their full year pipelines while also setting in place plans for 2024. Before I turn to our brand level results, I'd also like to highlight that we released our 2022 Restaurant Brands for Good report last week, which discusses the achievements our brands made in becoming more sustainable. I encourage you to read about the progress we are making across our food, planet, and people and communities pillars. While I'm very proud of the work our teams are doing, I also know that this space is evolving quickly, and we are continually adapting to make sure we do the same. Now let's turn to performance by brand, starting with Tim Hortons in Canada.

Speaker 4: Development is always more heavily weighted towards the second half of the year. And our teams are very focused on delivering their full year pipelines, while also setting in place plans for 2024.

Development is always more heavily weighted towards the second half of the year and our teams are very focused on delivering their full year pipelines. While also setting in place plans for 2024.

Speaker 4: Before I turn to our brand level results, I'd also like to highlight that we released our 2022 Restaurant Brands for Good Report last week, which discusses the achievements our brands made in becoming more sustainable.

Before I turn to our brand level results I'd also like to highlight that we released our 2022 restaurant brands for good report last week, which discusses the achievements of our brands made in becoming more sustainable.

Speaker 4: I encourage you to read about the progress we're making across our food, planet, and people in communities built.

I encourage you to read about the progress, we're making across our food planet and people and communities pillars.

Speaker 4: While I'm very proud of the work our teams are doing, I also know that this space is evolving quickly, and we are continually adapting to make sure we do the same.

While I'm very proud of the work our teams are doing I'd also note that this space is evolving quickly and we are continually adapting to make sure we do the same.

Speaker 4: Now let's turn to performance by brand, starting with Tim Hortons in Canada.

Now, let's turn to performance by brand starting with Tim Hortons in Canada.

Josh Kobza: We saw a healthy mix of check, traffic, and strong calendar initiatives drive comparable sales of 12.5% and system-wide sales growth of 12.8%. These results were driven by strength in our core offerings, continued expansion into cold beverage and PM food, improved speed of service, and a record year for Smile Cookie, which shifted from Q3 into Q2 this year. Results for the quarter were also aided by improvements in mobility. During the quarter, we sustained our market share leadership across our core categories, including over 70% in hot brewed coffee and over 60% in breakfast. In addition to the growth opportunities in cold coffee and beverages. Our market leadership in hot brewed coffee is higher today than it was in 2019, demonstrating the team's progress across all categories.

We saw a healthy mix of check traffic and strong calendar initiatives drive comparable sales of 12, 5% in system wide sales growth of 12, 8%.

Speaker 4: We saw a healthy mix of check, traffic, and strong calendar initiatives drive comparable sales of 12.5%. And system-wide sales growth of 12.8%.

Speaker 4: These results were driven by strength in our core offerings, continued expansion into cold beverage and PM food, improved speed of service and a record year for smile cookie, which shifted from Q3 into Q2 this year. Results for the quarter were also aided by-

These results were driven by strength in our core offerings continued expansion into cold beverage NPM food improved speed of service and a record year for smile, Cookie, which shifted from Q3 into Q2 this year.

For the quarter were also aided by improvements in mobility.

Speaker 4: During the quarter, we sustained our market share leadership across our core categories, including over 70% in hot brood coffee and over 60% in breakfast.

During the quarter, we sustained our market share leadership across our core categories, including over 70% in hot brewed coffee and over 60% in breakfast in.

Speaker 4: In addition to the growth opportunities in cold coffee and beverages, our market leadership in hot brewed coffee is higher today than it was in 2019. Demonstrating the team's progress across all categories.

In addition to the growth opportunities in cold coffee and beverages, our market leadership in hot brewed coffee is higher today than it was in 2019, demonstrating the team's progress across all categories.

Josh Kobza: The team is making good progress with its efforts to become a bigger player in the high growth cold beverage category and saw cold beverage sales grow 16.6% year over year. Cold beverage results this quarter were aided by the expansion of our Quenchers platform and innovation across our specialty cold coffee offerings. Sparkling Quenchers proved to be highly incremental to beverage sales and served as a good contributor to ticket growth this quarter. We also further expanded our PM food offerings with improvements to our Anytime Snackers and new innovations around our loaded bowl and wraps, including barbecue crispy chicken, which attracted new younger guests to our restaurants. These offerings contributed to 14.2% year over year growth in our PM food sales.

Speaker 3: The team is making good progress with its efforts to become a bigger player in the high growth cold beverage category and saw a cold beverage sales growth 16.6% year over year.

The team is making good progress with its efforts to become a bigger player in the high growth cold beverage category and saw a cold beverage sales grew 16.

6% year over year.

Speaker 3: Cold beverage results this quarter were aided by the expansion of our Quentures platform and innovation across our specialty cold coffee.

Cold beverage results. This quarter were aided by the expansion of our <unk> platform and innovation across our specialty cold coffee offerings.

Speaker 3: Sparkling flenshures proved to be highly incremental to beverage sales and served as a good contributor to ticket growth this quarter.

<unk> proved to be highly incremental to beverage sales and serves as a good contributor to ticket growth this quarter.

Speaker 3: We also further expanded our PM food offerings with improvements to our anytime snackers and unit innovations around our loaded bowl and wraps, including barbecue crispy chicken, which attracted new younger guests to our restaurant.

We also further expanded our PM food offerings with improvements to our anytime Snackery and unit innovations around our alluded bohlen reps, including barbecue crispy chicken, which attracted new younger guests to our restaurants.

Speaker 3: These offerings contributed to 14.2% year-over-year growth in our PM food sales.

These offerings contributed to 14, 2% year over year growth in our PM food sales.

Josh Kobza: Moving to operations, restaurant team members have done a great job balancing the addition of our new food and beverage offerings with strong restaurant level execution. Our teams improved speed of service by 2 seconds year over year, reaching just north of 36 seconds for the quarter. Faster speed of service, combined with our new offerings, helped drive increased guest satisfaction and an increase in our QSR traffic share. We're really proud of the digital experience Tim Hortons offers its guests and believe it can continue to drive growth for the brand. With 4.9 million monthly average users this quarter, we have the number one food and beverage app in Canada and have sustained a digital sales mix of roughly 33%.

Speaker 3: Moving to operations, restaurant team members have done a great job balancing the addition of our new food and beverage offerings with strong restaurant level execution.

Moving to operations restaurant team members have done a great job balancing. The addition of our new food and beverage offerings with strong restaurant level execution.

Speaker 3: Our teams improve speed of service by two seconds zero per year, reaching just north of 36 seconds for the quarter.

Our teams improve speed of service by two seconds year over year, reaching just north of 36 for the quarter.

Speaker 3: Faster Speed of Service, combined with our new offerings, helps drive increased guest satisfaction and an increase in our QSR traffic share.

Faster speed of service combined with our new offerings helped drive increased guest satisfaction and an increase in our <unk> traffic share.

Speaker 3: We're really proud of the digital experience Tim Horton's offers his guests and believe it can continue to drive growth for the brand.

We're really proud of the digital experience Tim Hortons offers its guests and believe it can continue to drive growth for the brand.

Speaker 3: With 4.9 million monthly average users as core, we have the number one food and beverage app in Canada, and have sustained a digital sales mix of roughly 33%.

With $4 9 million monthly average users this quarter, we have the number one food and beverage App in Canada and is sustained the digital sales mix of roughly 33%.

Josh Kobza: To further engage Canadians and make it even easier to earn rewards, we partnered with two payment service providers to launch a Tim's credit card that is fully integrated within our app. It's still early, but we are excited for this new way to engage and drive further loyalty with our members. At Tim Hortons, we pride ourselves in being a community-led brand. This quarter, our beloved Smile Cookie campaign raised a record-breaking amount of almost CAD 20 million for more than 600 local charities. Following Smile Cookie, Tim Hortons restaurant owners, team members, and volunteers raised an additional CAD 13 million during the month of July for Tim Hortons Foundation Camps, our signature charity that turns 50 years old next year, after helping more than 300,000 children in Canada and the US over the years.

Speaker 3: To further engage Canadians and make it even easier to earn rewards, we partnered with two payment service providers to launch a Tim's credit card that is fully integrated within our app.

To further engage Canadians and make it even easier to earn rewards we partnered with two payment service providers to launch at Tims credit card that is fully integrated within our app.

Speaker 3: It's still early, but we are excited for this new way to engage and drive further loyalty with our members. At Tim Horns, we...

It's still early but we're excited for this new way to engage and drive further loyalty with our members.

At Tim Hortons, we pride ourselves in being a community led brand.

Speaker 3: This quarter, our beloved Smile Cookie campaign raised a record-breaking amount of almost $20 million Canadian dollars for more than 600 local charities.

This quarter, our beloved Smile Cookie campaign raised a record breaking amount of almost 20 million Canadian dollars.

For more than 600 local charities.

Speaker 3: Following smile cooking, Tim Horton's restaurant owners, team members and volunteers raised an additional $13 million Canadian dollars during the month of July for Tim Horton's Foundation camps. Our signature charity that turns 50 years old next year are after helping more than 300,000 children in Canada and the US over the years. I'm really proud.

Following smile Cookie, Tim Hortons restaurant owners team members and volunteers raised an additional 13 million Canadian dollars.

During the month of July for Tim Hortons Foundation camps, our signature charity that turns 50 years old next year or after helping more than 300000 children in Canada and the U S over the years.

Josh Kobza: I'm really proud of the results Axel and team continue to deliver in Canada. I also recognize the work the team is doing to sustainably grow the brand is really made possible by our incredible restaurant owners, their team members, and the support of their local communities. I'd like to thank our restaurant owners and guests for their continued support and dedication. We've got an amazing brand at Tims in Canada and a long runway for growth ahead. Turning now to Burger King, the international business grew Q2 system-wide sales by 18.4%, adding over $500 million of incremental sales year over year to represent nearly 60% of Burger King's worldwide sales in the quarter.

I'm really proud of the results excellent team continued to deliver on Canada. I also recognize the work. The team is doing to sustainably grow the brand is really made possible by our incredible restaurant owners their team members and the support of their local communities. So I'd like to thank our restaurant owners and guests for their continued support and dedication we have got an amazing brand at Tims in Canada.

Speaker 3: I also recognize the work the team is doing to sustainably grow the brand is really made possible by our incredible restaurant owners, their team members and the support of their local communities. So I'd like to thank our restaurant owners and guests for their continued support and dedication. We've got an amazing brand at Tenson, Canada and a long runway for growth.

And a long runway for growth ahead.

Speaker 3: Turning now to Burger King. The International Business grew second quarter system wide sales by 18.4%. Adding over $500 million of incremental sales year-over-year to represent nearly 60% of Burger King's worldwide sales in the quarter.

Turning now to Burger King the international business grew second quarter system wide sales by 18, 4%, adding over $500 million of incremental sales year over year to represent nearly 60% of Burger King's worldwide sales in the quarter.

Josh Kobza: These results were driven by net restaurant growth of 5.3% and continued top-line strength with comparable sales of 11.6%, reflecting positive traffic as well as higher check. We saw a good performance in some of our largest markets like France, Australia, the UK, and Spain, as well as markets where the brand is growing more quickly, such as Japan. We were also encouraged to see Australia join France, Germany, and Spain as the fourth international market to surpass the $1 billion system-wide sales mark on a trailing twelve-month basis. Our teams and master franchise partners take a guest-centric approach to everything from menu innovation to marketing. In general, we have newer restaurants overseas and as a result, more modern brand positioning with enhanced digital capabilities in both the front and back of house.

Speaker 3: These results were driven by net restaurant growth of 5.3% and continued top line strength with comparable sales of 11.6%. Reflecting positive traffic as well as higher checks.

These results were driven by net restaurant growth of five 3% and continued top line strength with comparable sales of 11, 6%, reflecting positive traffic as well as higher check.

Speaker 3: We saw a good performance in some of our largest markets, like France, Australia, the UK and Spain, as well as markets where the brand is growing more quickly, such as Japan.

We saw good performance in some of our largest markets like France, Australia, the UK and Spain, as well as markets, where the brand is growing more quickly such as Japan.

Speaker 3: We were also encouraged to see Australia join France, Germany and Spain. As the fourth international market to surpass the $1 billion system wide sales mark on a trailing 12 month base.

We were also encouraged to see Australia join France, Germany, and Spain, as the fourth international market to surpass the $1 billion system wide sales mark on a trailing 12 month basis.

Speaker 3: Our teams and master franchise partners take a guest-centric approach to everything. From menu innovation to market.

Our teams and Master franchise partners take a guest centric approach to everything for menu innovation to marketing in general we have newer restaurants overseas and as a result, more modern brand positioning with enhanced digital capabilities in both the front and back of house. These.

Speaker 3: In general, we have newer restaurants overseas and as a result, more modern brand positioning with enhanced digital capabilities in both the front and back of the house.

Josh Kobza: These capabilities also help unlock operational improvements in the business, enabling the teams to deliver an even better guest experience. Our success internationally gives us confidence to leverage key learnings as we enhance Burger King's brand positioning and its home market as well. Shifting now to Burger King in the US, comparable sales increased 8.3% year over year, and system-wide sales grew 7.9%. Our total net restaurant declined 2.2% year over year as we carry out our commitment to enhance the overall health of the system. We are making good progress on this front and have continued to see meaningful improvements in franchisee profitability. Growth this quarter was driven by thoughtful calendar initiatives focused on our flagship equity, the Whopper, as well as benefits from more effective marketing aided by enhanced marketing analytics and continued operational improvements.

Speaker 3: These capabilities also help unlock operational improvements in the business, enabling the teams to deliver an even better guest experience.

These capabilities also help unlock operational improvements in the business, enabling the teams to deliver an even better guest experience.

Speaker 3: Our success internationally gives us confidence to leverage key learnings as we enhance Burger King's Francization and at home market as well.

Our success internationally gives us confidence confidence to leverage key learnings as we enhance burger King's brand positioning in its home market as well.

Speaker 3: So shifting now to Burger King in the US, comparable sales increased 8.3% year over year, and system wide sales grew 7.9.

So shifting now to Burger King in the U S comparable sales increased eight 3% year over year and systemwide sales grew seven 9%.

Speaker 3: Our total net restaurant declined 2.2% year-over-year as we carry out our commitment to enhance the overall health of the system.

Our total net restaurants declined two 2% year over year as we carry out our commitment to enhance the overall health of the system. We are making good progress on this front and have continued to see meaningful improvements in franchisee profitability.

Speaker 3: We are making good progress on this front and have continued to see meaningful improvements in franchisee profitability.

Speaker 3: Growth this quarter was driven by thoughtful calendar initiatives, focused on our flagship equity, the Walker, as well as benefits from more effective marketing aided by enhanced marketing analytics and continued operational improvement.

Growth this quarter was driven by thoughtful calendar initiatives focus on our flagship flagship equity the Walker as well as benefits from more effective marketing aided by enhanced marketing analytics and continued operational improvements.

Josh Kobza: Our Ways to Whopper campaign reminded guests that they can have it their way and choose between one of the over 220,000 ways to build a Whopper. We layered this campaign with the Whopper Jr. Duo, our core discount initiative, and the Spider-Verse Whopper promotion, both of which were targeted towards building the next generation of Whopper lovers. These campaigns drove higher average tickets and attracted younger guests without impacting core Whopper volumes. During Q2, we spent approximately $12 million of our $150 million Fuel the Flame advertising and digital investments. These investments, coupled with our continued focus on enhancing operations, helped drive another quarter of underlying improvement in traffic, although we are still not in positive territory.

Speaker 3: Our ways to Womper Campaign reminded guests that they can have it their way and choose between one of the over 220,000 ways to build a wall.

Our ways to offer campaign reminded guests that they can have it their way and choose between one of the over 220000 ways to build the Walker.

Speaker 3: We layered this campaign with the Wapar Junior Duo, our core discount initiative, and the Spider-Ferr's Wapar Promotion, both of which were targeted towards building the next generation of Wapar Lover.

We layered this campaign with the Whopper junior duo our core discount initiative and the Spider verse Walker promotion, both of which were targeted towards building. The next generation of Walker lovers. These.

Speaker 3: These campaigns drove higher average tickets and attracted younger guests without impacting core walker volume.

These campaigns drove higher average tickets and attracted younger guests without impacting core Walker volumes.

Speaker 3: During Q2, we spent approximately $12 million of our $150 million fuel to flame advertising in digital and

During Q2, we spent approximately $12 million of our $150 million fueled the flame advertising and digital investments.

Speaker 3: These investments coupled with our continued focus on enhancing operations, help drive another quarter of underlying improvement in traffic, although we are still not in positive capital.

These investments coupled with our continued focus on enhancing operations helped drive another quarter of underlying improvement in traffic. Although we are still not in positive territory.

Josh Kobza: I'm confident that further improving operations will ultimately support growth in traffic, which is one of the most significant near-term opportunities we see for the brand. When it comes to operations, we saw another quarter of guest satisfaction improvements at BKUS, but still believe we are only in the beginning of our journey here. Tom stressed, and I fully agree, that the path towards excellent operations is continuous because the goal should always be to execute even better than you did the day before. This is at the center of everything we are doing as the BK team works with franchisees to raise our brand standards and deliver a better guest experience. Some of the ways we are achieving this are through gold standard service trainings, which have driven encouraging results, including higher Whopper product satisfaction scores.

Speaker 3: I'm confident that further improving operations will ultimately support growth and traffic, which is one of the most significant near-term opportunities we see for the brand.

I'm confident that further improving operations with will ultimately support growth in traffic, which is one of the most significant near term opportunities we see for the brand.

Speaker 3: When it comes to operations, we saw another quarter of guest satisfaction improvements at the UKUS, but still believe we are only in the beginning of our journey.

When it comes to operations, we saw another quarter of guest satisfaction improvements at BK U S. But still believe we are only at the beginning of our journey here Thomas.

Speaker 3: Thomas Dressed and I fully agree that the path towards excellent operations is continuous because the goal should always be to execute even better than you did the day before.

Thomas dressed and I fully agree that the path towards excellent operations as continuous because the goal should always be to execute even better than you did the day before.

Speaker 3: This is at the center of everything we are doing. As the BK team works with franchisees to raise our brand standards and deliver a better guess.

This is at the center of everything we are doing as the BK team works with franchisees to raise our brand standards and deliver a better guest experience.

Speaker 3: Some of the ways we are achieving this are through goal standard service trainings, which have driven encouraging results, including higher walker protection sports.

Some of the ways. We are achieving this are through gold standard service trainings, which would have driven encouraging results, including higher Walker product satisfaction scores.

Josh Kobza: Another example is the addition of guest lens visits to our franchise success system, where a restaurant is evaluated through the lens of a customer's experience, capturing some of the nuances a formal restaurant visit may miss. As part of our $250 million Royal Reset program, in Q2, we deployed $9 million towards the $50 million short-term refresh component to equip restaurants with the technology they need to deliver a great experience for both team members and guests. Participating franchisees have matched our spend dollar for dollar with investments in essential kitchen equipment like toasters and broilers, which will largely roll out in the H2. The $200 million remodel program is also underway, and we're pleased to see franchisees prioritizing quality with over 75% of committed projects locked in for full remodels or scrap and rebuilds.

Speaker 3: Another example is the addition of guest lens visits to our franchise success.

Another example is the addition of guest lens visits to our franchise success system, where our restaurant is evaluated through the lens of our customers experience capturing some of the nuances of formal restaurant visit may Miss.

Speaker 3: We're a restaurant is evaluated through the lens of a customer's experience capturing some of the nuances of formal restaurant visit may

Speaker 3: As part of our $250 million Royal Reset Program, in Q2, we deployed $9 million towards the $50 million short-term refresh component to equip restaurants with the technology they need to deliver a great experience for both team members and guests.

As part of our $250 million Royal reset program in Q2, we deployed 9 million towards the $50 million short term refresh component to equip restaurants with the technology they need to deliver a great.

Great experience for both team members and guests.

Speaker 3: Participating franchisees have matched our spend dollar for dollar with investments in essential occasion equipment like toasters and broilers which will largely roll out in the back half of the year.

Participating franchisees have matched our spend dollar for dollar with investments in a central kitchen equipment, like toasters, and broilers, which will largely rollout in the back half of the year.

Speaker 3: The $200 million remodel program is also underway. And we're pleased to see franchisees prioritizing quality with over 75% of committed projects locked in for full remodels or scraping rebuilds.

The $200 million remodel program is also underway and we're pleased to see franchisees prioritizing quality with over 75% of committed projects locked in for full remodels or scrape and rebuilds.

Josh Kobza: Q2 represented another important step towards our greater goal of driving traffic back to the system and delivering a strong value proposition for our franchisees. These early results from Reclaim the Flame and our talented team and dedicated franchisees give us confidence in the trajectory of the brand, and we look forward to continuing to execute against our plan and drive further growth this year. Turning now to Popeyes US, where Sammy and team are in the early stages of the brand's multi-year strategic plan, Easy to Love, which is coming to life through core menu extensions, operational improvements, and the development of easy-to-run kitchens. Popeyes in the US grew comparable sales 4.2% and net restaurants 5.1%, resulting in system-wide sales growth of 9.4%.

Speaker 3: Q2 represented another important step towards our greater goal of driving traffic back to the system and delivering a strong value proposition for our franchise.

Q2 represented another important step towards our greater goal of driving traffic back to the system and delivering a strong value proposition for our franchisees. These.

Speaker 3: These early results from McLean the Flame and our talented team and dedicated branch IZs give us confidence in the trajectory of the brand and we look forward to continuing to execute against our plan and drive further growth this

These early results from a claim the flame and our talented team and dedicated franchisees give us confidence in the trajectory of the brand and we look forward to continuing to execute against our plan and drive further growth this year.

Speaker 3: Turning out a Popeyes US, where a Samy and team are in the early stages of the brand's multi-year strategic plan, Easy to Love, which is coming to life through core menu extensions, operational improvements, and the development of Easy to Run.

Turning now to pop is U S, where sammy and team are in the early stages of the brand's multiyear strategic plan easy to love, which is coming to life through core menu extensions operational improvements and the development of easy to run kitchens.

Speaker 3: Popeyes in the U.S. grew comparable sales 4.2% and net restaurants 5.1%. Resulting in system wide sales growth of 9.4%.

Popeye's in the US grew comparable sales of four 2% and net restaurants, five 1%, resulting in system wide sales growth of nine 4%.

Josh Kobza: Top-line momentum was driven by the extension of our chicken sandwich platform, Ghost Pepper Wings, innovation across our beverage and dessert categories, and 22% growth in digital sales. This quarter featured the return of our blackened chicken sandwich, a delicious, lighter, unbreaded option that is well suited for the everyday occasion. We are also now giving guests the option to add bacon and cheese to all of our chicken sandwich offerings, including blackened. Outside of our core, we brought back Ghost Pepper Wings to our menu and built on dessert and beverage offerings with strawberry biscuits and mango lemonade. At our Popeyes US restaurants, team members prepare, marinate, and hand-bread our bone-in chicken to produce the Louisiana chicken guests know and love.

Speaker 3: Topline momentum was driven by the extension of our chicken sandwich platform, ghost pepper wings, innovation across our beverage and dessert categories, and 22% growth in digital sales.

Top line momentum was driven by the extension of our chicken Sandwich platform Ghost Pepper wings innovation across our beverage and dessert categories and 22% growth in digital sales.

Speaker 3: This quarter featured the return of our black and chicken sandwich, a delicious, lighter, unbredded option that is well suited for the everyday occasion.

This quarter featured the return of our black and chicken sandwich, a delicious lighter unbred adoption that is well suited for the everyday occasion.

Speaker 3: We are also now giving guest option to add bacon and cheese to all of our chicken sandwich offerings including black.

We are also now giving guests the option to add bacon and cheese to all of our chicken sandwich offerings, including blackened.

Speaker 3: Outside of our core, we brought back Ghost Pepper Wings to our menu and built on dessert and beverage offerings with strawberry biscuits and mango lemonade.

Outside of our core we brought back ghost Pepper wings to our menu and built on dessert and beverage offerings with strawberry biscuits and Mega eliminate.

Speaker 3: At our Plum Pies U.S. restaurants, team members prepare, marinate, and hen-bred our bonin chicken to produce the Louisiana chicken, guess no one loves.

At our pump is U S restaurant team members prepare marinate and hand grid, our bone in chicken to produce the Louisiana chicken guests know and love.

Josh Kobza: We are in the early stages of rolling out opportunities to make our kitchens easier to run for team members by leveraging the learnings from our international markets to help reduce back-of-house prep times and enable more consistent product execution. While we improve the capabilities of our existing restaurant base, we are also positioning the brand to capture more opportunity across North America with both existing and new top-tier operators. I'm confident that the team and priorities we have in place are pushing Popeyes forward on the right path, and we're excited to continue expanding. Finally, Firehouse Subs, which grew comparable sales 2.1% and increased system-wide sales by 5.1%. In the US, comparable sales of 2.6% included an approximately 1% negative impact from a major outage affecting our main third-party technology provider, NCR.

Speaker 3: We are in the early stages of rolling out opportunities to make our kitchens easier to run for team members by leveraging the learnings from our international markets to help reduce back-of-house prep times and enable more consistent product-experts.

We are in the early stages of rolling out opportunities to make our kitchens easier to run for team members by leveraging the learnings from our international markets to help reduce back of house prep times and enable more consistent product execution.

Speaker 3: While we improve the capabilities of our existing restaurant base, we are also positioning the brand to capture more opportunity across North America with both existing and new top-tier operators. On confidence at the team and priorities we have in place are pushing top-backs forward on the right path, and we're excited to continue with space.

While we improve the capabilities of our existing restaurant base. We are also positioning the brand to capture more opportunity across North America with both existing and new top tier operators I am confident that the team and priorities. We have in place are pushing popeye's forward on the right path and we're excited to continue expanding.

Speaker 3: Finally, fire house subs, which grew in comparable sales 2.1% and increased system-wide sales by 5.1%.

Finally, firehouse subs, which grew comparable sales two 1% and increased system wide sales by five 1%.

Speaker 3: In the US, comparable sales of 2.6 percent included an approximately 1 percent negative impact from a major outage affecting our May and Third Party technology provider NCR.

In the U S comparable sales of two 6% included an approximately 1% negative impact from a major outage affecting our main third party technology provider NCR.

Josh Kobza: This resulted in several Firehouse sales channels being down throughout April and May. We and our franchisees are disappointed by the impact of the business and slow recovery by our vendor partner, but are highly focused on improving system resilience for guests and our restaurant team members. Moving forward, one of our top priorities since adding Firehouse to the RBI family has been to position the brand for higher growth by enhancing its development capabilities. We really leaned into this key focus, outlining an exciting long-term development path for franchisees at our recent Firehouse Subs family reunion in July. It was great to spend time with nearly 300 franchisees and their families over the course of a few days in Orlando. It's clear to me that we have a passionate group of franchisees ready to realize the growth potential of the brand.

Speaker 3: This resulted in several Firehouse Sales channels being down throughout April and May.

This resulted in several firehouse sales channels being down throughout April and May we and our franchisees are disappointed by the impact of the business and slow recovery by our vendor partner, but are highly focused on improving system resilience for guests and our restaurant team members.

Speaker 3: We and our franchisees are disappointed by the impact of the business and slow recovery by our vendor partner, but are highly focused on improving system resilience for guests and our restaurant team.

Speaker 3: Moving forward, one of our top priorities since adding firehouse to the RBI family has been to position the brand for higher growth by enhancing its development capability.

Moving forward one of our top priorities since adding firehouse. The RBI family has been to position the brand for higher growth by enhancing its development capabilities, we really leaned into this key focus outlining an exciting long term development path for franchisees at our recent firehouse subs family reunion in July .

Speaker 3: We really leaned into this key focus, outlining an exciting long-term development path for franchisees at our recent Firehouse Service Family reunion in July . It was great to spend time with nearly 300 franchisees and their families over the course of a few days in Orlando.

It was great to spend time with nearly 300 franchisees and their families over the course of a few days in Orlando.

Speaker 3: It's clear to me that we have a passion group of franchisees ready to realize the gross potential of the brand.

It's clear to me that we have a passionate group of franchisees ready to realize the growth potential of the brand.

Josh Kobza: During the quarter in the US and Canada, Mike and team completed the transition from an area representative structure to a more traditional corporate and franchisee-led development model, which mirrors the framework of the rest of our brands. This quarter also marked the start of the brand's global expansion with the opening of our first overseas Firehouse location in Zurich, Switzerland. The restaurant offers guests the Firehouse menu we know and love with a reimagined guest-centric restaurant design, including 100% digital ordering, and serves as a great showcase for future international development opportunities. The team also established the Firehouse Subs Public Safety Foundation of Switzerland, modeled after our existing public safety foundations, which has surpassed $80 million of grants awarded since inception.

Speaker 3: During the quarter and the US and Canada, my team completed the transition from an area representative structure to a more traditional corporate and franchisee led development model, which mirrors the framework of the rest of our brand.

During the quarter in the U S and Canada, Mike and team completed the transition from an area representative structure to a more traditional corporate and franchisee led development model, which mirrors the framework of the rest of our brands.

Speaker 3: Discord also marked the start of the brand's global expansion, with the opening of our first overseas firehouse location in Zurich Switcher.

This quarter also marked the start of the brand's global expansion with the opening of our first overseas firehouse location in Zurich, Switzerland.

Speaker 3: The restaurant offers guests the Firehouse menu we know and love, with a reimagined guest-centric restaurant design, including 100% digital ordering, and serves as a great showcase for future international development.

The restaurant offers guests the firehouse menu, we know and love with a reimagined guest centric restaurant design, including 100% digital ordering and serves as a great showcase for future International development opportunities.

Speaker 3: The team also established the Firehouse Sub's Public Safety Foundation of Switzerland, modeled after our existing Public Safety Foundations, which has surpassed $80 million of grants awarded since.

The team also established the firehouse subs public safety foundational, Switzerland modeled after our existing public safety foundations, which has surpassed $80 million of grants awarded since inception.

Josh Kobza: Lastly, we were pleased to announce a long-term development agreement in Mexico recently and are working hard to bring this iconic brand to even more countries all around the world. With that, I'll turn it over to Matt to discuss our financial results for the quarter.

Speaker 3: Lastly, we're pleased to announce the long-term development agreement in Mexico recently, and are working hard to bring this iconic brand to even more countries all around.

Lastly, we were pleased to announce a long term development agreement in Mexico recently and are working hard to bring this I can't iconic brand to even more countries all around the world.

Speaker 3: With that, I'll turn it over to Matt to discuss our financial results for the quarter.

With that I'll turn it over to Matt to discuss our financial results for the quarter.

Matt Dunnigan: Thanks, Josh, and good morning, everyone. For the second quarter, our global system-wide sales grew 14% year over year. Our adjusted EBITDA grew 10.3% organically, and our adjusted EPS was up 6.6% organically. The difference between our system-wide sales growth and organic adjusted EBITDA growth this quarter was primarily due to the $12 million of Fuel the Flame investments at Burger King US. In addition, our adjusted EBITDA growth was impacted by the lapping of $5 million of net bad debt recoveries in Q2 2022 as compared to $3 million of net bad debt expense this quarter, primarily at Popeyes. As a reminder, 2022 saw quarter-to-quarter volatility in bad debt, including nearly $6 million of net bad debt expense in Q3 2022, which primarily impacted our Burger King segment. Now turning to G&A.

Speaker 3: Thanks, Josh, and good morning, everyone. For the second quarter, our global system-wide sales grew 14% year-vier. Our Justin Evidagrude 10.3% organically. And our Justin EPS was up 6.6% organ.

Thanks, Josh and good morning, everyone for.

For the second quarter, our global system wide sales grew 14% year over year, our adjusted EBITDA grew 10, 3% organically and our adjusted EPS was up six 6% organically.

Speaker 3: The difference between our system-wide sales growth and organic adjusted EBITDAGRA at this quarter was primarily due to the $12 million of fuel to flame investments at Burger King, US.

The difference between our system wide sales growth and organic adjusted EBITDA growth. This quarter was primarily due to the $12 million fueled fueled the flame investments at Burger King U S.

Speaker 3: In addition, our adjusted EBITDA growth was impacted by the lapping of $5 million of net bad debt recoveries in Q2 2022 as compared to $3 million of net bad debt expense this quarter, primarily at Papa.

In addition, our adjusted EBITDA growth was impacted by the lapping of $5 million of net bad debt recoveries in Q2, 2022 as compared to $3 million of net bad debt expense this quarter, primarily at Popeyes.

Speaker 3: As a reminder, 2022 sought quarter to quarter volatility in bad debt, including nearly $6 million of net bad debt expense in Q3 of 2022, which primarily impacted our Burger King second.

As a reminder, 2022 saw quarter to quarter volatility and bad debt.

Including nearly $6 million of net bad debt expense in Q3 of 2022, which primarily impacted our Burger King segment.

Speaker 3: Now, turning to GNA, we remain focused on driving solid cost discipline across the business. And so, segment GNA come in at $100 million as quarter, which is relatively flat quarter over quarter, and up approximately 3% year-to-year.

Now turning to G&A.

Matt Dunnigan: We remain focused on driving solid cost discipline across the business and saw segment G&A come in at $100 million this quarter, which was relatively flat quarter over quarter and up approximately 3% year over year. I note that the $7 million increase in segment G&A at Burger King US this quarter was partially driven by the lapping of a nearly $4 million compensation-related benefit in the prior year period. As I've mentioned on prior calls, we expect our segment G&A growth will moderate significantly in 2023 versus 2022, and have seen this come through so far this year. That said, we anticipate a modest sequential increase in the year-over-year rate of segment G&A growth, largely related to higher compensation and technology expenses in Q3.

We remain focused on driving solid cost discipline across the business and saw segment G&A come in at $100 million this quarter, which was relatively flat quarter over quarter and up approximately 3% year over year.

Speaker 3: I note that the $7 million increase in segment GNA of Burger King US this quarter was partially driven by the lapping of a nearly $4 million compensation related benefit in the prior year period.

I'd note that the $7 million increase in segment G&A at Burger King U S. This quarter was partially driven by the lapping of a nearly $4 million compensation related benefit in the prior year period.

Speaker 3: As I've mentioned on prior calls, we expect our second GNA growth will moderate significantly in 2023 versus 22. And I've seen this come through so far this year.

As I've mentioned on prior calls we expect our segment G&A growth will moderate significantly in 2023 versus <unk> 22, and have seen this come through so far this year.

Speaker 3: That said, we anticipate a modest sequential increase in the year-to-year rate of segment gene agro, largely related to higher compensation and technology expenses in the third quarter.

That said, we anticipate a modest sequential increase in the year over year rate of segment G&A growth.

Largely related to higher compensation and technology expenses.

In the third quarter.

Matt Dunnigan: Shifting to EPS, our Q2 adjusted earnings per share was $0.85 compared to $0.82 last year, representing an organic increase of 6.6% year-over-year, excluding an FX headwind of about 3% or $0.03 per share. Our adjusted EPS also included a headwind of $0.02 per share from our Burger King US Fuel the Flame investment, which was offset by $0.03 per share net benefit related to discrete non-cash tax items. Our adjusted net income was also impacted by higher adjusted net interest expense of $125 million and equity-based compensation of $47 million. We continue to expect 2023 equity-based compensation to be between $190 million and $200 million. Turning to cash flow and capital allocation.

Speaker 3: Shifting to EPS, our second quarter adjusted earnings per share was 85 cents compared to 82 cents last year, representing an organic increase of 6.6 percent year of a year, excluding an FX headwind of about 3 percent or 3 cents per share.

Shifting to EPS, our second quarter adjusted earnings per share was <unk> 85.

Compared to 82 last year, representing an organic increase of six 6% year over year, excluding an FX headwind.

Of about 3% or <unk> <unk> per share.

Speaker 3: Our adjusted EPS also included a headwind of 2 cents per share from our Burger King US fuel deployment.

Our adjusted EPS also included a headwind of <unk> <unk> per share from our Burger King U S. Fueled the flame investment, which was offset by <unk> <unk> per share net benefit related to discrete non cash tax items.

Speaker 3: which was offset by three cents per share net benefit related to discrete non-cash tax.

Speaker 3: Our adjusted net income was also impacted by higher adjusted net interest expense of $125 million and equity-based compensation of $47 million.

Our adjusted net income was also impacted by higher adjusted net interest expense of $125 million and equity based compensation of $47 million. We continue to expect 2023 equity based compensation to be between 190 and $200 million.

Speaker 3: We continue to expect 2023 equity-based compensation to be between $190 and $200 million. Turn it.

Turning to cash flow and capital allocation during the quarter, we generated over $360 million of free cash flow.

Matt Dunnigan: During the quarter, we generated over $360 million of free cash flow. Our cash flow this quarter was impacted by $22 million of Reclaim the Flame investments at BKUS, which included about $12 million toward Fuel the Flame and $11 million toward Royal Reset. In addition, we saw higher cash interest as a result of increased market interest rates. As I mentioned last quarter, although effectively 80% of our debt is locked in at fixed rates over the next 5 years, our free cash flow metric does not reflect the benefit of both the interest rate and FX hedges we have in place, which were a positive cash benefit of over $45 million in Q2.

Speaker 3: During the quarter we generated over $360 million of pre-cash.

Speaker 3: Our cashflow this quarter was impacted by $22 million of reclaim the flame investments at BKUS, which included about $12 million toward fuel the flame, and $11 million.

Our cash flow this quarter was impacted by $22 million of reclaim the flame investments at BK U S, which included about $12 million.

Toward fueled the flame and.

An $11 million toward Royal reset.

Speaker 3: In addition, we saw higher cash interest as a result of increased market interest.

In addition, we saw higher cash interest as a result of increased market interest rates.

Speaker 3: As I mentioned last quarter, although effectively 80% of our debt is locked in at fixed rates over the next five years, our free cash limit rate does not reflect the benefit of both the interest rate and FX hedges we have in place, which were a positive cash benefit of over $45 million in Qt.

As I mentioned last quarter, although effectively 80% of our debt is locked in at fixed rates over the next five years, our free cash flow metric does not reflect the benefit of both the interest rate and FX hedges, we have in place, which were a positive cash benefit of over $45 million in Q2.

Matt Dunnigan: We also returned $249 million of capital to shareholders through our dividend, which we declared for Q3 at $0.55 per common share and unit, with a 2023 full year target of $2.20 per share. We ended the quarter with available liquidity of approximately $2.2 billion, including $1.2 billion of cash, and our adjusted EBITDA net leverage ratio was 4.9 times, with a clear path to reach our target of the mid-4x level ahead of schedule. With that, I'll hand it over to Patrick for some additional thoughts on the business.

Speaker 3: We also return $249 million of capital to shareholders through our dividend, which we declared for Q3 at $0.55 per common sharing unit, with a $2,023 full-year target of $2.20 per share.

We also returned $249 million of capital to shareholders through our dividend, which we declared for Q3 at <unk> 55 per common share and unit with a 2023 full year target of $2 20 per share.

Speaker 3: We ended the quarter with available liquidity of approximately $2.2 billion, including 1.2 billion of cash, and our adjusted EBITDA net leverage ratio was 4.9 times, with a clear path to reach our target of the mid-4x level ahead of schedule. With that, I'll hand it over to Patrick.

We ended the quarter with available liquidity of approximately $2 2 billion.

Including $1 2 billion of cash and our adjusted EBITDA net leverage ratio was four nine times with a clear path to reach our target of the mid <unk> level ahead of schedule.

With that I'll hand, it over to Patrick for some additional thoughts on the business.

Patrick Doyle: Thanks, Matt, and thank you all for joining us this morning. I've now been with RBI for nine months. It's been amazing to get to know so many leaders that are doing exceptional things among our franchisees and on our brand teams. When we had our investor event in New York in February, I told you all that I still had the benefit of being new and bringing an outside perspective to the business. I've been here long enough now that I'm starting to know a little. A big part of my role as executive chairman is to represent the interests of all of our shareholders, and that starts with giving you direct insight into how the businesses are performing and what I see as their opportunities. Broadly, the businesses performed very well in Q2. Same-store sales came in just under 10%.

Speaker 5: Thanks, Matt, and thank you all for joining us this morning. I've now been with RBI for nine months. It's been amazing to get to know so many leaders that are doing exceptional things amongst our franchisees and on our brand teams. When we had our investor event in New York in February , I told you all that I still had the benefit of being new and bringing an outside perspective to the business.

Thanks, Matt and thank you all for joining us this morning.

<unk> been with RBI for nine months, it's been amazing to get to know so many leaders that are doing exceptional things amongst our franchisees and our brand teams when.

When we had our investor events in New York in February I told you all that I still had the benefit of being new and bringing an outside perspective to the business.

Speaker 5: I've been here long enough now that I'm starting to know a little. A big part of my role as executive chairman is to represent the interests of all of our shareholders. And that starts with giving you direct insight into how the businesses are performing and what I see as their opportunity.

Been here long enough now that I'm starting to Noah level.

Big part of my role as executive Chairman is to represent the interests of all of our shareholders and that starts with giving you direct insight into how the businesses are performing and what I see is there are opportunities.

Speaker 3: Broadly, the businesses performed very well in the second quarter. Same-store sales came in just under 10 percent. System-wide sales growth was 14 percent adjusted. EBITDA, the RBI level, was up 10 percent organically, and our franchisees average profits were up even more than that. And most of our brand metrics are moving in the right direction, reflecting brand strength, improving operations by our franchisees, and good marketing efforts from our brand teams. I'd put the quarter solidly.

Broadly the businesses performed very well in the second quarter same store sales came in just under 10% system wide sales growth was 14% adjusted EBITDA at the RBI level was up 10% organically and our franchisees average profits were up even more than that and most of our.

Patrick Doyle: System-wide sales growth was 14%. Adjusted EBITDA at the RBI level was up 10% organically, and our franchisees' average profits were up even more than that. Most of our brand metrics are moving in the right direction, reflecting brand strength, improving operations by our franchisees, and good marketing efforts from our brand teams. I'd put the quarter solidly in the win column. We also still have lots of opportunities. Net store growth was solid, but not what we aspire to. That said, as restaurant-level profitability continues to improve, I'm confident that will accelerate. Tim Hortons and our brands' international businesses both had a very nice mix of order growth and ticket growth. Growth in our home markets for Burger King, Popeyes, and Firehouse were all ticket, with order counts flat to slightly negative.

<unk> metrics are moving in the right direction, reflecting brand strength improving operations by our franchisees and good marketing efforts from our brand teams I'd put the quarter solidly in the win column.

Speaker 3: But we also still have lots of opportunities. Net store growth was solid, but not what we aspire to. That said, as restaurant level profitability continues to improve, I'm confident that will accelerate.

We also still have lots of opportunities net store growth was solid but not what we aspire to that said as restaurant level profitability continues to improve.

<unk> that will accelerate.

Speaker 3: Tim Hortons and our brand's international businesses both had a very nice mix of order growth and ticket growth. But growth in our home markets for Burger King, Popeyes, and Firehouse, we're all ticket with order counts flat to slightly negative. Ultimately, bringing in more customers over time is the best measure of the strength of a brand. Comparisons on order counts will get easier in the second half, but we need consistent growth across each of our brands and business.

Tim Hortons and our brands International businesses, both had a very nice mix of order growth and ticket growth, but growth in our home markets for Burger King Popeye's and firehouse were all ticket with order count flat to slightly negative ultimately, bringing in more customers over time as the best measure of the strength.

Patrick Doyle: Ultimately, bringing in more customers over time is the best measure of the strength of a brand. Comparisons on order counts will get easier in the H2, but we need consistent growth across each of our brands and businesses. Finally, while we're making very good progress on store-level profitability, I want to be clear that we aren't where we need to be. The progress is good, but greatness for each of the brands requires that we generate a great return for our franchisees. We have a very clear, focused understanding of how to grow each of our businesses. If I were to distill these down for each brand's home markets, I'd say for Tim Hortons Canada, it's PM day part and broadening our beverage offering. For Burger King US, it's operations and modernization. For Popeyes US, easy, easy. For Firehouse, development.

The brand <unk>.

Comparisons on order counts will get easier in the second half, but we need consistent growth across each of our brands and businesses.

Speaker 3: And finally, while we're making very good progress on store-level profitability, I want to be clear that we aren't where we need to be. The progress is good, but greatness for each of the brands requires that we generate a great return for our franchisee.

And finally, while we are making very good progress on store level profitability I want to be clear that we aren't where we need to be the progress is good but greatness for each of the brands requires that we generate a great return for our franchisees, we have a very clear focused understanding of how to grow each of our businesses.

Speaker 3: We have a very clear focused understanding of how to grow each of our business.

Speaker 3: If I were to still be down for each brand's home markets, I'd say for Tim Hortons Canada, at PM Daypart and Broadening our beverage offering, for Burger King, US, its operations and modernization.

If I were to just still be as down for each brands' home markets I'd say for Tim Hortons, Canada PM day, part and broadening our beverage offering for.

For Burger King U S. Its operations and modernization.

Speaker 3: for Popeyes US, easy, easy, easy, and for Firehouse development. And for each brand internationally, I think the word is pretty clear. Grow, grow, grow. And for each of these, it's wrapped in constant focus on store-level profitability. Let me start first with our home markets and then turn to the rest of world opportunity.

For Popeye's U S easy easy easy and for firehouse development and for each brand internationally I think the word is pretty clear grow grow grow and for each of these it's wrapped and constant focus on store level profitability.

Patrick Doyle: For each brand internationally, I think the word is pretty clear: grow, grow. For each of these, it's wrapped in constant focus on store-level profitability. Let me start first with our home markets and then turn to the rest-of-world opportunities. At Tim Hortons in Canada, it's all about growing the PM day part and giving Canadians even more reasons to love and engage with the brand. We've made great progress improving our market share in lunch, afternoon snacking, and dinner. That's because of both new food platforms and beverage platforms that take us well beyond what originally made us famous. We also continue to win back traffic in our morning day part and ensure Tims remains Canada's most loved breakfast destination.

Let me start first with our home markets and then turn to the rest of world opportunities.

Speaker 3: At Tim Hortons in Canada, it's all about growing the PM Day part and giving Canadians even more reasons to love and engage with the brand. We've made great progress improving our market share in lunch, afternoon snacking, and dinner. And that's because of both new food platforms and beverage platforms that take us well beyond what originally made us famous.

At Tim Hortons in Canada, It's all about growing the PM day, part and giving Canadians, even more reasons to love and engage with the brand we've made great progress improving our market share in lunch afternoon, snacking and dinner and Thats because of both new food platforms and beverage platforms that take us well beyond.

What originally made us famous.

Speaker 3: We also continue to win back traffic in our morning day part and ensure Tim's remains Canada's most loved breakfast destination.

We also continue to win back traffic in our morning day part and ensure tims remains Canada's most loved breakfast destination.

Patrick Doyle: In my view, with Axel and the team's long-term plan well underway for the PM day part, coupled with our unparalleled convenience across Canada, we have a long runway of traffic and sales growth for this amazing brand. I simply can't overstate how strong Tim Hortons is in Canada and how optimistic I am about its future growth. At Burger King in the US, it's about operational execution and modernization. All the fundamental work the team and franchisees have done is paying off, led by wins in both operations and marketing. We already have our $400 million Reclaim the Flame investment being put to work, and I think that long term there is more we will consider doing, especially around digital-centric remodels as Tom and the team continue to deliver strong results and returns on our investments.

Speaker 3: In my view, with Axel and the team's long-term plan well underway for the PM Day Part, coupled with our unparalleled convenience across Canada, we have a long runway of traffic and sales growth for this amazing brand.

In my view with Axel and the team's long term plan well underway for the PM day part coupled with our unparalleled convenience across Canada, we have a long runway of traffic and sales growth for this amazing brand.

Speaker 3: I simply can't overstate how strong Tim Hortons is in Canada and how optimistic I am about its future growth.

Simply can't Overstate, how strong Tim Hortons is in Canada, and how optimistic I am about its future growth.

Speaker 3: I've Burger King in the US. It's about operational execution and modernization.

Burger King in the U S. It's about operational execution modernization all of the.

Speaker 3: All the fundamental work the team in franchisees have done is paying off, led by wins in both operations and markets.

<unk> metal work the team and franchisees have done is paying off led by wins in both operations and marketing.

Speaker 3: We already have our $400 million reclaim the flame investment being put to work. And I think that long term there is more we will consider doing, especially around digital centric remodels. As Tom and the team continue to deliver strong results and returns on our we know that we are all going through a lot of? is something new for you. That time compared to other Motors who are looking for our new developer.

We already have our $400 million reclaim the flame investment being put to work and I think that long term. There is more we will consider doing especially around digital centric remodels as Tom and the team continued to deliver strong results and returns on our investments.

Patrick Doyle: In the meantime, the team is working to grow traffic as we continue to refresh this amazing brand. At Popeyes in the U.S., we're focused on easy, making our restaurants easy to run, our food easy to crave, and our products easy to access. As part of our Easy to Love plan, we're committing to redesigning the kitchen, and we unveiled the new kitchen remodel at our franchisee convention earlier this summer. We have a handful of locations that already have this in place, and Sammy and team are working closely with franchisees to gather feedback. Simplifying our kitchens means offering our guests faster, more accurate service and taking a big load off our team members, who will be more likely to stay with the brand for longer as their overall kitchen experience is simplified. At Firehouse U.S., we just need way more people to have access to it.

Speaker 3: In the meantime, the team is working to grow traffic as we continue to refresh this amazing brand.

In the meantime, the team is working to grow traffic as we continue to refresh this amazing brand.

Speaker 3: At Domino's in the US, we're focused on easy. Making our restaurants easy to run, our food easy to crave, and our products easy to access.

At Domino's and the U S. We're focused on easy, making our restaurants easier to run our food easy to crave and our products easy to access.

Speaker 3: As part of our easy to love plan, we're committing to redesigning the kitchen, and we unveiled the new kitchen remodel at our franchisee convention earlier this summer. We have a handful of locations that already have this in place, and Sammy and team are working closely with franchisee's to gather feedback.

As part of our easy to Love plan, we're committing to redesigning the kitchen, and we unveiled the new kitchen remodel at our franchisee convention earlier. This summer we have a handful of locations that already have this in place and Sami and team are working closely with franchisees to gather feedback simplifying our kitchens means offering.

Speaker 3: Simplifying our kitchens means offering our guests faster, more accurate service, and taking a big load off our team members, who will be more likely to stay with the brand for longer as their overall kitchen experience is simplified.

Our guests faster more accurate service and taking a big load off our team members, who will be more likely to stay with the brand for longer as their overall kitchen experience is simplified.

Speaker 3: At Firehouse, U.S., we just need way more people to have access to it. You've heard me say before that I think we have absolutely the best food and beverages in QSR, including the subs at Firehouse.

At Firehouse U S. We just need way more people to have access to it you've heard me say before that I think we have absolutely the best food and beverages in <unk>, including the subs at firehouse.

Patrick Doyle: You've heard me say before that I think we have absolutely the best food and beverages in QSR, including the subs at Firehouse. Mike and team's mission is straightforward: build a lot of restaurants with a lot of quality franchisees and do it quickly. I believe you'll see a ramp-up in our home market starting in 2024. As we look to the rest of the world opportunities, the focus is on accelerating development with quality partners and generating great returns for those partners. David and the international brand teams are leveraging our best-in-class development capabilities to bring Tim's, Popeyes, and Firehouse to new markets while further growing Burger King in existing markets. We have a diverse set of well-capitalized master franchise partners, and on average, the sales and unit economics in our international markets are really good.

Speaker 3: My team's mission is straightforward. Build a lot of restaurants with a lot of quality franchisees and do it quickly. I believe you'll see a ramp up in our whole market starting in 2024.

Mike can teams mission is straightforward build a lot of restaurants with a lot of quality franchisees and do it quickly.

I believe you will see a ramp up in our home market starting in 2024.

Speaker 3: As we look to the rest of world opportunities, the focus is on accelerating development with quality partners and generating great returns for those partners.

As we look to the rest of world opportunities. The focus is on accelerating development with quality partners and generating great returns for those partners Dave.

Speaker 3: David and the international brand teams are leveraging our best in class development capabilities to bring Tim's, Popeyes and Firehouse to new markets while further growing Burger King and existing markets.

David in the International brand teams are leveraging our best in class development capabilities to bring Tim's popeye's and firehouse to new markets, while further growing Burger king in existing markets. We have a diverse set of well capitalized master franchise partners and on average the sales and unit economics in our inner.

Speaker 3: We have a diverse set of well-capitalized master franchise partners, and on average, the sales and unit economics in our international markets are really good. Between the improvements we're driving in our home markets and momentum we are seeing internationally, I am confident we will get our net restaurant growth to the 5% plus level in 2024 and beyond.

National markets are really good.

Patrick Doyle: Between the improvements we're driving in our home markets and momentum we are seeing internationally, I am confident we will get our net restaurant growth to the 5%+ level in 2024 and beyond. I remain committed to having our most important measure of success across all these areas being franchisee profitability and attractive paybacks for their ongoing investments. Each one of our brands is on track to deliver year-over-year performance improvements on this basis, and we'll share that with you in our Q4 earnings call in February. As a final comment, I'm very pleased to see the entire team's hard work paying off in our business results. It's very encouraging to see the brand teams moving the averages up and our franchisees getting more and more excited about investing their resources and time in giving customers a great experience.

Between the improvements we're driving in our home markets and momentum we are seeing internationally I am confident we will get our net restaurant growth to the 5% plus level in 2024 and beyond.

Speaker 3: I remain committed to having our most important measure of success across all these areas, being franchisee profitability and attractive paybacks for their ongoing investments.

I remain committed to having our most important measure of success across all of these areas being franchisee profitability and attractive paybacks for their ongoing investments each one of our brands is on track to deliver year over year performance improvements on this basis, and we will share that with you in our Q4 earnings call.

Speaker 3: Each one of our brands is on track to deliver year-over-year performance improvements on this basis. And we'll share that with you in our Q4 earnings call in February . As a final comment, I'm very pleased to see the entire team's hard work pain off and our business results.

In February .

As a final comment I am very pleased to see the entire team's hard work paying off and our business results.

Speaker 3: It's very encouraging. You see the brand teams moving the averages up and our franchisees getting more and more excited about investing their resources and time in giving customers a great experience. That partnership is what generates the magic in our business.

Encouraging to see the brand teams moving the average is up and our franchisees getting more and more excited about investing their resources and time and giving customers a great experience that partnership is what generates the magic in our business.

Patrick Doyle: That partnership is what generates the magic in our business. I'd like to thank everyone again for your support and for joining us this morning. Now I'll hand it back to the operator to take your questions.

Speaker 3: I'd like to thank everyone again for your support and for joining us this morning. Now I'll hand it back to the operator to take your questions.

I'd like to thank everyone again for your support and for joining US. This morning, now I'll hand, it back to the operator to take your questions.

Operator: Thank you. If you would like to ask a question, please press star followed by one on your telephone keypad. If for any reason you wish to withdraw your question, please press star followed by two. All callers will be limited to one question and one question only. Our first question comes from the line of Andrew Charles at TD Cowen. Your line is now open. Please go ahead.

Speaker 2: Thank you. If you would like to ask a question, please press start, followed by one on your telephone keypad. If for any reason you would still draw your question, please press start, followed by two. All callers will be limited to one question and one question only.

Thank you if you would like to ask a question. Please press star followed by one on your telephone keypad. If for any reason you wish to ask Joe Your question. Please press star.

All callers will be limited to one question and one question only.

Speaker 2: Our first question comes from the line of Andrew Kelp of the PD Cowin. Your line is so open, please go ahead.

Our first question comes from the line of Andrew Charles TD Cowen. Your line is now open. Please go ahead.

Andrew Charles: Great. Thank you so much. Patrick, question for you. Can you elaborate on your comment for considering more investment in Reclaim the Flame? Clearly, Burger King US has performed exceptionally well on both the sales and the franchisee profitability. I'm curious, you know, what you need to see to execute this potential second investment to continue to accelerate the turnaround there. I think we can call it a turnaround at this point, as well as, you know, just like a comment on the digital renovations, what those potentially look like. Thanks.

Speaker 6: Great, thank you so much. Patrick, question for you. Can you elaborate on your comment for considering more investments in reclaiming the flames? Chloe Bird, can you ask the forum exceptionally well on both the sales and the franchise with profitability? I'm curious, you know, what you need to see to execute this potential second investment to compete and accelerate the turnaround there. I think we can call it a turnaround at this point, as well as, you know, just a comment on the digital renovations, what those eventually looks like. you

Great. Thank you so much Patrick question for you can you elaborate on your comments for considering more investment in reclaim the flame grilling birds in the U S.

Im exceptionally well on both the sales and the franchisee profitability I'm curious what you need to see to execute this potential second invest into continue to accelerate the turnaround there.

Call It turn it off at this point.

As well.

Comment on the on the digital renovations, what those potential looks like thanks.

Patrick Doyle: Yeah, Andrew, thanks for the question. In, you know, early on in the process of doing these re-images, we're seeing very promising results from doing those re-images, lifts that we're getting in sales. It's generating a good return for us and the franchisees, but it's early. You know, what we've got to see is more results and a good return for the franchisees and for us. You know, if we become convinced that it's definitely generating what we both need to see, then we're certainly going to consider more. That's fundamentally it.

Speaker 3: Yeah, so, Amanda, thanks for the question. So, early on in the process of doing these re-images, we're seeing very promising results.

Yeah. So Andrew Thanks for the question. So early on in the process of doing these re images, we're seeing very promising results.

Speaker 3: from doing those re-images, lifts that we're getting in sales, it's generating a good return for us in the franchisees, but it's early. And so, you know, what we've got to see is more results and a good return for the franchisees and for us.

From doing those re images lifts that we're getting in sales, it's generating a good return for us and the franchisees, but it's early and so what we've got to see is more results and a good return for the franchisees and for us and if we become convinced that it's definitely <unk>.

Speaker 3: And, you know, if we become convinced that it's definitely generating what we both need to see, then we're certainly going to consider more. And that's fundamentally it.

<unk>, what we both need to see then we're certainly going to consider more and thats fundamentally yet.

Josh Kobza: Yeah. Maybe Patrick, if I can add a couple of things there. Morning, Andrew, and thank you for the question on this one. You know, I think we intentionally set up the Reclaim the Flame plan to focus on the first two years here on 2023 and 2024. I think the goal, as Patrick said, was to prove out that we can generate both compelling and consistent returns through remodels. We're just a little bit into that experience. It's a small sample size so far, but I think we're accomplishing both of those goals. I want to see us do that at larger scale now over the next year or two.

Speaker 4: Yeah, maybe Patrick, if I can add a couple of things there, more in your interest. Thank you for the question, this one.

Maybe Patrick if I can add a couple of things there morning, Andrew and thank you for the question. This one I think we.

Speaker 4: You know, I think we intentionally set up the, the flame the flame plan to focus on the first two years, you're on 2023 and 2024. And I think the goal that Patrick said was to prove out that we can generate both compelling and consistent returns through remodels. And we're just a little bit into that experience. It's a small sample size so far, but I think we're accomplishing both of those goals. And I want to see us do that at larger scale now, over the next year or two.

We intentionally set up the claim the flame plan to focus on the first two years here on 2023, and 2024 and I think the goal as Patrick said was to prove out that we can generate both compelling and consistent returns through remodels and we're just a little bit into that experience. It's a small sample size, so far but I think we're accomplishing both of.

Those goals and I want to see us do that at larger scale no now over the next year or two but in the longer term I think our point of view is we need pretty much every burger king all across the country to be modern convenient and competitive with the with all of the other concepts out there that have new and modern buildings. So.

Josh Kobza: In the longer term, you know, I think our point of view is we need pretty much every Burger King all across the country to be modern, convenient, and competitive with all of the other concepts out there that have new and modern buildings. I do think we need to go farther in the subsequent years, and it's important we really prove out the kind of early returns here now. I think if I can maybe take a piece on the modern and digitally enabled restaurants, you know, I think there's a couple of different ways that we can do that. One of the ones we've been focused on recently is we're spending a bit more time on kiosks.

Speaker 4: But in the longer term, I think our point of view is we need pretty much every Burger King all across the country to be modern, convenient and competitive with all of the other concepts out there that have new and modern buildings. So I do think we need to go farther in the subsequent years and it's important we really prove out the early returns here now.

I do think we need to go farther in the subsequent years and as importantly, really prove out the kind of the early returns here now.

Speaker 4: And I think if I can maybe take a piece on the modern and digitally enabled restaurant.

If I can maybe take a piece.

The on the modern and digitally enabled restaurants.

Speaker 4: I think there's a couple of different ways that we can do that. One of the ones we've been focused on recently is we're spending a bit more time on Kiyos. We've done another pretty big test here in our company restaurants. And we're seeing a much better guest reception to Kiyos than we might have seen five to seven years ago in the US. So we think that's an interesting avenue to explore further. And Tom and the team are gonna be expanding some of that testing over the rest of this year.

There's a couple of different ways that we can do that one of the ones. We've been focused on recently is we're spending a bit more time on kiosks.

Josh Kobza: We've done another pretty big test here in our company restaurants, and we're seeing a much better guest reception to kiosks than we might have seen, say, 5 to 7 years ago in the US. We think that's an interesting avenue to explore further. Tom and the team are gonna be expanding some of that testing over the rest of this year.

Done another pretty big test here in our company restaurants.

And we're seeing a much better guest reception to kiosk than we might've seen say five years to seven years ago in the U S. So we think Thats an interesting avenue to explore further and Tom and the team are going to be expanding some of that testing over the rest of this year.

Patrick Doyle: I also need to point out, it was just pointed out to me by a few people that I said Domino's during the script instead of Popeyes. I'm sending Russell $20 by Venmo to fix that. Sorry about that.

Speaker 3: Now if I need to point out, it was just pointed out to me by a few people that I said dominoes. During the script, instead of Popeyes, I'm sending Russell $20 by Venmo to fix that. Sorry about that.

I also need to point out it was just pointed out to me by a few people that I said dominoes during the script incentive popeye's I'm, sending russell $20 by venmo to fix that.

Sorry about that.

[laughter].

Operator: We can take the next question, please, Candice. Thank you. Thank you. Our next question comes from Brian Bittner of Oppenheimer. Your lines are open. Please go ahead.

We can take the next question. Please thank you.

Speaker 2: Thank you. Our next question comes from Brian Bittner of Open Eye Nema. Your lines are open. Please go ahead.

Thank you. Our next question comes from Brian Bittner of benign Ma'am. Your line is open. Please go ahead.

Brian Bittner: Thanks. Thank you. Good morning. I thought I heard that, Patrick. Just you confirmed it.

Speaker 7: Thank you, good morning. I thought I heard that Patrick, just you can put it out. So Patrick, you suggested that unit growth.

Thank you good morning, I thought I heard that Patrick.

Patrick Doyle: Oops.

You can plan.

So.

Brian Bittner: Patrick, you suggested that unit growth could reach the 5%+ level in 2024. I think that's a pretty important comment, and I think you'd have to see a pretty measurable acceleration in Burger King to get there, just given its size and given its contribution to RBI's unit growth. What do you anticipate to drive this implied acceleration in the Burger King business moving past this year? Separately, Matt, just as it relates to 2023, do you still anticipate 2023 unit growth to accelerate versus 2022, or has that changed?

Thanks.

You suggested.

That unit growth.

Speaker 7: could reach the 5% plus level in 2024. God, I think that's an...

Could reach the 5% plus level in 2020 form I think thats pretty.

Speaker 7: pretty important comment. And I think you have to see a pretty measurable acceleration in Burger King to get there just given its size and given its contribution to RBI's unit growth.

Pretty important comment in half.

I have to see a pretty measurable acceleration in Burger King to get there just given its size and given its contribution to Rbis unit growth what do you anticipate to drive this.

Speaker 7: What do you anticipate to drive this in quiet acceleration and the Burger King business moving past this year and separately Matt just as it relates to 2023, do you still anticipate 2023 unit growth to accelerate verse 22 or is that change?

<unk> acceleration in the Burger King business moving past this year and separately, Matt just as it relates to 2023 do you still anticipate 2023 unit growth to accelerate <unk> 22 or has that changed.

Patrick Doyle: Yeah, Brian, thanks for the question. You know, there are really just a few things. I mean, first of all, if you look at the closures that we've talked to you about on Burger King in the US, as that picture improves in the US, you've already got, you know, half a point to, you know, pushing a point of improvement from that. You know, we're already, you know, a bit over 4% if you just eliminate over time any reduction in net stores in Burger King in the US. The math says you're now in about the 5% range.

Speaker 3: Yet so, Brian , thanks for the question. So, you know, there are really just a few things. I mean, first of all, if you look at the closures that we've talked to you about on Burger King in the US, as that picture...

Yes so.

Brian Thanks for thanks for the question so.

Really just a few things I mean first of all if you. If you look at the closures that we've talked to you about on Burger King in the U S.

As that picture improve.

Speaker 3: in the US, you've already got half a point to push an appointment of improvement from that. So we're already a bit over 4%, if you just eliminate over time any reduction in net stores in Burger King in the US. The math says you're now in about the...

In the U S. You've already got half a point.

Pushing a point of improvement from that so we're already a bit over 4%. If you just eliminate.

But over time any any reduction in net stores in Burger King in the U S.

Matt says you are now in about the five range.

Patrick Doyle: You know, and then if you look at what I think is pretty extraordinary story within all of this, you know, if you look at the net restaurant growth in the rest of the world, for the other concepts, you know, you've still got rest of the world growth north of 5% for BK in the rest of the world, but you're at 24% on Tim Hortons, 27% on Popeyes, 48% on Firehouse. Those are big businesses, and as they continue to scale, plus hopefully getting some incremental growth from Firehouse in the US and from Tim Hortons in the US, I mean, the picture says, you know, that 5% starts looking very, very doable.

Speaker 3: And, you know, and then if you look at, well, I think it's pretty extraordinary story within all of them.

And then if you look at.

Well I think it's pretty extraordinary story within all of this.

Speaker 3: You know if you look at the net restaurant growth in the rest of the world

If you look at the net restaurant growth in the rest of the world.

Speaker 3: for the other concepts. You know, you've still got rest of the world growth north of 5% for BK in the rest of the world, but you're at...

For the other concepts.

You've still got rest of the world growth north of 5% for BK in the rest of the world, but youre at <unk>.

Speaker 3: 24% on Tim Horton's, 27% on Popeye's, 48% on...

24% on Tim Hortons, 27% on Popeye's.

48% on fire House.

Speaker 3: Those are big businesses and as they continue to scale, plus hopefully getting some incremental growth from Firehouse in the US and from Tim Hortons in the US. I mean, it just, the picture says, you know, that 5% starts looking very, very dual.

Those are big businesses and as they continue to scale plus.

Plus hopefully getting some incremental growth from fire house in the U S and from Tim Hortons in the U S. I mean, it just the picture says.

That 5% starts looking very very doable.

Josh Kobza: Yeah. Brian, I'll just take the other piece of your questions, Josh. Yes, we do still expect 2023 growth to be higher than 2022 for restaurants.

Speaker 4: Brian , I'll just take the other piece of your questions, Josh. Yes, we do still expect 2023 growth to be higher than 2022 for restaurants.

Yeah, Brian I'll, just take the other piece of your questions Josh.

Yes, we do still expect 2023 growth to be higher than 2022 for restaurants.

Brian Bittner: Thank you.

Thank you.

Operator: Thank you. Our next question comes from the line of David Palmer of Evercore. Your lines are open. Please go ahead.

Thank you.

Speaker 2: Next on that question comes from the line of David Palmer of Evocall. The line's open. Please go ahead.

Our next question comes from the line of David Palmer of Evercore. Your line is now open. Please go ahead.

David Palmer: Thanks. Patrick, you mentioned getting back to 5% unit growth in 2024 and beyond. I know it's ancient history now, but there was an Analyst Day back in 2019, where the company talked about 5% unit growth, 2% to 3% same-store sales growth, 7% system sales growth, and mid- to high-single-digit EBITDA growth. I'm wondering how you all feel about that full slate of targets as you look to the next few years. You know, what are the key variables, areas of upside, downside as you think about those targets, and are they relevant? Thanks.

Speaker 8: Thanks. Patrick, you mentioned getting back to 5% unit growth in 2024 and beyond. And I know it's ancient history now, but there was an analyst day back in 2019 and where you talked about where the company talked about 5% unit growth, 2 to 3% seems for sales growth, 7% system sales growth, and mid to high single digit EBITDA growth. I'm wondering how...

Thanks, Patrick.

Patrick you mentioned getting back to 5% unit growth in 2024, and beyond and I know, it's ancient history now, but there was an analyst day back in 2019, where you talked about where the company talked about 5% unit growth, 2% to 3% same store sales growth, 7% systems system sales growth and mid to high single.

Digit.

EBITDA growth I'm wondering how.

Speaker 7: You all feel about that full slate of targets as you look to the next few years. What are the key variables, areas of upside-down side, as you think about those targets, and are they relevant? Thanks.

You all feel about that full slate of targets as you look to the next few years what are the key variables areas of upside downside as you think about that.

Those targets are they relevant thanks.

Patrick Doyle: Well, I'd say a couple things and I'll kick it to Josh since Josh was actually here in 2019 when that was said. Yeah, look, I think the biggest thing that's changed is inflation. I think when we said 2% to 3% comps, you know, we were probably expecting 1% inflation. Clearly, ticket growth has been higher as a result of overall inflation levels around the world over the last, you know, year or 18 months. You know, that has clearly changed from where we were. From a store growth standpoint, you know, I think it's very much on.

Speaker 3: well i i'd say a couple things and i'll kick it to uh... to josh since um... josh was actually here in twenty nineteen when that was said um... but yeah i did look i think the biggest thing that's changed is uh... is inflation i think when we said two to three percent comp

Well.

Say, a couple of things and I'll kick it to Josh since Josh was actually here in 2019 when that was said.

But yes look I think the biggest thing thats changed is.

As inflation I think when we said 2% to 3% comps.

Speaker 3: We were probably expecting 1% inflation and clearly ticket growth has been higher as a result of overall inflation levels around the world over the last year or 18 months. So that has clearly changed from where we were. But from a store growth standpoint, I think it's very much on. And as I just...

We were probably expecting 1% inflation and clearly tick.

Ticket growth has been.

Higher as a result of overall inflation levels around the world over the last.

Year or 18 months so.

That has.

Clearly changed from from where we were but from a.

Our store growth standpoint, I think it's very much on and as I just.

Patrick Doyle: As I just, you know, said to Brian, I mean, you know, you work through the math and, you know, 5%+ certainly looks very doable. I think we had put out a 40,000 restaurant target over the course of, I don't know, I think it was four or five years. You look at that and it certainly looks very doable.

Speaker 3: you know said to Brian I mean you know you work through the math and you know five percent

Brian I mean, you work through the math.

Yes.

5% plus.

Speaker 3: certainly looks very doable. I think we had put out a 40,000 restaurant target over the course of, I don't know, I think it was four or five years and you look at that and it certainly looks very, very doable.

Certainly looks very doable I think we had put out a 40000 restaurants target over the course of.

And I think it was four or five years and you look at that and it certainly looks very very doable.

Josh Kobza: Yeah. Dave, I would just reiterate what Patrick said, and I think we need to see how inflation evolves over the rest of this year and what the outlook is into next year. I think maybe once we get to the end of this year, we can have a little bit more normalized view on what we think some of those growth statistics look like going forward.

Yes, David I would just reiterate what what Patrick said and I think we need to see how inflation evolves over the rest of this year and what the outlook is into next year and I think maybe once we get to the end of this year, we can have a little bit more normalized view on what we think some of those some of those growth statistics look like going forward.

Speaker 4: Yeah, Dave, I would just reiterate what Patrick said. And I think we need to see how inflation involves over the rest of this year and what the outlook is into next year. And I think maybe once we get to the end of this year, we can have a little bit more normalized view on what we think some of those gross statistics look like.

Operator: Our next question comes from the line of Dennis Geiger of UBS. Your line is now open. Please go ahead.

Speaker 2: Our next question comes from the line of Dennis Geiger of UBS, your line is open, please go ahead. Thank you.

Our next question comes from the line of Dennis Geiger of UBS. Your line is open. Please go ahead.

Dennis Geiger: Thank you, and congrats on the strong results. Wondering if you could talk a little bit more about Burger King US traffic momentum and the ability for the strategic plans to continue to drive that traffic improvement going forward. I think Josh and Patrick, you both spoke to kind of the continued improvement in operations as being a key support for the improvement in traffic trends. Just wondering if anything more there on how to think that operations improvement trajectory as well as sort of other critical drivers to continue to strengthen those traffic trends. Thank you.

Thank you and congrats on the strong results I'm wondering if you could talk a little bit more about Burger King U S traffic momentum and the ability for the strategic plans to continue to drive that traffic improvement going forward I think Josh and Patrick you. Both spoke to kind of the continued improvement in operations as being a key support for the improvement.

Speaker 9: I wonder if you could talk a little bit more about further, can U.S. traffic momentum and the ability for the strategic plans to continue to drive that traffic improvement going forward? I think Josh and Patrick, you both spoke to kind of the continued improvement in operations as being a key support for the improvement in traffic trends. So just wondering if anything more there on how to think that operations improvement trajectory as well as sort of other critical drivers to continue to strengthen those traffic trends. Thanks.

Traffic trends. So just wondering if anything more there on on how to think that operations improvement trajectory as well as sort of other critical drivers to continue to strengthen those traffic trends. Thank you.

Josh Kobza: Yeah. Dennis, thanks so much for the question. For sure, Burger King US traffic is a big focus area for us. It has been and will be into the remainder of this year. I mentioned it a little bit in the prepared remarks, but we have seen improvement sequentially in that same store traffic, so it's getting better, but it's still slightly negative. I think our goal for sure in the next couple of quarters is to turn that to flat and then positive over time. I think a couple of the big structural things that we're doing to improve that, one, we've been really focused on our advertising, both the quality of that, and as you saw in Q2, we're starting to ramp up that Fuel the Flame investment.

Speaker 4: Yeah, it does. Thanks so much for the question. And for sure, a birching US traffic is a big focus area for us. It has been and will be under the remainder of this year. I mentioned it a little bit in the prepared remarks, but we have seen improvements sequentially in that same store of traffic. So it's getting better, but it's still slightly negative.

Yes. It does thanks, so much for the question and for sure of Burger King U S. Traffic is a big focus area for us It has been and will be into the remainder of this year I mentioned it a little bit in the prepared remarks, but we have seen improvement sequentially in that same store traffic. So it's getting better but it's still slightly negative I think are.

Speaker 4: I think our goal for sure in the next couple quarters is turn that to flat and then positive over time.

For sure in the next couple of quarters, its turn that to flat and then positive over time and I think a couple of the big structural things that we're doing to improve that one we've been really focused on our advertising both the quality of that and as you saw in the second quarter, we're starting to ramp up that fueled the flame investment we haven't spent that much of it yet and we have been starting to ramp up some of it.

Speaker 4: And I think a couple of the big structural things that we're doing to improve that. One, we've been really focused on our advertising both the quality of that. And as you saw on the second quarter, we're starting to ramp up that fuel the flame investment. We haven't spent that much, but yet. We've been starting to ramp up some of that spending. So some of those advertising dollars are definitely an important element there.

Josh Kobza: We haven't spent that much of it yet. We've been starting to ramp up some of that spending. Some of those advertising dollars are definitely an important element there. We're also extremely focused on operations and on how we deliver in the restaurants every day is what brings the guests back more often. Tom and the team have really put a lot of effort into training at the restaurants, especially around producing incredible Whoppers every day, every time. You've seen us focused a lot on Whopper Jr., Spider-Verse Whopper. We're really trying to make sure that the product we deliver every day is excellent and brings back our guests. You haven't seen this too much yet, but you'll see more and more of the remodels.

That spending so some of those advertising dollars are definitely important element. There. We're also extremely focused on operations and how we deliver and the restaurants. Every day is what brings the guests back more often and the Tom and the team have really put a lot of effort into training at the restaurants.

Speaker 4: We're also extremely focused on operations and of how we deliver in the restaurants every day is what brings the guests back more often.

Speaker 4: and the top of the team have really put a lot of effort into training at the restaurant.

Speaker 4: especially around producing incredibly, incredible wafers every day, every time. And you see, you know, it's focused a lot on wafers, wafers, junior, spider versus wafers. So we're really trying to make sure that the product we delivered every day is excellent and bring back our guests.

Especially around producing incredibly incredible whoppers everyday every time and you've seen us focused a lot in whopper Whopper junior Spider verse Whopper. So we're really trying to make sure that the product we deliver everyday is excellent and bring back our guests and then you haven't seen this too much yet, but youll see more and more.

Speaker 4: And then you haven't seen this too much yet, but you'll see more and more.

Speaker 4: of the remodels. We're gonna do really high quality remodels investing the proper dollars into those. And I think you should see that kind of becoming an increasingly important part of the equation later this year and into next year. So those are some of the big factors that I think are helpful to us to turn around the traffic equation. Yep, so Patrick, anything you wanna add there? You're good, perfect.

Josh Kobza: We're gonna do really high quality remodels, investing the proper dollars into those. I think you should see that kind of become an increasingly important part of the equation later this year and into next year. Those are some of the big factors that I think are helpful to us to turn around the traffic equation. Yep. Patrick, anything you wanna add there?

Of the Remodels.

We're going to do really high quality remodels investing the proper dollars into those and I think you should see that kind of becoming an increasingly important part of the equation later this year and into next year. So those are some of the big factors that I think are.

Helpful to us to turnaround the traffic equation.

Yes, anything you want to add there.

Matt Dunnigan: Nope. We're good.

Josh Kobza: Perfect.

Perfect.

Operator: Our next question comes from the line of Brian Harbour of Morgan Stanley. Your line is now open. Please go ahead.

Speaker 2: Our next question comes in the line of Brian Harbour of Morgan Stanley , your line is open. Please go ahead.

Our next question comes from the line of Brian <unk> of Morgan Stanley . Your line is now open. Please go ahead.

Brian Harbour: Yeah. Thanks. Good morning. Maybe I'll ask about Tim Hortons in Canada. You quantified, you know, some of the initiatives certainly and how they're working, but could you kind of separate out, you know, how much has still been kind of mobility driven? Do you think that we're mostly past the mobility recovery at this point? And then just also on the supply chain there, I know in the past we've talked about, you know, working through some of that higher cost inventory. Are you mostly past that at this point where we'll start to see more normalized kind of supply chain profits?

Speaker 10: Yes, thanks, good morning. Maybe I'll ask about Tim Hortons in Canada.

Yes. Thanks, Good morning, maybe I'll ask about Tim Hortons in Canada.

Speaker 10: You quantify some of the initiatives, certainly, and how they're working, but could you kind of separate out how much has still been kind of mobility driven? Do you think that we're mostly past the mobility recovery at this point? And then just also on the supply chain there, I know in the past we've talked about working through some of that higher cost inventory. Are you mostly past that at this point where we'll start to see more normalized supply chain products?

You quantified some of the initiatives certainly and how they're working but could you could you kind of separate out how much is still been kind of mobility driven do you think that we're mostly past the mobility of recovery at this point and then just also on the supply chain. There I know in the past we've talked about.

Working through some of that higher cost inventory or are you mostly past that at this point, where we will we will start to see more normalized kind of supply chain profits.

Josh Kobza: Yeah. Brian, thanks for the question. I'll take the part on the same store sales kind of composition and some of the drivers there, and I'll let Matt take the one on supply chain. In terms of what drove the performance, there's a little bit of mobility benefit, but I think that started to level out a lot. What we see from Q1 to Q2 is relatively stable. So I think we're back to a little bit more normalized world there and where it's not changing so much quarter to quarter. You know, I really think the bigger drivers of what we saw in this quarter are a lot of the big initiatives that we have on where we're taking the business. So you saw things like cold beverage was a really big contributor.

Speaker 4: Yeah, Brian , thanks for the question. I'll take the part on the same source sales kind of composition some of the drivers there, and I'll let Matt take the one on supply chain. In terms of what drove the performance, there's a little bit of mobility benefit, but I think that started to level out a lot. What we see from Q1 to Q2 is...

Yes, Brian Thanks for the question I'll take the part on the on the same store sales.

Competition some of the drivers there and I'll, let Matt take the one on supply chain in terms of what drove the performance. There is a little bit of mobility benefit, but I think that started to level out a lot. What we see from Q1 to Q2 is relatively stable. So I think we're back to a little bit more normalized world, there and where it's not changing so much quarter to quarter.

Speaker 4: relatively stable. So I think we're back to a little bit more normalized world there and where it's not changing so much quarter to quarter. I really think the bigger drivers of what we saw in this quarter are a lot of the big initiatives that we have on where we're taking the business.

I really think the bigger drivers of what we saw in this quarter are a lot of the big initiatives that we have on where we're taking the business. So you saw things like pull beverage was a really big contributor we've been very focused on things like venture has launched sparkling ventures, which is it's a sparkling water version of our existing venture platform.

Speaker 4: So you saw things like cold beverage, was a really big contributor. We've been very focused.

Josh Kobza: We've been very focused on things like Quenchers, launched Sparkling Quenchers, which is just a sparkling water version of our existing Quencher platform. That proved to be very incremental to the business. We've also been focused on a lot of the PM food initiatives that we've talked about with our loaded bowls and wraps. We launched the barbecue chicken version of those this quarter, which is very fitting for the summer and performed really well. You're seeing those things move our business. We're moving in market share in some of those day parts, and they're becoming a bigger mix in the business. Just one stat to give you a little bit of a reference, cold beverage used to be about 30%, if you go back about four years ago.

Speaker 4: on things like quenches, launched sparkling quenches, which is just a sparkling water version of our existing quencher platform. That proved to be very incremental to the business. We've also been focused on a lot of the PM food initiative that we've talked about with our loaded bowls and wraps. We launched the barbecue chicken version of those. This quarter, which we're fitting for the summer and performed really well.

That proved to be very incremental to the business. We've also been focused on a lot of the PM food initiative.

Initiatives that we've talked about with our loaded bowls and reps, we launched the barbecue chicken version of those this quarter, which is very fitting for the summer and performed really well and youre seeing those things move our business. So we're moving in market share in some of those day parts and they're becoming a bigger mix in the business just one once that to give you a little bit of a reference.

Speaker 4: And you're seeing those things move our business. So we're moving in market share in some of those day parts and they're becoming a bigger mix in the business.

Speaker 4: Just one one stat to give you a little bit of a reference. Cold beverage used to be about 30% when you could go back about four years ago. Now it's 40% of our mix.

Beverage used to be about 30% when you could go back about four years ago now, it's 40% of our mix. So we're starting to see pretty big movements in the composition of the business as we get traction in some of those those categories.

Josh Kobza: Now it's 40% of our mix. We're starting to see pretty big movements in the composition of the business as we get traction in some of those categories. Matt, do you wanna take the supply chain?

Speaker 4: So we're starting to see pretty big movements in the composition of the business as we get traction in some of those categories.

Matt Dunnigan: Yeah. Hey, Brian, thanks for the question. Yeah, on the supply chain, I think, you know, as you all know, we had quite a bit of volatility to work through last year into this year with higher commodity prices, you know, impacting and increasing both sales and cost of sales and therefore margin percentage. I'd say, you know, we've started to see things normalize. This quarter, you know, margins were fairly flat sequentially, at levels, you know, consistent with where we've been trending and kinda what we expected. You know, I think overall, at this stage, you know, our focus is on the underlying business, which we think is doing very well, as you heard from Patrick and Josh, and driving volumes through that business, through the strategies they talked about.

Speaker 3: Matt, you want to take this slide? Brian , thanks for the question. Yeah, on the supply chain, I think, you know, as you all know, we had quite a bit of volatility to work through last year and to this year with higher commodity prices, you know, impacting and increasing both sales and cost of sales and therefore margin percentage. I'd say, you know, we started to see things normalize. This quarter, you know, margins were fairly flat sequentially at levels, you know, consistent with where we've been trending and kind of what we expected.

Matt you want to say, yes.

Hi, Brian Thanks for the question, yes on the supply chain I think as you all know we had a quite a bit of volatility to work through last year into this year with higher commodity prices impacting and increasing both sales and cost of sales and therefore margin percentage I would say.

We start to see things normalize this quarter margins were fairly flat sequentially.

At levels, consistent with where we've been trending and kind of what we expected.

Speaker 3: And I think overall at this stage, our focus is on the underlying business, which we think is doing very well, as you heard from Patrick and Josh, and driving volumes through that business, through the strategies they talked about. And as a result, gross profit dollar growth, which was up about 7% year-to-year organically in the quarter for the business.

And I think overall at this stage our focus is on the underlying business, which we think is doing very well as you heard from Patrick and Josh and driving volumes through that business through the strategies they talked about.

Matt Dunnigan: As a result, gross, you know, gross profit dollar growth, which was up about 7% year over year organically, in the quarter for the business.

And as a result gross gross profit dollar growth, which was up about 7% year over year organically in the quarter for the business.

Operator: Our next question comes from the line of Eric Gonzalez of KeyBank. Your line is now open. Please go ahead.

Speaker 2: On that question comes from the line of Eric Gonzalez from T-bank, Killine, No Open, please go ahead.

Our next question comes from the line Eric Gonzalez Keybanc. Your line is open. Please go ahead.

Eric Gonzalez: Hey, thanks. Congrats on the progress this quarter. Maybe another one on the Burger King US business. You know, as part of Fuel the Flame, the advertising investment, it would seem like you're taking a more measured approach to deploying those resources. This is maybe a bit different than what we saw at Tim Hortons and what some of your peers have done with celebrity endorsements. I was hoping you could speak to that strategy a bit and talk about how you are building a multi-year plan to reposition the brand versus the, maybe the blasted out of the cannon strategy that we've seen elsewhere. Thanks.

Hey, Thanks, Congrats on the progress this quarter, maybe another one on the Burger King U S business part of fueled the flame advertising investment. It would seem like you are taking a more measured approach to deploying those resources.

Speaker 3: Thanks. Congrats on the progress this quarter. Maybe another one on the Birkeeing, US business. You know, part of fuel the flame, the advertising document, it would seem like you're taking a more measured approach to deploy those resources. This is maybe a bit different than what we saw at Tim Horin's and what some of your peers have done with celebrity endorsements. So, let's hope that you could speak to that strategy a bit and talk about how you are building a multi-year plan to reposition the brand versus maybe the blasted out of a canon strategy that we've seen elsewhere. Thanks.

It may be a bit different than what we saw at Tim Hortons and what some of your peers have done with celebrity endorsement. So I was hoping you could speak to that strategy a bit and talk about how you are building a multiyear plan to reposition the brand versus maybe the blasted out of a cannon strategy that we've seen elsewhere. Thanks.

Josh Kobza: Yeah, Eric, thanks for the question. I do think you characterize well that our plan is to be steady and build the business over time. Less on kind of stunts, we're really trying to focus on a lot of the core equities and building those progressively over a couple of years. We're focused a lot on the quality of the advertisements, how they resonate with guests. I think the good news is you're seeing it work in the results. The same-store sales have moved in the right direction. To your point, we've got a lot of the firepower left.

Speaker 4: Yeah Eric, thanks for the question. And I do think you characterize well that our plan is to be steady and build the business over time. Less than kind of stunts, we're really trying to focus on a lot of the core equities and building those progressively over a couple of years. We're focused a lot on the quality of the advertisements, how they resonate with guests. And I think the good news is you're seeing it work in the results, the same source sales have moved in the right direction.

Yeah, Eric Thanks for the question and I do think you characterize well that our plan is to be steady and build the business over time.

Lesson stunts, we're really trying to focus on a lot of the core equities and billing building those progressively over a couple of years.

Focus a lot on the quality of the advertising how they resonate with guests and I think the good news is you are seeing at work and the results. The same store sales have moved in the right direction.

Speaker 4: In to your point we've got a lot of the firepower left

And to your point, we've got a lot of firepower left.

Josh Kobza: You know, we've got a year and a half or so left in that initial two-year period, and we still have a lot of the dollars left to spend. We're not in a place to give an exact cadence on how we'll spend that over the next couple of years, but it will be somewhat evenly.

Speaker 3: We've got a year and a half or so left and that initial two year period and

We've got a year and a half or so left in that initial two year period and.

Speaker 3: We still have a lot of the dollars left to spend. We're not in place to give an exact cadence on how we'll spend that over the next couple of years. But it will be

We still have a lot of the dollars left to spend.

Were not in place to give a exact cadence on how we'll spend that over the next couple of years.

But it will be somewhat evenly.

Operator: Our next question comes from the line of Chris Carril of RBC Capital Markets. The line is now open. Please go ahead.

Speaker 2: Our next question comes from the line of Chris Carrell of RBC Capital Group. The line is open, please go ahead.

Our next question comes from the line of Chris <unk> of RBC Capital. Your line is now open. Please go ahead.

Chris Carril: Thanks. Good morning. Maybe just following up on the longer-term development in 2024 and beyond, can you maybe expand a bit more on the Popeyes brand in particular? You know, the net growth there for the Popeyes brand was the strongest contributor in the H1. You know, maybe with the new Easy to Love strategy in place for the brand, how are you thinking about the pacing of when the brand could be maybe a more meaningful contributor to the overall global consolidated unit growth, longer term? Thanks.

Speaker 11: Thanks, good morning. So maybe just following up on the longer term development in 24 and beyond.

Thanks. Good morning, So maybe just following up on the longer term development.

Development in 'twenty, four and beyond can you maybe expand a bit more on the popeye's brand in particular.

Speaker 11: Can you maybe expand a bit more on the Popeye's brand in particular? Yeah, the net growth there for the Popeye's brand was the strongest contributor in the first half. And, you know, maybe with a new easy to love strategy in place for the brand. How are you thinking about the pacing of when the brand to be? It may be a more meaningful contributor to the overall global consolidated unit growth. Long term. Thanks.

The net growth there for the Popeyes brand was the strongest contributor in the first half.

And maybe with a new easy to web strategy in place for the brand.

About the pacing of when the brand can be a maybe a more meaningful contributor to overall global consolidated unit growth.

Longer term thanks.

Josh Kobza: Yeah, Chris, thanks and good morning. Yeah, we are very excited about Popeyes, both the results, I would say, and the long-term development outlook. You know, I think if you look at the US business, while we are making improvements on the ease to run the kitchen, we've been growing at a really good clip, and we continue to do so. We're one of the fastest-growing freestanding drive-thru concepts out there, and we've had pretty consistent and strong growth in the US. I think what's evolving right now is the international piece of that growth. You know, if you look at it in the quarter, we're now up to 27% year-on-year growth outside of the US.

Speaker 3: Yeah, Chris, thanks and good morning. We are very excited about Popeyes. Both the results I would say and the long-term development outlook. I think if you look at the US business, while we are making improvements on the ease to run of the kitchen, we've been growing at a really good clip and we continue to do so. We're one of the fastest growing free standing drive-through concepts out there and we've had pretty consistent and strong growth in the US.

Yes, Chris Thanks.

Thanks, and good morning.

We are very excited about pop is both the result, I would say in the long term development outlook I think if you look at the U S business, while we are making improvements on the easy to run at the kitchen, we've been growing at a really good clip and we continue to do so we're one of the fastest growing freestanding drive thru concepts out there and we've.

Had pretty consistent and strong growth in the U S. I think whats evolving right now is the international piece of that growth.

Speaker 3: I think what's evolving right now is the international piece of that growth. And if you look at it in the quarter, we're now up to 27% you're on your growth outside of the U.S. So we're really starting to ramp up the pace of development in many other countries around the world. And I say that's pretty broad base.

Look at it in the quarter, we're now up to 27% year on year growth outside of the U S. So we're really starting to ramp up the pace of development in many other countries around the world and I'd say, that's pretty broad based.

Josh Kobza: We're really starting to ramp up the pace of development in many other countries around the world. I'd say that's pretty broad-based. We're growing in places like Brazil, Spain, India, the UK, France, and Canada. It's all over, and we're really starting to get a lot of traction. Some of those markets are starting to get to scale, and we're seeing really good results in terms of the sales of those restaurants. I think that's what's started to evolve. We're getting more and more traction in more places around the world, and that's one of the reasons why we have a lot of confidence in terms of where our overall net restaurant growth is gonna go in 2024 and beyond.

Speaker 3: We're growing in places like Brazil, Spain, India, the UK, France, Canada. It's all over and we're really starting to get a lot of traction. Some of those markets are starting to get to scale and we're seeing really good results in terms of the sales of those restaurants.

We're growing in places like Brazil.

Spain, India, the U K, France.

Canada, it's all over and we're really starting to get a lot of traction some of those markets are starting to get to scale and we're seeing really good results in terms of the sales of those restaurants. So I think that's what started to evolve we're getting more and more traction and more places around the world and Thats one of the reasons why we have a lot of confidence in terms of where our overall.

Speaker 3: So I think that's what started to evolve. We're getting more and more traction, more places around the world. And that's one of the reasons why we have a lot of confidence in terms of where our overall net restaurant growth is gonna go in 2024. And...

All net restaurant growth is going to go in 2024 and beyond.

Patrick Doyle: The only thing I'd add to that is the numbers that Josh just gave you are the restaurant growth numbers. If you look at system-wide sales growth for the rest of world for Popeyes, we're up 47.9% year over year in Q2, lapping 38.8 the previous year. I think people have discovered that Popeyes is pretty good outside of the US.

Speaker 5: The only thing I'd add to that is the numbers that Josh just gave you are the restaurant growth numbers. If you look at system-wide sales growth for the rest of the world for Popeyes, we're up 47.9% year over year in the second quarter, lapping 38.8. The previous year, I think people have discovered that Popeyes is pretty good outside of the US.

The only thing I'd add to that is the number that Josh just gave you are the restaurant growth numbers. If you look at system wide sales growth for the rest of world for Popeye's were up 47, 9% year over year in the second quarter lapping 38 eight.

The previous year I think people have discovered that popeye's is pretty good outside of the U S. Yes.

Josh Kobza: Yeah. I think you know, if we look kind of globally at all the segments, the chicken segment is obviously very compelling around the world. It's a big segment, it's a growing segment, and we've got a concept in Popeyes that really resonates with guests all over the world, and I think you're just starting to see that show up in some of our numbers.

Speaker 3: Yeah, I think all, you know, if we look kind of globally at all the segments, the chicken segment is obviously very compelling around the world. It's a big segment, it's a growing segment. And we've got a concept in Popeyes that really resonates with guests all over the world. And I think you're just starting to see that show up in some of our now.

Yes, I think.

If we look globally at all of the segments. The chicken segment is obviously very compelling around the world to Big segment is a growing segment and we've got a concept and popeye's that really resonates with guests all over the world and I think you are just starting to see that show up in some of our numbers.

Operator: Our next question comes from the line of Sara Senatore of Bank of America. Your line is now open. Please go ahead.

Speaker 2: Our next question comes from the line of Sarah Senatal of Bank of America. Your line is open. Please go ahead.

Our next question comes from the line of Sandwich genital of Bank of America. Your line is open. Please go ahead.

Sara Senatore: Great. Thank you. Just actually, two quick follow-ups. One is about, Tims. You know, you said you maintain leading market share. I just wanted to understand, is that to say that you think the Tims business kinda grew with the industry overall? I know you compete in a lot of, day parts and segments, but, you know, as we think through kind of the benefits of mobility versus market share gains, I'm trying to decompose that. Then just on Burger King, you know, I could ask if I could maybe ask for a little bit more detail. You know, what's, I guess, the event path from here in terms of driving traffic? You know, do you need to bring more people in for trial?

Speaker 2: Great, thank you. Just actually a two quick follow-up.

Great. Thank you.

Two quick follow ups. One is about Tim you said, you've maintained leading market share I just wanted to understand is that to say that it.

Speaker 2: One is about Tim's, you know, you said you maintain leading market share. I just wanted to understand, is that to say that you think the Tim's business kind of grew with the industry overall? I know you compete in a lot of day parts and segments, but as we think through kind of the benefits of mobility versus market share gains, I'm trying to decompose that. And then...

Ken This business grew with the industry elsewhere I know you compete in a lot of data.

<unk> parts and segments, but yes, we think so youre kind of there.

Benefits of mobility versus market share gains in China decompose that and then just on Burger King.

Speaker 2: I'm burgeoning. I could US if I could maybe ask for a little bit more detail. What's the event path from here in terms of driving traffic? Do you need to bring more people in for trial? You're improving operations so that it's just about frequency or bringing in laps. Just trying to understand the drivers and how we should think about it with the recognition that compares to East and the back half. Thanks.

You asked if I could.

For a little bit more detail whats I guess the event paths from here in terms of <unk>.

<unk> traffic.

Need to bring more people in for trial.

Sara Senatore: I know you're improving operations so that it's just about bringing frequency or bringing in lapsed guests. Just trying to understand, you know, the drivers and how we should think about it with the recognition that comps ease in the back half. Thanks.

Improving operations is that it's just about <unk>.

Frequency or bringing lapsed guests.

I understand.

The drivers and how we should think about it with the recognition that comparison in the back half. Thanks.

Josh Kobza: Yeah. Good morning, Sara. On Tims, I would say we in the aggregate are growing faster than the market. We're gaining market share. What I referenced in terms of maintaining market share is more in our some of our core kind of legacy categories, things like breakfast food and our hot brewed coffee. But on top of that, we're gaining market share in some of those higher growth categories that we've been focused on, things like cold beverages and PM food. Those are the dynamics of some of the things we're maintaining market share and growing market share, but in the aggregate, we think we're growing faster than the market.

Yes, good morning, Sarah.

On Tims I would say we had in the aggregate are growing faster than the market, we're gaining market share and what I referenced in terms of maintaining market share is more than some of our core kind of legacy categories.

Speaker 3: You know, I would say we in the aggregate are growing faster than the market we're gaining market share. And what I referenced in terms of maintaining market share is more in some of our core kind of legacy categories, things like breakfast, food, and our hot period coffee. But on top of that, we're gaining market share in some of those higher growth categories that we've been focused on, things like cold beverages and PM food. So those are the dynamics of some of the things where we're maintaining market share and growing market share, but in the aggregate, we think we're growing faster than the market. Has that caused somebody to get highs of circumstances where everybody's low will increase block rate? Does that offer answers to you? Tell me if you feel like that's resolved. Definitely what we have. We have it fixed a short time-time Traveller who is fine as you are in this locally well-rounded experience. Thisually settle the attention of one person all night,

Things like breakfast food and our heartbeat coffee, but on top of that we're gaining market share in some of those higher growth categories that we've been focused on things like cold beverages and PM food. So those are the dynamics of some of the things we are maintaining market share and growing market share, but in the aggregate, we think we're growing faster than the market.

Josh Kobza: On Burger King in the US, I would go back and probably just reiterate what I said before in terms of what we have left to come. We've got more and more advertising dollars that we're going to be prepared to spend. I think that some of the team are making really great improvements on operations, working together with our franchisees who are increasingly engaged in driving higher quality operations. We see this in all of our metrics across the business that are things like speed of service and guest feedback are all getting better, and they have been for a number of quarters. I think we're gonna layer on top of that some of the capital that's gonna go into the business.

On Burger King.

Speaker 3: I would go back and probably just reiterate what I said before in terms of what we have left to come. We've got more and more advertising dollars that we're going to be prepared to spend. I think that Tom and the team are making really great improvements on operations, working together with our franchisees who are increasingly engaged in driving higher quality operations. We see this in all of our metrics.

In the U S.

I would go back and probably just reiterate what I said before in terms of what we have left to come we've got more and more advertising dollars that we're going to be prepared to spend I think that Tom and the team are making really great improvements on operations working together with our franchisees who are increasingly engaged in driving higher quality operations. We see this in our all of our <unk>.

Metrics across the business that are things like speed of service and guest.

Speaker 3: across the business that are things like speed of service and guest feedback are all getting better and they happen for a number of quarters. And I think we're gonna layer on top of that, some of the capital that's gonna go into the business, I don't think you've really seen that yet, but you will over the next kind of four to six quarters. You'll start seeing the new technology in the restaurants, you'll start seeing upgrades to the equipment in the back of house, and you're gonna start seeing more high quality remodels. And I think those all, all those things give us confidence in the direction.

Guest feedback are all getting better and they have been for a number of quarters and I think we're in a layer on top of that some of the capital that's going to go into the business I don't think you've really seen that yet, but you will over the next kind of four to six quarters Youll start seeing the new technology in the restaurants Youll start seeing upgrades to the equipment in the back of house and you're going to start seeing more high quality remodels.

Josh Kobza: I don't think you've really seen that yet, but you will over the next kind of 4 to 6 quarters. You'll start seeing the new technology in the restaurants. You'll start seeing upgrades to the equipment in the back of house, and you're gonna start seeing more high-quality remodels. I think all those things give us confidence in the direction of the business.

And I think those all all of those things give us confidence in the direction of the business.

Operator: Our next question comes from Danilo Gargiulo of Bernstein. Your line is now open. Please go ahead.

Speaker 12: On the question comes from Daniel Garjulio, offer and see your line for open, please go ahead.

Our next question comes from Danielle <unk> of Bernstein. Your line is open. Please go ahead.

Speaker 13: Thank you. Can you please give us some color on the evolution of the expansion of your brands in China? In particular, some brands had some challenges in the past, so what's different this time? Maybe in particular, if you can focus also on Tim's evolution, how are they reacting to the intensified coffee competition in China? Thank you.

Danilo Gargiulo: Thank you. Can you please give us some color on the evolution of the expansion of your brands in China? In particular, some brands had some challenges in the past, so what's different this time? Maybe in particular, if you can focus also on Tim's evolution, how are they reacting to the intensified coffee competition in China? Thank you.

Speaker 13: Thank you. Can you please give us some color on the evolution of the expansion of your brands in China? In particular, some brands had some challenges in the past. So what's different this time? And maybe in particular, if you can focus also on team's evolution, how are we reacting to the intensifying classic competition in China? Thank you.

Thank you.

Just give us some color on the evolution of the expansion of your brands in China in particular, some brands had some economies in the past so what's different this time and maybe in particular, if you can pump was awesome team's evolution how are the reacting to intensify coffee competition in China. Thank you.

Josh Kobza: Thanks. I'll address each of the brands in turn. You know, I think if you look at BK, we grew at a really rapid pace for a number of years through the teens, and then we slowed down a bit during COVID, and I think we're starting to come out of that. We're starting to see improvements in the pipelines and the outlook for growth at BK China. I think the team there is increasingly engaged and focused on ramping back up the pace of growth. You know, we're seeing improved sales performance as well. If you look from Q1 into Q2, the same store sales picked up. This both for Burger King and for Tims.

Speaker 3: Yeah. Thanks. Well, I'll trust each of the brands in turn. I think if you look at at BK, we grew a really rapid pace for a number of years through the teams. And then we slowed down a bit during COVID. And I think we're starting to come out of that. We're starting to see improvements in the pipelines. And they all look for growth at BK China. I think the team there is increasingly engaged and focused on ramping back up the pace of growth.

Yes.

Thanks, So ultra at each of the brands in turn I think if you look at BK. We grew at a really rapid pace for a number of years through the teams and then we slowed down a bit during COVID-19 and I think we're starting to come out of that we're starting to see improvements in the pipelines and the outlook for growth at BK, China I think the team there is increasingly.

Aged and focus on ramping back up the pace of growth and.

Speaker 3: And we're seeing improved sales performance as well. If you look from Q1 to Q2, this insor sales picked up both for Birking and for Tim's. We had double digit comparable sales at both the brands in the second quarter. I think the sales performance is picking up too.

We're seeing improved sales performance as well if you look from Q1 into Q2, the same store sales picked up both for Burger King and for Tims, we had double digit comparable sales at both of the brands in the second quarter. The sales performance is picking up to at Tims has been a huge growth story, we've ramped up our store presence.

Josh Kobza: We had double-digit comparable sales at both of the brands in Q2. I think the sales performance is picking up too. At Tims has been a huge growth story. We've ramped up our store presence pretty rapidly over the last few years since we entered. To your point, it is a competitive market, but we're very focused on providing a differentiated product and experience that some of our competitors don't offer there. Lastly, with Popeyes, which we're incredibly excited for, you know, you will see we signed a new master franchise partnership a few months back, and we're really excited to open some of our first restaurants again.

Speaker 3: At Tim's has been a huge growth story. We've ramped up our store presence pretty rapidly over the last few years since we entered. To your point, it is a competitive market and we're very focused on providing a differentiated product and experience that some of our competitors don't offer.

Pretty rapidly over the last few years since we entered to your point. It is a competitive market, but we're very focused on providing a differentiated product and experience.

Some of our competitors don't offer over there and lastly, with popeye's, which we're incredibly excited for.

Speaker 3: And lastly, with Popeyes, which we're incredibly excited for, you know, you will see we signed a new master franchise partnership a few months back. And we're really excited to open some of our first restaurants. Again, we expect that will happen in the next couple of months. And we can't wait to see the reaction to having Popeyes in China. It's one of the things that we think has some of the most potential anywhere in the world for a bit.

You will see we signed a new master franchise partnership a few months back and we're really excited to open some of our first restaurants again, we expect that will happen in the next couple of months.

Josh Kobza: We expect that'll happen in the next couple of months, and we can't wait to see the reaction to having Popeyes in China. It's one of the things that we think has some of the most potential anywhere in the world for our business.

And we can't wait to see the reaction to having Bob is in China. It's one of the things that we think is some of the most potential anywhere in the world for our business.

Operator: Our next question comes from the line of Brian Mullan of Piper Sandler. Your line is now open. Please go ahead.

Speaker 12: And that question comes from the line of Brian Mullin of Piper Sandler. The lines are open. Please go ahead.

Our next question comes from the line of Brian Mullan Piper Sandler Your line is now open.

Please go ahead.

Speaker 14: Thank you. Just a follow-up on Tims Canada, specific to the loyalty program. Is that starting to become a more meaningful driver of the top line versus what we've seen in the past? You know, even if not just yet, you know, maybe could you just talk about how you see the program evolving in the coming years, and whether you believe this, you know, represents a future tailwind to the transaction growth from your very large user base in the country? Any thoughts would be great.

Brian Mullan: Thank you. Just a follow-up on Tims Canada, specific to the loyalty program. Is that starting to become a more meaningful driver of the top line versus what we've seen in the past? You know, even if not just yet, you know, maybe could you just talk about how you see the program evolving in the coming years, and whether you believe this, you know, represents a future tailwind to the transaction growth from your very large user base in the country? Any thoughts would be great.

Speaker 14: Thank you. Just a follow up on Tim's Canada specific to the loyalty program. Is that starting to become a more meaningful driver of the top line versus what we've seen in the past? And then, you know, even if not just yet, you know, maybe could you just talk about how you see the program evolving in the coming years and whether you believe this, you know, represents a future tail end to the transaction growth from your very large user base.

Thank you just a follow up on Tims, Canada specific to the loyalty program.

Is that starting to become a more meaningful driver of the topline versus what we've seen in the past and then even if not just yet maybe could you just talk about how you see the program evolving in the coming years.

And whether you believe this represents a future tailwind to the transaction growth from your very large user base in the country any thoughts would be great.

Josh Kobza: Yeah, Brian. Good morning and thanks. We are really proud of the work that Axel and his whole team and the folks that are working on the digital business have done. You know, in a country of 38 million people, we have 4.9 million monthly active users. It's really something tremendous. I think Tims Rewards has evolved to become a really important part of the business. I think it has been important in driving customer loyalty in some of our sales. I think what you've seen happen recently is we've been expanding what Tims Rewards means. We have more contests that you can play on the app. Now you probably saw very recently, we've expanded it into a co-branded credit card program.

Speaker 3: Yeah, Brian . Morning and thanks. We are really proud of the work that Axel and his whole team and the folks that are working on the digital business have done. In a country of 38 million people, we have 4.9 million monthly active users. It's really something tremendous.

Yeah, Brian good morning, and thanks.

We're really proud of the work that axle and his whole team and the folks.

That are working on the digital business have done.

In a country of 38 million people, we have $4 9 million monthly active users its really something tremendous and I think I think tims rewards has evolved to become a really important part of the business and I think it has been important in driving customer loyalty and some of our sales I think what <unk> seen happened recently is we've been expanding what tims rewards means.

Speaker 3: And I think, I think Kim's rewards have all become a really important part of the business.

Speaker 3: And I think it has been important in driving customer loyalty in some of our sales. I think what you've seen happen recently is we've been expanding what Tim's rewards means. So we have more contests that you can play on the app and now you've probably saw very recently, we've expanded it into a co-branded credit card program. And I think what you can expect over the next couple of years is more of that. We'll expand what Tim's rewards can be. We'll expand the reach of that into all of our other parts of our guest lives.

So we have more contests that you can play in that and now you probably saw very recently, we've expanded into a co branded credit card program and I think what you can expect over the next couple of years as more of that will expand what tims rewards can be will expand the reach of that into all of our other parts of our guests' lives.

Josh Kobza: I think what you can expect over the next couple of years is more of that. We'll expand what Tims Rewards can be. We'll expand kind of the reach of that, into all of our other parts of our guests' lives. It already is, but we think it'll become an even bigger presence within the Canadian loyalty market across a lot of different banners.

Speaker 3: And we think it's going to become one of the, it already is, but we think it'll become many bigger presence within the Canadian loyalty market across a lot of different.

And we think it's going to become one of the it already is but we think it'll become a bigger presence within the Canadian loyalty market across a lot of different banners.

Operator: Our next question comes from Joshua Long of Stephens. Your line is now open. Please go ahead.

Speaker 12: On the question come from Joshua Long of Stephen, your line so open please go ahead.

Our next question comes from Joshua Long of Stephens. Your line is now open. Please go ahead.

Speaker 15: Great. Thank you for taking my question. In your prepared comments, you noted the opportunity, particularly in, you know, leveraging learnings from Popeyes International. Curious if that's something that is still an opportunity across the other brands in the portfolio, if that's already kind of largely come to bear, or just where we're at there in terms of being able to cross-pollinate ideas across the global unit base.

Joshua Long: Great. Thank you for taking my question. In your prepared comments, you noted the opportunity, particularly in, you know, leveraging learnings from Popeyes International. Curious if that's something that is still an opportunity across the other brands in the portfolio, if that's already kind of largely come to bear, or just where we're at there in terms of being able to cross-pollinate ideas across the global unit base.

Great. Thank you for taking my question in your prepared comments you noted the opportunity, particularly in leveraging learnings from Popeyes International curious if thats something that is still an opportunity across the other brands in the portfolio. That's already kind of largely come to bear or just where were out there in terms of being able to cross pollinate ideas.

Speaker 11: Great, thank you for taking my question. In your prepared comments, you noted the opportunity, particularly in leveraging learning from Popeyes International. Curious that that's something that is still an opportunity across the other brands in the portfolio, that's already kind of largely come to bear, or just where we're at there in terms of being able to cross-pollinate ideas across the global unit base.

<unk>.

Global unit base.

Josh Kobza: Yeah. Joshua, I'll make a couple comments, and see if Patrick has anything to add too. In Popeyes, we are absolutely bringing some of the learnings that we had on making the kitchens easier to run to the US. Patrick and I actually visited one of the first easy-to-run kitchens here in Florida, a fantastic franchisee's restaurant just north of our office here. It's early days, but we're really excited by both some of the ideas that are being brought and the impact they're having on the kitchen and the pace at which the team is working. The Popeyes team is doing a great job bringing some of those ideas to life in our restaurants here.

Speaker 3: Yeah, Joshua Kelt makes a couple comments and see if Patrick has anything to add to. And Popeyes, we are absolutely bringing some of the learnings that we add on making the kitchens easier to run to the US. Patrick and I actually visited one of the first easy to run kitchens here in Florida. A fantastic franchisees restaurant just north of our office here. And it's early days, but we're really excited by both.

Yes, Joshua make couple of comments.

Patrick is anything to add to.

And popeye's were absolutely bring some of the learnings that we had on making the kitchens easier to run to the U S. Patrick and I actually visited one of the first easy to run kitchens here in Florida Fantastic franchisees restaurants, just north of our office here.

It is early days, but we're really excited by both some of the ideas that are being brought in and the impact they're having on the kitchen and the pace at which the team is working.

Speaker 3: Some of the ideas that are being brought, and in fact they're having on the kitchen, and the pace at which the team is working, the Popeye team is doing a great job bringing some of those ideas to life and in our restaurants here.

By the team is doing a great job, bringing those bring some of those ideas to life in our restaurants here I think the other biggest place that we can bring learnings from our international market, probably at our Burger King business.

Josh Kobza: I think the other biggest place that we can bring learnings from our international market is probably at our Burger King business. You know, both on the impact that modern restaurants can have on the brand perception. That's a really powerful thing that we see all across the world with our Burger King business. But also how digital can transform the business. You know, if we go to some of our restaurants, whether it's in Asia or Europe, increasingly in Latin America, they're much more digital, especially the in-restaurant transactions, which are almost entirely run through kiosks.

Speaker 3: I think the other biggest place that we can bring learnings from our international market is probably at our Burger King business. You know, both on the impact that that modern restaurants can have on the brand perception, that's a really powerful thing that we see all across the world with our Burger King business, but also have digital can transform the business.

On the impact that that modern restaurants can have on the brand perception.

That's a really powerful thing that we see all across the world with our Burger King business, but also how digital can transform the business. If we go to some of our restaurants, whether it's in Asia or Europe increasingly in Latin America. They are much more digital, especially the in restaurant transactions, which are almost entirely run through kiosks. So some of those learnings are.

Speaker 3: If we go to some of our restaurants, whether it's in Asia or Europe , increasingly in Latin America, they're much more digital, especially the in restaurant transactions, which are almost entirely run through KIAF. So some of those, those learnings are absolutely impacting how we think about where the BKU-US business can go, and really the opportunity for that business to move the brand perception and quality of operation.

Josh Kobza: Some of those learnings are absolutely impacting how we think about where the BK US business can go and really the opportunity for that business to move the brand perception and quality of operations.

Absolutely impacting how we think about where the BK U S business can go and really the opportunity for that business.

To move the brand perception of the quality of operations.

Patrick Doyle: Yeah, I mean, the only thing I'd add to it is I couldn't agree more on the Burger King side of that. I mean, it just. You go to Burger King restaurants outside of the US, they look terrific. The food offering, the menu looks great. You know, operations are great. They're very digitally focused. You know, we did a little over $4 billion in system sales at Burger King in Q2, and we grew that 18.4% year over year. We have clearly got some things figured out on the Burger King side outside of the US, and I think there's a great opportunity to bring those learnings, some of the operational systems that they've put in place, what they're doing with the food. I mean, there's a lot to learn.

Speaker 5: Yeah, the only thing I'd add to it is I couldn't agree more on the Burger King side of that. It just you go to Burger King restaurants outside of the US. They look terrific. The food offering, the menu looks great. Operations are great. They're very digitally focused.

Yes, I mean, the only thing I would add to it.

Couldnt agree more on the on the Burger King side of that I mean, it just you go to Burger King restaurants outside of the U S. They look terrific.

The food offering the menu looks great.

Operations are great Theyre very digitally focused.

We did a little over $4 billion in system sales at Burger King in the second quarter, and we grew that 18, 4% year over year, we have clearly got some things figured out on the Burger King side.

Speaker 5: A little over four billion in system sales at Burger King in the second quarter and we grew that 18.4% year over year. We have clearly got some things figured out on the Burger King side.

Speaker 5: outside of the US and I think there's a great opportunity.

Outside of the U S and I think Theres a great opportunity.

Speaker 5: to bring those learnings, some of the operational systems that they put in place, what they're doing with the food. I mean, there is a lot to learn, the Burger King business.

To bring those learnings some of the operational.

Systems that they put in place what theyre doing with the food I mean, there is there is there is a lot to learn the Burger King business.

Patrick Doyle: The Burger King business, outside of the US, is overall in great shape, and we certainly want to bring some of that back into the US.

Speaker 5: Outside of the US is is overall in great shape and we certainly want to bring some of that back into the US

Outside of the U S is overall in great shape, and we certainly want to bring some of that back into the U S.

Operator: Our next question comes from the line of Jeffrey Bernstein of Barclays. Your line is now open. Please go ahead.

Speaker 12: On the question comes from the line of Jeffrey Bernstein of Bartlett, your line is open. Please go ahead.

Our next question comes from the line Jeffrey Bernstein of Barclays. Your line is now open. Please go ahead.

Speaker 16: Great. Thank you very much. Just a question on the global franchise sentiment, Patrick or Josh. I mean, it sounds like it's moving in the right direction for both BK and Tim Hortons in the home markets. I'm just wondering what's the top topic of conversations with the largest franchisees, maybe any kind of pushback you're getting. I know, Patrick, I think you said you're thinking the franchise level profitability improvement still has lots to go, but just wondering, as you're having more and more of those conversations now and maybe things are moving in the right direction, what is that greatest area of focus from a franchisee side of things? Thank you.

Jeffrey Bernstein: Great. Thank you very much. Just a question on the global franchise sentiment, Patrick or Josh. I mean, it sounds like it's moving in the right direction for both BK and Tim Hortons in the home markets. I'm just wondering what's the top topic of conversations with the largest franchisees, maybe any kind of pushback you're getting. I know, Patrick, I think you said you're thinking the franchise level profitability improvement still has lots to go, but just wondering, as you're having more and more of those conversations now and maybe things are moving in the right direction, what is that greatest area of focus from a franchisee side of things? Thank you.

Yeah.

Speaker 15: Great. Thank you very much. Just a question on the global franchise sentiment Patrick or Josh. I mean, it sounds like it's moving in the right direction for both PK and Tim Horns in the home market.

Great. Thank you very much.

Just a question on the global franchise sentiment.

Trick or Josh I mean, it sounds like it's moving in the right direction for both BK in Tim Hortons in the home markets I'm.

Speaker 15: Just wondering what's the top top of the conversation?

I'm just wondering what's the top topic of conversations with the largest franchisees, maybe any kind of pushback youre getting.

Speaker 15: with the largest franchisee's, maybe any kind of pushback you're getting.

Speaker 15: Patrick, I think you said you're thinking the franchise level profitability improvement still has lots to go, but you're just wondering that you're having more and more of those conversations now and maybe things are moving in the right direction. What is that greatest area of focus from a franchisey side of things? Thank you.

Patrick I think you said youre thinking the franchise level profitability improvement still has lots to go but just wondering how you are having more and more of those conversations now and maybe things are moving in the right direction. What is the greatest area of focus from our franchisees side of things. Thank you.

Okay.

Josh Kobza: Yeah. So I'll share a couple of thoughts. You know, I would say that improvements in franchise profitability are very much a front and center topic. The good news there is we've been making progress across the board. We've seen improvements in franchise profitability across all of the concepts, and that really helps a lot. We talked about a lot. It's great to see the results coming through, and I think that resonates really well with our franchisees.

Speaker 3: Yeah, so I'll share a couple of thoughts. You know, I would say that improvements in franchise profitability are very much a front-center topic. And the good news there is we've been making progress across the board. So we've seen improvements in franchise profitability across all of the concepts. And that really helps a lot. We talked about a lot. It's great to see the results coming through. And I think that resonates really well with the...

Yes.

Sure a couple of thoughts.

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I would say that improvements in franchise profitability are very much a front and center topic and the good news there is we've been making progress across the board. So.

We've seen improvements in franchise profitability across all of the concepts and that really helps a lot we talked about a lot. It's great to see the results coming through and I think that resonates really well with.

Speaker 3: with our franchisees. I think from there, once we've now that we've made more progress there and we'll continue to be focused on that, I think a lot of the conversations we're having are turning to the future where we can take the brands and some of the biggest growth opportunities and how we go after those, make compelling investments for both ourselves and our franchisees to drive the business forward and win in the marketplace.

Josh Kobza: I think from there, now that we've made more progress there, and we'll continue to be focused on that, I think a lot of the conversations we're having are turning to the future, where we can take the brands as some of the biggest growth opportunities and how we go after those, make compelling investments for both ourselves and our franchisees, to drive the business forward and win in the marketplace.

With our franchisees and I think from there once we've now that we've made more progress there and we will continue to be focused on that I think a lot of the conversations we're having are returning to the future where we can take the brands and some of the biggest growth opportunities and how we go after those may.

Make compelling investment investments for both ourselves and our franchisees.

To drive the business forward and win in the marketplace.

Patrick Doyle: Yeah. I guess the only thing I would add to that is, I mean, it really depends on where you are in the development of that business within each country. I think what we've seen is we are proving out the theory that having these new brands that we can take into international with the knowledge base that we have across those markets, sometimes with some of the same partners, is a real advantage and a real differentiator for us. There is a lot of growth yet to come on the international side of the business. You almost have to put those markets into kind of three groupings, right?

Speaker 5: Yeah, and I guess the only thing I would add to that is, I mean, it really depends on where you are in the development of...

Yeah, and I guess.

The only thing I would add to that is I mean, it really depends on where you are in the development of.

Speaker 5: that business within each country. And I think what we've seen is, is we are proving out the theory that having these new brands that we can take into international with the knowledge base that we have across those markets, sometimes with some of the same partners.

That business within each country and I think what we've seen is as we are proving out the theory that having these new brands that we can take into international with the knowledge base that we have across those markets, sometimes with some of the same partners is.

Speaker 5: is a real advantage and a real differentiator for us. There is a lot of growth yet to come on the international side of the business, but you almost have to put those markets into kind of three groupings, right? The markets that...

A real advantage and a real differentiator for US there is a lot of growth yet to come on the international.

National side of the business, but you almost have to put those markets into kind of three groupings right the markets.

Patrick Doyle: The markets that, you know, that are just opening or haven't opened yet, and we're looking for the right partner and getting things right for the launch, in that market. You go through a period of time when you're kind of refining the business. You're making sure that you're getting the returns right at the store level. You know, that happens over the first couple of years that the market is open, as you learn about kind of specifics of applying that brand into each market. Once you've got that right, then you go into a fast growth mode. You know, we've got lots of markets in each of those stages where, you know, we're just getting them launched or we're not there.

Speaker 5: you know, that are just opening or have it opened yet and we're looking for the right partner and and getting things right for the launch.

That are just opening or Havent opened yet and we're looking for the right partner in.

And getting things right for the launch.

Speaker 5: in that market, then you go through a period of time when you're kind of refining the business.

In that market then you go through a period of time, when youre kind of refining the business.

Speaker 5: You're making sure that you're getting the returns right at the store level. And that happens over the first couple of years that the market is open as you learn about specifics of applying that brand into each market. And once you've got that right, then you go into a fast growth mode.

Youre, making sure that you are getting the returns right at the store level.

And that happens over the first couple of years that the market is open as you learn about kind of specifics of applying that brand into each market.

Once you've got that right then you go into a fast growth mode.

Speaker 5: And so, you know, we've got lots of markets in each of those stages where, you know, we're just getting them launched or we're not there. We're kind of refining it if we're already in. And it's early in the first couple of years. And then once you've got those unit economics right, you know, you just add lots of fuel and accelerate that growth.

And so we've got lots of markets in each of those stages, where we're just getting them launched or we're not there were kind of refining it if we're already in and it's early in the first couple of years and then once you've got those unit economics right.

Patrick Doyle: We're kind of refining it if we're already in, and it's early in the first couple of years. Then once you've got those unit economics right, you know, you just add lots of fuel and accelerate that growth. If you look at the results of each of the brands outside of the US, you kind of see that happening. You see a you know very big very successful BK business outside of the US. You know we're now at a run rate you know both Popeyes and Tims are now north of $1 billion run rate system-wide sales growing very fast. It's exciting, but the answer is really a market by market answer, depending on where they are in their evolution.

Just to add lots of fuel and accelerate that growth.

Speaker 5: And if you look at the results of each of the brands.

And.

If you look at the results of each of the brands outside of the U S. You kind of see that happening you see.

Speaker 5: outside of the US, you kind of see that happening. You see a very big, very successful BK business outside of the US. And what are now at a run rate? Both Popeyes and Tim's are now north of a billion run rate system wide sales growing very, very fast. So it's exciting, but the answer is really a market by market answer, depending on where they are in their evolution.

Very big very successful BK business outside of the U S.

And what are now at a run rate.

Both popeye's in Tim's are now north of $1 billion run rate systemwide sales growing very very fast. So it's exciting but the answer is really a market by market answer depending on where they are in their evolution.

Operator: Our next question comes from the line of Gregory Francfort of Guggenheim Securities. Your line is now open. Please go ahead.

Speaker 12: Our next question comes from the line of Gregory Frank Ford of Guggenheim Securities. Your line is open. Please go ahead.

Our next question comes from the line correctly.

Hum.

This is Dan Hynes Securities. Your line is now open pit go ahead.

Speaker 17: Hey, hey, thanks for the question. My question is around you guys have talked a little about just the work on the Burger King US side, to improve kind of the quality of the food, the customer perceptions. I think you guys have focused also a lot on the all complaints ratio. Can you maybe dig down into kind of other metrics and kind of the improvement either in taste or quality or just anything else that could help us frame how much that has changed and if it's being driven by customer frequency or anything of that metric would be helpful. Thanks.

Gregory Francfort: Hey, hey, thanks for the question. My question is around you guys have talked a little about just the work on the Burger King US side, to improve kind of the quality of the food, the customer perceptions. I think you guys have focused also a lot on the all complaints ratio. Can you maybe dig down into kind of other metrics and kind of the improvement either in taste or quality or just anything else that could help us frame how much that has changed and if it's being driven by customer frequency or anything of that metric would be helpful. Thanks.

Speaker 16: Hey, hey, thanks for the question. My question is right. You guys talked all about

Hey, Thanks for the question.

Question is you guys talked a little about just a bit.

Speaker 16: a virtual work down the birth in the US side to improve the quality of the food, the customer perceptions. And I think you guys have focused also a lot on the all complaints ratio. And you maybe dig down into other metrics and the improvement either in taste or quality or just anything else that could help us frame how much that has changed if it's being driven by customer frequency or anything of that measure to be helpful. Thanks.

<unk> worked on the Burger King U S side.

To improve the quality of the food the customer perceptions and I think you guys have focused awful lot on the all complaints ratio can you maybe dig down into kind of other metrics and kind of the improvement either in taste or quality or just anything else that could help us frame how much that has changed and if it is being driven by customer frequency.

C or anything of that metric would be helpful. Thanks.

Josh Kobza: Yeah. Greg, good morning. Thanks for the question. You know, a couple of the things that I think Tom and the team are doing really well to drive taste and quality perception. One of them I referenced a little bit earlier. We've done a lot of training that's very focused on Whopper quality, and that like actually it makes a huge difference. A lot of the promotions that we've been doing have been focused on the Whopper. So those things are allowing us to produce a better product every day. And we see that in the product satisfaction data and in addition to our overall guest satisfaction data or some of that ACR data.

Speaker 3: Yeah, right. Good morning, thanks for the question. You know, a couple of the things that I think Tom and the team are doing really well to drive taste and quality perception. One of them, I referenced a little bit earlier. We've done a lot of training that's very focused on on WAPER quality. And that like that actually makes a huge difference. We've also been a lot of the promotions that we've been doing have been focused on the WAPER. So those things are allowing us to produce a better product every day. And we see that in the product satisfaction data and in addition to our overall satisfaction data or some of that ACR data. So we're seeing across the board and whatever the data source is. We're seeing pretty consistent feedback that guests are perceiving the products better.

Yes. Good morning, Thanks for the question.

A couple of the things that that I think Tom and the team are doing really well to drive.

And quality perception.

Or am I I referenced a little bit earlier, we've done a lot of training that's very focused on water quality.

And that like that actually it makes a huge difference. We've also been a lot of the promotions that we've been doing has been focused on the Walker. So those things are allowing us to produce a better product everyday.

And we see that in the product satisfaction data. In addition to our overall guest satisfaction data or some of that ACR data. So we're seeing across the board and whatever the data sources.

Josh Kobza: We're seeing across the board and whatever the data source is, we're seeing pretty consistent feedback that guests are perceiving the products better. The other thing that we're doing that helps is some of the work on the equipment side. Just making sure that all the equipment's in proper shape and we're upgrading equipment, that all has a really big impact on the quality of the product that we're able to produce at all the restaurants. A lot of things going on, primarily operational initiatives, that drive better quality and better quality perception for guests.

It seemed pretty consistent feedback that guests are perceiving the products better and the other thing that we're doing that helps us some of the work on the equipment side. So just making sure that all the equipment and proper shape and were upgrading equipment that all hasnt really big impact on the quality of the product that we're able to produce at all the restaurants. So a lot of things going on primarily operational.

Speaker 3: The other thing that we're doing that helps is some of the work on the equipment side. So just making sure that all the equipment's in proper shape and we're upgrading equipment, that all has a really big impact on the quality of the product that we're able to produce at all the restaurants.

Speaker 3: So a lot of things going on primarily operational initiatives that drive better quality and better quality perception for forget.

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That drive better quality and better quality perception for guests.

Operator: Our next question comes from the line of David Tarantino of Baird. Your line is now open. Please go ahead.

Speaker 2: Our next question comes from the line of David Tarantino, of Badd, your line is open. Please go ahead.

Our next question comes from the line of David.

Your line is now open. Please go ahead.

Speaker 18: Hi, good morning. I had a couple of questions about the Burger King US average check trends and, you know, obviously elevated for Burger King in Q2 like it was for a lot of other brands. You know, with inflation starting to ease, I wanted to get your thoughts on when we should expect to see the average check growth for Burger King start to normalize and perhaps be, you know, more consistent with what you've seen historically. Then the second part of my question is we started to hear from a few others that as inflation has come down, the promotional activity in the industry has started to inch higher.

David Tarantino: Hi, good morning. I had a couple of questions about the Burger King US average check trends and, you know, obviously elevated for Burger King in Q2 like it was for a lot of other brands. You know, with inflation starting to ease, I wanted to get your thoughts on when we should expect to see the average check growth for Burger King start to normalize and perhaps be, you know, more consistent with what you've seen historically. Then the second part of my question is we started to hear from a few others that as inflation has come down, the promotional activity in the industry has started to inch higher.

Speaker 17: Hi, good morning. I had a couple of questions about the Burger King US average check trends and obviously elevated for Burger King in the second quarter like it was for a lot of other brands. So you know with inflation starting

Hi, Good morning, I had a couple of questions about the Burger King U S average check trends and.

Obviously elevated for Burger King in the second quarter like it was for a lot of other brands, so with inflation starting to ease.

Speaker 17: I wanted to get your thoughts on when we should expect to see the average check growth for Burger King start to normalize and perhaps be more consistent with what you've seen.

I wanted to I wanted to get your thoughts on when we should expect to see the average check growth for for Burger King start to normalize and perhaps.

More consistent with what you've seen historically and then.

Speaker 17: The second part of my question is we started to hear from a few others that as inflation has come down, the promotional activity in the industry has started to entire. And just wondering, you know, kind of your thoughts on that dynamic and what your strategy would be if the environment were to get more promotional in the near future.

The second part of my question is we've started to hear from a few others.

Inflation has come down.

Promotional activity in the industry and started.

Speaker 18: Just wondering, you know, kinda your thoughts on that dynamic and what your strategy would be if the environment were to get more promotional in the near term? Thanks.

David Tarantino: Just wondering, you know, kinda your thoughts on that dynamic and what your strategy would be if the environment were to get more promotional in the near term? Thanks.

It's higher and just wondering.

Kind of your thoughts on that dynamic and what your strategy would be if the environment were to get more promotional in the near term. Thanks.

Josh Kobza: Yeah, David, a couple of thoughts on this one. You know, one, in terms of the average check trends, I do think we'll see some moderation in some of those. Two, probably two main things going on. One, we are seeing some moderation in terms of our input costs. So we've seen them coming down over the course of this year and the outlook for the full year moderating. So I think that will lead to a little bit less price taking for the H2 of this year. We'll also start to lap some of the reduction in discounting that we did in the H2 of last year.

Speaker 3: Yeah, David, a couple of thoughts on this one. You know, one in terms of the average check trend, I do think we'll see some moderation in some of those, two, probably two main things going on. One, we are seeing some moderation in terms of our input cost.

Yes, David.

Couple of thoughts on this one one in terms of the average check trends I do think we'll see some moderation in some of those two probably two main things going on one we are seeing some moderation in terms of our input costs.

Speaker 3: So we've seen them coming down over the course of this year and the outlook for the full year moderating. So I think that will lead to a little bit less of price taking it for the back half of this year. And then we'll also start to lap some of the reduction in discounting that we did in the back half of last year. So if you remember, we made some really important changes, things like taking the WAPR off of two for five.

So we've seen them coming down over the course of this year and the outlook for the full year moderating so I think that will lead.

So a little bit less.

Price taking it for the back half of this year and then we will also start to lap some of the reduction in discounting that we did in the back half of last year. So if you remember we made some really important changes things like taking the whopper off of two for $5.

Josh Kobza: If you remember, we made some really important changes, things like taking the Whopper off of 2 for 5. We'll start to lap some of those things as you get through the H2 of this year. I'd say the combination of those two things will probably cause you to see a bit of a reduction in the size of the check delta year-on-year as we move through the H2 of this year and into 2024. You know, in terms of promotional intensity, we haven't seen a big change in promotional intensity across the industry yet. Nothing really to share there that we've seen yet.

Speaker 3: And we'll start to laugh some of those things as you get through the backups of this year. And I'd say the combination of those two things will probably call you to see a bit of a reduction in the size of the checked Delta year on New Year's. We move through the back after this year and into 2020.

We will start to lap some of those things as you get through the back half of this year and I'd say the combination of those two things will probably.

Cause you to see a bit of a.

Reduction in the size of.

The Czech Delta year on year, as we move through the back half of this year and into 2024.

Speaker 3: In terms of promotional intensity, we haven't seen a big change in promotional intensity across industry yet. So nothing really to, nothing to share there that we've seen yet.

In terms of promotional intensity, we haven't seen a big change in promotional intensity across the industry, yet so nothing really too.

Nothing to share there that we've seen yet.

Operator: Our next question comes from John Zamparo of CIBC. Your line is now open. Please go ahead.

Speaker 2: Are the questions come from John Zampero of CIBC? Your lines are open. Please go ahead.

Our next question comes from John from Pyrite Akshay.

Your line is now open. Please go ahead.

Speaker 19: Great. Thank you. Good morning. My question's on Tims Canada. It's nice to see brewed coffee increase to above 2019 levels. I was hoping you could expand on the traffic commentary at Tims, specifically how that looks compared to 2019 and in particular the breakfast day part. Obviously PM food is the main focus or at least a primary focus, but just like to get a sense of how much of your breakfast traffic has a remaining opportunity at Tims. Thank you.

John Zamparo: Great. Thank you. Good morning. My question's on Tims Canada. It's nice to see brewed coffee increase to above 2019 levels. I was hoping you could expand on the traffic commentary at Tims, specifically how that looks compared to 2019 and in particular the breakfast day part. Obviously PM food is the main focus or at least a primary focus, but just like to get a sense of how much of your breakfast traffic has a remaining opportunity at Tims. Thank you.

Speaker 18: Great, thank you, good morning. My question's on Tim's Canada. It's nice to see brood coffee increased to above 2019 levels. I was hoping you could expand on the traffic commentary at Tim's specifically how that looks compared to 19 and in particular the breakfast day part. And obviously, PM Food is the main focus or at least a primary focus, but just like to get a sense of how much of you breakfast traffic has a remaining opportunity.

Great. Thank you good morning, My question's on Tims, Canada, it's nice to see brewed coffee increase to above 2019 levels. I was hoping you could expand on the traffic commentary that tim's, specifically, how that looks compared to 19 and in particular at the breakfast day part and obviously PM food is the main focus or at least a crime.

Very focused but just like to get a sense of how much of your breakfast traffic as the remaining opportunity that Tim. Thank you.

Josh Kobza: Yeah, John. As I mentioned earlier, we had fantastic comps and a meaningful part of that was traffic year on year, which is great. We still are at a little bit lower traffic levels than we saw in 2019. I think to your point, some of that is in breakfast, and I think a lot of that's driven by changes in patterns of working from home. You know, I think that we'll have to see how that evolves in Canada. I think there's a lot of the patterns have sort of settled out for the time being, a little bit different patterns than what we saw three or four years ago. We'll have to see how that evolves over time.

Speaker 3: Yeah, John . As I mentioned earlier, the, we had fantastic comps and a meaningful part of that was traffic year on year, which is great. We still are at a little bit lower traffic levels than we saw in 2019. And I think your point, some of that is in breakfast. And I think a lot of that's driven by changes and patterns of working from home.

Yes, John .

As I mentioned earlier.

We had fantastic comps and a meaningful part of that was traffic year on year, which is great.

We still are at a little bit lower traffic levels than we saw in 2019 and I think to your point some of that is in breakfast and I think a lot of that is driven.

Changes in patterns of working from home.

Speaker 3: You know, I think that we'll have to see how that evolves in Canada. I think a lot of the patterns have sort of settled out through the time being, a little bit different patterns than what we saw three or four years ago. But we'll have to see how that evolves.

I think that we will have to see how that evolves in Canada I think.

The patterns have sort of settled out for the time being a little bit different patterns than what we saw three or four years ago.

But we'll have to see how that evolves over time.

Operator: Our next question comes from the line of Jim Sanderson of Northcoast Research. Your line is now open. Please go ahead.

Speaker 2: Our next question comes from the line of Jim Santasson of North Coast Research, your line is open, please go ahead.

Our next question comes from the line of Kim Samsung Knox.

Chris Research. Your line is now open. Please go ahead.

Speaker 20: Hey, thanks for the question. Just following up on the prior comment about the Tim Hortons. Can you provide us with a sense of what part of the same store sales in Q2 was related to menu pricing and just more broadly, your philosophy on how you look at pricing, going into H2 as inflation starts to moderate for the Canadian marketplace and for Tim Hortons. Thank you.

Jim Sanderson: Hey, thanks for the question. Just following up on the prior comment about the Tim Hortons. Can you provide us with a sense of what part of the same store sales in Q2 was related to menu pricing and just more broadly, your philosophy on how you look at pricing, going into H2 as inflation starts to moderate for the Canadian marketplace and for Tim Hortons. Thank you.

Speaker 19: Hey, thanks for the question. Just following up on the prior comment about the Tim Hortons, can you provide us with a sense of what part of the same store sales in the second quarter was related to menu pricing and just more broadly your philosophy on how you look at pricing going into the back half of the year as inflation starts to moderate for the Canadian marketplace and for Tim Hortons? Thank you.

Hey, Thanks for the question just following up on the prior comments about Tim Hortons can you provide us with a sense of what part of the same store sales in the second quarter was related to menu pricing and just more broadly your philosophy on how you look at pricing going into the back half of the year as inflation starts to moderate for the Canadian marketplace and for Tim Hortons.

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Josh Kobza: Yeah, Jim. Part of the same store sales was coming from pricing. You know, we're generally looking at CPI and what our competitors are doing. We're not too far off of any of those metrics. I do think to your question, we will see some more moderation as we get through the back half of this year. We're seeing some of the input costs start to come down, and so our, like, our pricing that we take at the restaurant will probably decline as well. I think the other good thing that's happening, good dynamic that's happening within the space in Canada is that our pricing continues to be lower than what you'd see at grocery. I think that helps traffic trends in the restaurant industry as well.

Yes, Jim.

Speaker 3: Part of the things we're seeing was coming from pricing. You know, we're generally looking at CPI and what our competitors are doing. So we're not too far off of any of those metrics. I do think to your question, we will see some more moderation as we get through the back app this year. We're seeing some of the input costs start to come down and so our pricing that we take at the restaurant will probably decline as well. I think the other good thing that's happening, and good dynamics are happening within this space in Canada.

Part of the same store sales was coming from from pricing. We're generally looking at CPI and what our competitors are doing so we're not too far off of any of those metrics I do think to your question. We will see some more moderation as we get through the back half.

This year, we're seeing some of the input costs ought to come down and so are our pricing that we take at the restaurant will probably decline as well I think the other good thing that that's happening good dynamic that's happening within the space in Canada is that our pricing continues to be lower than what you'd see at grocery.

Speaker 3: is that our pricing continues to be lower than what you'd see at grocery. And I think that helps traffic trends in the restaurant industry as well.

And I think that helps traffic trends in the restaurant industry as well.

Operator: As there are no additional questions waiting at this time, I'd like to hand the call back over to Josh Kobza for closing remarks.

Speaker 2: As there are no additional questions, wait and at this time I'd like to hand the call back over to Josh Copsa, we'll close the room.

Oh, sorry, no additional questions at this time I'd like to hand the.

Call back over to Josh Kobza for closing remarks.

Josh Kobza: Great. Thank you very much. Well, just wanted to thank everybody for joining us today. I'd like to extend a thanks to all of our teams around the world for their great work that contributed to the quarter. Wish you all a great day and look forward to speaking more on our Q3 call.

Speaker 3: Great, thank you very much. Well, just wanted to thank everybody for joining us today. I'd like to extend thanks to all of our teams around the world for their great work that contributed to the quarter. Wish you all a great day and look forward to speaking more on our Q3 call.

Great. Thank you very much we'll just wanted to thank everybody for joining us today I'd like to extend a thanks to all of our teams around the world.

Great work that contributed to the quarter wish you all a great day and look forward to speaking more on our Q3 call.

Operator: Ladies and gentlemen, this concludes today's Restaurant Brands International Inc. Q2 2023 earnings call. Thank you for joining. You may now disconnect.

Speaker 2: Ladies and gentlemen, this concludes today's restaurant brand, International Ink, second quarter to 2000 and 23rd. And Paul, thank you for joining. You may now disconnect.

Ladies and gentlemen, this concludes today.

International Inc. Second quarter two also.

Great.

Thank you for joining you may now disconnect.

Speaker 1: 2nd quarter, 2000, 23 and pull. Thank you for joining. You may now disconnect.

Okay.

Second quarter.

Great.

Thank you for joining you may now disconnect.

Yeah.

Q2 2023 Restaurant Brands International Inc Earnings Call

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