Verdict Food Service

Daily Newsletter

09 August 2023

Daily Newsletter

Restaurant Brands International Q2 profits rise marginally to $351m

The restaurant company’s total revenues rose to $1.77bn from $1.63bn last year.

Restaurant Brands International (RBI) has reported a net income of $351m for the second quarter (Q2) of 2023, up 1.44% compared with $346m a year ago.

The company attributed the year-over-year growth in net income primarily to an increase in segment income in all our segments.

For the quarter of 30 June 2023, the company’s total revenues were $1.77bn against $1.63bn in the same quarter a year ago.

The increase in total revenues is due to a system-wide sales increase in all its operating segments, which includes Tim Hortons, Burger King, Popeyes Louisiana Kitchen and Firehouse Subs.

RBI’s consolidated comparable sales rose by 9.6% and its net restaurants grew 4.1% against last year.

The company’s system-wide sales grew by 14% year-over-year in the latest quarter.

During the period under review, RBI reported adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) of $665m, an increase of 10.3% compared to the prior year's quarter.

The company’s diluted EPS for the quarter was $0.77 versus $0.76 a year ago.

RBI CEO Josh Kobza said: “I am very proud of the continued performance of our teams and our franchisees who helped drive 14% growth in system-wide sales and another quarter of improved franchisee profitability.

“We are generating positive momentum and results behind each of our iconic brands by focusing on new menu innovations, supported by exceptional marketing and operations.

“I know the team is very motivated by the significant growth opportunities ahead of us in our home markets and around the world.”

Generative AI remains an untapped potential across the consumer industry

GlobalData estimates the total AI market will be worth $909 billion in 2030, growing at a CAGR of 35.2% between 2022 and 2030. The consumer goods, foodservice, and packaging sectors are undergoing digital transformation, accelerated by the COVID-19 pandemic and changing consumer preferences. AI can help companies operating in these sectors by significantly reducing costs and production times. In Nestlé's 2022 full-year results, the company announced a renewed focus on digitalization to drive growth. Financial and reputational pressures associated with supply chain disruptions and sustainability concerns are also driving interest in the digitalization of supply chains. Data science and ML are strong investments across all areas. However, the sectors cannot stop at AI-powered data analytics applications. They must also explore computer vision (CV), smart robots, AI sensors that automate manufacturing and distribution logistics, and generative AI tools that increase efficiency across corporate departments and customer service operations and enable innovation in product design. For the most part, the consumer goods, foodservice, and packaging sectors will not play a significant role in creating and developing AI hardware or platforms. Instead, these sectors will help scale up the adoption of AI technologies, such as CV, conversational platforms, and smart robots. This adoption will be driven by the financial benefits and potential cost savings AI automation delivers across global supply chains.