Burger King and Tim Hortons are divided by RBI to take the lead
Tim Hortons, Burger King, Popeyes, and Firehouse Subs were the four segments that comprised RBI’s prior segment reporting. The business stated that investors will have a more thorough understanding of the company’s performance and growth potential thanks to RBI’s new segment reporting.
According to RBI’s updated segment reporting, Tim Hortons is the largest segment, making up 45% of the business’s overall revenue. With a share of 35% of the company’s total revenue, Burger King is the second-largest category, while Popeyes is the smallest at 20%. Information on each segment’s operating income, capital expenditures, depreciation, and amortization costs are also included in RBI’s segment reporting.
The RBI changed the way it measures segment income: it now uses adjusted operating income (AOI) instead of adjusted EBITDA. Unlike adjusted EBITDA, which only takes into account the amortization of franchise agreements, AOI also takes into account the costs associated with share-based remuneration and non-cash incentive compensation. For further reference, RBI will continue to provide adjusted EBITDA at the individual segment and overall levels.
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According to RBI Chief Financial Officer Matthew Dunnigan, the company’s segment reporting will give investors a more thorough understanding of the business’s performance and growth potential, which may assist the company draw in new investors and raise its stock price.
According to Dunnigan, “investments that will drive long-term growth and attractive returns for our shareholders are our business leaders’ top priorities.” “Our move to AOI will raise accountability for delivering strong returns through profitability growth over time and provide increased focus on all operating expenses associated with these investments.”
In addition to 11 quarters of historical financial and operational data (from the first quarter of 2021 to the third quarter of 2023) for its five reportable segments, RBI has made unaudited information available. Visit rbi.com/investors for additional details.