Restaurant Brands International Limited Partnership (QSP) has reported a 55.96 percent jump in profit for the quarter ended Dec. 31, 2016. The company has earned $185.90 million, or $0.50 a share in the quarter, compared with $119.20 million, or $0.25 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $208.30 million, or $0.44 a share compared with $152.50 million or $0.32 a share, a year ago. Revenue during the quarter grew 5.15 percent to $1,111.40 million from $1,057 million in the previous year period. Gross margin for the quarter expanded 461 basis points over the previous year period to 48.52 percent. Total expenses were 55.77 percent of quarterly revenues, down from 69.54 percent for the same period last year. This has led to an improvement of 1377 basis points in operating margin to 44.23 percent.
Operating income for the quarter was $491.60 million, compared with $322 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $512.40 million compared with $442.60 million in the prior year period. At the same time, adjusted EBITDA margin improved 423 basis points in the quarter to 46.10 percent from 41.87 percent in the last year period.
Daniel Schwartz, chief executive officer of Restaurant Brands International Inc. (“RBI”) commented, “We are pleased to report another year of solid results, with strong financial performance in the fourth quarter. Our continued focus on guest satisfaction and value creation for all of our stakeholders has resulted in accelerated restaurant development and continued system-wide sales growth at both of our iconic brands, TIM HORTONS and BURGER KING. We are excited about our progress this year and are committed to building on these results to achieve long-term sustainable growth.”
Operating cash flow improves
Restaurant Brands International has generated cash of $1,269 million from operating activities during the year, up 5.33 percent or $64.20 million, when compared with the last year. Cash flow from investing activities was $26.90 million from investing activities during the year as against cash outgo of $61.50 million in the last year. It has incurred net capital expenditure of $3.70 million on net basis during the year, down 96.13 percent or $92 million from year ago.
The company has spent $590.90 million cash to carry out financing activities during the year as against cash outgo of $2,115.20 million in the last year period.
Cash and cash equivalents stood at $1,460.40 million as on Dec. 31, 2016, up 92.72 percent or $702.60 million from $757.80 million on Dec. 31, 2015.
Working capital increases sharply
Restaurant Brands International has recorded an increase in the working capital over the last year. It stood at $886.30 million as at Dec. 31, 2016, up 258.68 percent or $639.20 million from $247.10 million on Dec. 31, 2015. Current ratio was at 1.73 as on Dec. 31, 2016, up from 1.22 on Dec. 31, 2015.
Debt remains almost stable
Total debt of Restaurant Brands International remained almost stable for the quarter at $8,722.50 million, when compared with the last year period. Total debt was 45.61 percent of total assets as on Dec. 31, 2016, compared with 47.38 percent on Dec. 31, 2015. Interest coverage ratio improved to 4.19 for the quarter from 2.78 for the same period last year.
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