TORONTO — Restaurant Brands International Inc. has appointed Patrick Doyle as the company’s executive chairman, effective immediately. The Board of Directors believe that Doyle will be an important contributor to unlocking growth in the company based on his proven track record doing the same at Domino’s Pizza.
“Patrick’s appointment as executive chairman is a huge addition to the already strong leadership team that we have built over the past few years. This is part of our long-term strategy to accelerate growth in our restaurant brands and profitability for our franchisees and drive shareholder returns that we believe the company is very capable of delivering,” says Daniel Schwartz, current co-chairman of the Board of Directors and former CEO and executive chairman of RBI. He is also a co-founder of 3G Capital.
The appointment follows significant progress and investments at Tim Hortons Canada and Burger King U.S.; strong systemwide sales growth at Burger King internationally and Popeyes; the acquisition of Firehouse Subs; and returning to historical global unit growth.
As the former CEO of Domino’s Pizza from 2010 to 2018, Doyle led one of the restaurant industry’s most successful transformations by focusing on putting the guest experience first and being the best at digital ordering and food quality. During his tenure, he delivered 29 consecutive quarters of same-store sale increases, systemwide sales growth of $5.6 billion to $13 billion, a more than two-times increase in home market franchisee profitability while creating approximately $11 billion of shareholder value and increasing the share price more than 23 times from nearly $12 in March 2010 to $271 in June 2018.
Schwartz and Alex Behring will continue to serve on the Board of Directors, demonstrating 3G Capital’s commitment to being a long-term shareholder in RBI. Behring is a co-founder of 3G Capital and is currently co-managing partner.
“I’m excited to work closely with Patrick and our leadership team to build the most loved restaurant brands in the world. This includes our intention to rapidly accelerate growth in the company and deliver on plans that result in exceptional service for our guests; and excellent returns for our franchisees and for all shareholders,” says Jose Cil, CEO of RBI.
“I love the restaurant industry. These are four exceptional brands with real opportunities for accelerated growth. Working closely with each of the brands’ franchisees, with Jose, the whole RBI team, and the Board of Directors, I am confident we can create one of the most compelling growth stories in the industry,” says Doyle.
Doyle will make a personal investment to purchase 500,000 RBI shares for a value of approximately $30 million and has agreed to maintain his investment for five years, subject to certain conditions, demonstrating his confidence in the shareholder value he is being retained to help create. The purchase is subject to regulatory approvals.
In addition, Doyle will receive a one-time equity package of 2,000,000 options granted at fair market value, vesting in five years; 500,000 restricted share units vesting ratably over five years; and 750,000 performance share units vesting in 5.5 years, with a 100-per-cent target performance tied to a roughly 10 per cent compound annualized return in RBI’s share price over five years.
RBI’s Board of Directors believes Doyle’s compensation package reflects his unmatched performance as one of the world’s most successful QSR leaders and is fully aligned with shareholder interests as benefits are substantially realized upon significant improvement in company performance.
The Board also noted that the company’s path to profitable, long-term growth needs to be rooted in the continued success of our restaurants, including enhancing the guest experience, growing franchisee profitability and driving digital sales. Cil, his direct reports and their leadership teams across all four brands share compensation performance criteria related to comparable sales, net restaurant growth and Organic EBITDA growth as well as individual achievement criteria which may include franchisee profitability, guest satisfaction levels and digital sales targets.