OAKVILLE, Ont. — Restaurant Brands International Inc. (RBI) has released financial results for the second quarter ended June 30, 2018.
Results for the quarter revealed 2.2-per-cent system-wide sales growth and three-per-cent net restaurant growth for the Tim Hortons brand. Burger King and Popeyes saw system-wide sales growth of 8.4 per cent and 10.7 per cent respectively, as well as net restaurant growth of 6.4 per cent and 7.5 per cent respectively.
“During the second quarter, we continued to grow each of our three iconic brands, and we made good progress against the 2018 priorities that we outlined last quarter,” said Daniel Schwartz, CEO of RBI. “We are very optimistic about the long-term growth potential for each of our brands and remain focused on driving improved guest satisfaction and franchisee profitability.”
During an investor conference call, Schwartz also provided an update on the progress under Tim Hortons’ “Winning Together” plan, which is focused on improving guest satisfaction and franchisee profitability through a focus on improving product excellence, restaurant experience and brand communication.
“As it relates to product excellence, we are focused on a number of important initiatives, including Breakfast Anytime, which we officially launched across all of Canada last week,” said Schwartz, who explained that the launch was driven by third-party research that confirmed customer demand for the offering. “We learned [that] our Breakfast-Anytime program appealed to roughly 75 per cent of respondents and roughly 60 per cent of our guests indicated they would likely buy a breakfast sandwich after noon.”
Schwartz also highlighted franchisee response to the brand’s new Welcome Image, indicating that “more than one third of our Canadian franchisees signed up more than 650 restaurants to complete a remodel in 2018 or 2019,” within weeks of the initiative’s launch.
On the brand-communications front, Schwartz noted that in-store-signage and packaging updates have been taking place in Canada and are set to continue through the balance of the year. “Also under our brand-communications pillar, we have improved the frequency and the quality of our communication with franchisees and the media,” he explained.
The brand has been holding regional franchisee town halls and biweekly all-franchisee calls to provide updates on the Winning Together plan in an effort to improve franchisee relations. “This improved frequency and quality of communication with our franchisees has helped to further bolster support within the Tim Hortons system,” Schwartz said.
During the brand update, Schwartz also reiterated plans to strengthen Tim Hortons’ Canadian distribution network and launch new offerings, including a loyalty program, kids’ menu and delivery through Skip the Dishes.