TORONTO - Restaurant Brands International Inc. (TSX: NYSE:QSR) (NYSE: QSR) (TSX: QSP), along with 1011778 B.C. Unlimited Liability Company and New Red Finance, Inc., announced the launch of a $1 billion offering of First Lien Senior Secured Notes due 2029 today. The offering is aimed at refinancing a portion of the Issuers' existing term loan B facility and covering related fees and expenses. Any remaining funds are intended for general corporate purposes.
The Notes, which are to mature in 2029, will be secured obligations of the Issuers, with guarantees from Restaurant Brands International Limited Partnership and its wholly-owned subsidiaries that also guarantee the Issuers' obligations under their existing senior secured credit facilities.
This debt offering is structured to target qualified institutional buyers in the United States under Rule 144A of the Securities Act of 1933, as amended, and to investors outside the U.S. under Regulation S of the same act. The securities have not been registered under the Securities Act and are subject to restrictions on their sale in the U.S.
Restaurant Brands International is one of the largest quick-service restaurant companies globally, with more than $40 billion in annual system-wide sales and over 30,000 restaurants across more than 120 countries.
The company owns TIM HORTONS®, BURGER KING®, POPEYES®, and FIREHOUSE SUBS®. RBI's Restaurant Brands for Good framework focuses on sustainable outcomes related to food, the planet, and people and communities.
The press release includes forward-looking statements regarding the issuance of the Notes and the anticipated use of the proceeds. Still, actual results could differ materially due to various risk factors, including economic conditions, franchisee relationships, market interest rates, and global events such as pandemics. These risks are detailed in RBI's filings with the U.S. Securities and Exchange Commission and on SEDAR+ in Canada.
The information for this article is based on a press release statement from Restaurant Brands International Inc.
In other recent news, Restaurant Brands International has been making significant strides in its business operations. TD Cowen reaffirmed its Buy rating on the company, highlighting the strategic approach of Burger King and the positive developments at Tim Hortons. Deutsche Bank and KeyBanc Capital Markets have also shown confidence in the company, raising their price targets following strong Q1 sales.
Restaurant Brands recently announced the completion of its acquisition of Carrols Restaurant Group (NASDAQ:TAST), the largest Burger King franchisee in the United States. The acquisition is part of the company's "Reclaim the Flame" plan, which includes a significant investment to revamp over 600 Carrols restaurants.
The company also unveiled a new $5 value meal deal at Burger King, a strategic move aimed at attracting cost-conscious consumers. This is a recent development that reflects the company's effort to stay competitive in the fast-food market.
These initiatives, along with the strong financial performance in Q1, indicate a positive outlook for Restaurant Brands International. However, these are recent developments, and the future performance of the company will depend on various factors, including market conditions and the successful execution of its strategies.
InvestingPro Insights
As Restaurant Brands International Inc. (NYSE: QSR) embarks on a strategic move to refinance its existing debt, investors may find the company's financial health and market performance to be of particular interest.
According to InvestingPro, QSR has demonstrated a commitment to shareholder returns, having raised its dividend for 9 consecutive years and maintaining dividend payments for 10 consecutive years. Such consistency could be interpreted as a sign of financial stability and a shareholder-friendly approach.
In terms of valuation, QSR's stock is currently trading at a P/E ratio of 18.03, with an adjusted P/E ratio over the last twelve months as of Q1 2024 at 17.56. This positions the company attractively relative to near-term earnings growth. Additionally, the stock is known to exhibit low price volatility, which might appeal to investors seeking a more stable equity in the quick-service restaurant sector.
InvestingPro data also highlights that QSR's revenue growth over the last twelve months as of Q1 2024 was 7.93%, with a quarterly increase of 9.37% in Q1 2024. The company's gross profit margin stands at a robust 39.77%, underscoring its ability to translate sales into profit effectively.
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