Restaurant Brands International is headed for success in 2019

Following Restaurant Brands International’s full year and Q4 2018 results, Lewis Towell, Consumer Analyst at GlobalData, offers his view:

“2018 was a year which saw the company playing catch up with competitors, implementing all day breakfasts in Tim Hortons, rolling out delivery, and trying to expand all of its brands more aggressively using its franchising model, with Popeyes seeking expansion in areas such as the Philippines.

“The full year results suggest that the company is starting to see the benefits of these decisions. However, Tim Hortons’ results continue to cause pause for thought, especially in the US. With the fast food and coffee market in the US so rich in world famous brands that are facing a lot of small, innovative brands, it takes more for larger brands to do well there. Until they deliver something unique, it is going to be difficult to turn consumers’ heads. Nevertheless, Tim Hortons and Restaurant Brands International as a whole are headed in the right direction.

“The company has done well to cater to local tastes when introducing Tim Hortons abroad while maintaining products which are synonymous with the brand, such as offering tostadas for breakfast in Spain alongside its regular menu. It has also successfully began shifting its franchises toward the new normal in fast food, with kiosks, delivery and loyalty schemes all seeming to help keep sales headed in the right direction. All of this indicates that the company is headed in the right direction and should continue to reap the benefits of the changes it has implemented in the first half of 2019.”

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