Burger King Parent Company Has Ambitious Expansion Plans

RBI plans to build 40,000 new restaurants across multiple brands.

February 20, 2024

Last week, Restaurant Brands International Inc. (RBI) Chief Executive Officer Josh Kobza and Executive Chairman Patrick Doyle announced the long-term global growth outlook for Tim Hortons, Burger King, Popeyes and Firehouse Subs.

The company expects to achieve a minimum of 40,000 restaurants, $60 billion in system-wide sales and $3.2 billion in adjusted operating income by 2028. Those figures will be achieved by delivering average annual results over the next five years of 3% plus comparable sales, 5% plus net restaurant growth and 8% plus system-wide sales growth, translating to at least 8% adjusted operating income growth, according to RBI.

“Our four iconic brands have strong restaurant fundamentals and clear runways for growth,” said Kobza. "Our long-term investment horizon should … drive at least low double-digit annual total shareholder returns over the next five years."

Here’s a five-year outlook for the four brands, according to RBI:

Tim Hortons
Looking ahead to 2028, Tim Hortons will focus on growing the PM daypart beyond its 9% market share for 2023 through wraps, bowls, savory pastries, snacking and new product innovation. Tim Hortons is also planning growth in cold beverages—driven initially by cold brew, real fruit quenchers, specialty beverages and innovation around its Iced Capp. Tim Hortons U.S. business is expected to be the largest contributor of growth in its home markets, expecting to reach 1,000 restaurants by 2028.

Burger King
RBI has made a substantial financial commitment to shift the franchise system towards smaller operators who live close to their restaurants. Looking ahead to 2028, major growth drivers include accelerating to get 85% to 90% of the system to the Burger King modern image, driving incremental sales through remodels and effective marketing, and improving guest experience through training and operational excellence at the restaurant.

Moving towards 2028, the Popeyes brand will continue daypart and occasion expansion of its menu and focus on attracting more profitable digital guests and increasing its digital mix of sales. The brand will accelerate its emphasis on improving restaurant operations. Popeyes expects to grow its United States and Canada restaurant base from nearly 3,400 in 2023 to over 4,200 restaurants by 2028.

Firehouse Subs
For Firehouse Subs’ five-year outlook, the brand is expected  to scale its digital channels to 100% of sales over the next few years, improving speed of service through equipment innovation and accelerating net restaurant growth to ramp its pace of development, resulting in 800 new locations by 2028.