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QSR Restaurant Brands International

Filed: 2 Jun 21, 8:12am

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): June 2, 2021
 RESTAURANT BRANDS INTERNATIONAL INC.
RESTAURANT BRANDS INTERNATIONAL LIMITED PARTNERSHIP
(Exact name of registrant as specified in its charter)

Canada001-3678698-1202754
Ontario 001-3678798-1206431
(State or other jurisdiction of (Commission(I.R.S. Employer
incorporation) File Number)Identification No.)

130 King Street West, Suite 300 M5X 1E1
Toronto,Ontario
(Address of Principal Executive Offices) (Zip Code)
(905) 339-6011
(Registrant’s telephone number, including area code)
N/A
(Former name or former address, if changed since last report)
Securities registered pursuant to Section 12(b) of the Act:
Title of each class Trading SymbolsName of each exchange on which registered
Common Shares, without par value QSRNew York Stock Exchange
 Toronto Stock Exchange
Securities registered pursuant to Section 12(g) of the Act:
Title of each class Trading SymbolsName of each exchange on which registered
Class B exchangeable limited partnership unitsQSPToronto Stock Exchange
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
    Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
    Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
    Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
    Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐



Item 7.01     Regulation FD.

Restaurant Brands International Inc. (the Company) intends to share the following information, or portions thereof, with investors.

As disclosed in Note 2 to the Company’s Form 10-Q filed on April 30, 2021 for period ended March 31, 2021, certain prior year amounts in the statement of operations and accompanying segment results have been reclassified in order to be comparable with the current year classifications. These consist of the reclassification of advertising fund contributions from Franchise and property revenues to Advertising revenues and advertising fund expenses from Selling, general and administrative expenses to Advertising expenses, with General and administrative expenses now presented separately. Depreciation and amortization expenses related to the advertising funds have also been reclassified from Franchise and property expenses to Advertising expenses. These reclassifications did not arise as a result of any changes to accounting policies and relate entirely to presentation with no effect on previously reported net income. The following information reflects these reclassifications in the results of operations for each quarter of 2020 and for the full year 2020.
Results of Operations for each quarter of 2020 and full year 2020
Tabular amounts in millions of U.S. dollars unless noted otherwise. Segment income may not calculate exactly due to rounding.
ConsolidatedThree months endedYear ended
Mar. 31June 30Sep. 30Dec. 31Dec. 31
Revenues:
Sales$503 $406 $541 $563 $2,013 
Franchise and property revenues525 450 577 569 2,121 
Advertising revenues197 192 219 226 834 
Total revenues1,225 1,048 1,337 1,358 4,968 
Operating costs and expenses:
Cost of sales399 339 418 454 1,610 
Franchise and property expenses123 132 125 135 515 
Advertising expenses226 203 209 232 870 
General and administrative expenses102 94 96 115 407 
(Income) loss from equity method investments16 18 39 
Other operating expenses (income), net(16)21 54 46 105 
Total operating costs and expenses836 805 920 985 3,546 
Income from operations389 243 417 373 1,422 
Interest expense, net119 128 129 132 508 
Loss on early extinguishment of debt— — — 98 98 
Income before income taxes270 115 288 143 816 
Income tax expense46 (49)65 66 
Net income$224 $164 $223 $139 $750 




TH SegmentThree months endedYear ended
Mar. 31June 30Sep. 30Dec. 31Dec. 31
Revenues:
Sales$465 $374 $506 $531 $1,876 
Franchise and property revenues188 154 205 198 745 
Advertising revenues46 39 51 53 189 
Total revenues699 567 762 782 2,810 
Cost of sales366 307 388 423 1,484 
Franchise and property expenses81 81 80 86 328 
Advertising expenses65 43 46 50 204 
Segment G&A25 20 20 28 93 
Segment depreciation and amortization (a)26 28 28 31 113 
Segment income (b)189 147 258 229 823 
(a)Segment depreciation and amortization consists of depreciation and amortization included in cost of sales, franchise and property expenses and advertising expenses.
(b)TH segment income includes $2 million, $2 million, $2 million and $3 million of cash distributions received from equity method investments for the three months ended March 31, June 30, September 30 and December 31, 2020, respectively, and $9 million for the full year 2020.

BK SegmentThree months endedYear ended
Mar. 31June 30Sep. 30Dec. 31Dec. 31
Revenues:
Sales$17 $15 $17 $15 $64 
Franchise and property revenues273 233 305 302 1,113 
Advertising revenues98 99 111 117 425 
Total revenues388 347 433 434 1,602 
Cost of sales17 16 16 16 65 
Franchise and property expenses39 48 42 47 176 
Advertising expenses108 105 105 124 442 
Segment G&A37 30 37 42 146 
Segment depreciation and amortization (a)12 12 13 12 49 
Segment income200 160 245 218 823 

PLK SegmentThree months endedYear ended
Mar. 31June 30Sep. 30Dec. 31Dec. 31
Revenues:
Sales$21 $17 $18 $17 $73 
Franchise and property revenues64 63 67 69 263 
Advertising revenues53 54 57 56 220 
Total revenues138 134 142 142 556 
Cost of sales16 16 14 15 61 
Franchise and property expenses11 
Advertising expenses53 55 58 58 224 
Segment G&A13 10 12 14 49 
Segment depreciation and amortization (a)
Segment income55 51 58 54 218 





General and Administrative Expenses
Our general and administrative expenses consisted of the following:
Three months endedYear ended
Mar. 31June 30Sep. 30Dec. 31Dec. 31
Segment G&A:
TH$25 $20 $20 $28 $93 
BK37 30 37 42 146 
PLK13 10 12 14 49 
Share-based compensation and non-cash incentive compensation expense21 23 19 21 84 
Depreciation and amortization19 
Corporate restructuring and tax advisory fees16 
General and administrative expenses$102 $94 $96 $115 $407 




SIGNATURES
    Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
 
 RESTAURANT BRANDS INTERNATIONAL INC.
RESTAURANT BRANDS INTERNATIONAL LIMITED PARTNERSHIP, by its general partner RESTAURANT BRANDS INTERNATIONAL INC.
Date: June 2, 2021 /s/ Jill Granat
 Name:Jill Granat
 Title:General Counsel and Corporate Secretary