RBI achieves consolidated 2018 system-wide sales growth of 7.4%, and increases 2019 dividend target by 11%TIM HORTONS® comparable sales in Canada accelerates in Q4 to 2.2%, driven by the 'Winning Together' planBURGER KING® delivers strong global net restaurant growth, with 2018 net openings of over 1,000 restaurantsPOPEYES® continues double-digit profitability growth through accelerated restaurant expansion

TORONTO, Feb. 11, 2019 /PRNewswire/ - Restaurant Brands International Inc. (TSX/NYSE: QSR, TSX: QSP) today reported financial results for the full year and fourth quarter ended December 31, 2018.

Jose Cil, Chief Executive Officer of Restaurant Brands International Inc. ("RBI") commented, "I am pleased to report that our business continued to deliver strong system-wide sales growth in 2018, driven by acceleration of net restaurant growth at Burger King and Popeyes and improved momentum in comparable sales at Tim Hortons through our 'Winning Together' plan. We have demonstrated our increased focus on technology and made notable progress against many of our initiatives including delivery, kiosks, and mobile app development. Throughout the year, we continued to maintain a balanced approach to capital allocation through our increased dividend, share repurchases, and reinvestment in our brands, illustrating our confidence in the long-term growth potential of our business. We remain focused on further growing franchisee profitability and improving guest experience, which we believe will drive value for all of our stakeholders for many years to come."

2018 Growth and Profitability Highlights:

• System-wide Sales Growth of 7.4%
• Net Restaurant Growth of 5.5%
• Diluted EPS of $2.42 versus $2.54 in prior year
• Adjusted Diluted EPS of $2.63 versus $2.10 in prior year
• Net Income Attributable to Common Shareholders and Noncontrolling Interests of $1,143 million versus $1,211 million in prior year
• Adjusted EBITDA of $2,212 million increased 4.1% organically versus the prior year on a combined basis (including a full year of Popeyes in both periods)

Dividend Update:

• RBI announced that its board of directors declared a dividend of $0.50 per common share and partnership exchangeable unit of Restaurant Brands International Limited Partnership ("RBI LP") for the first quarter of 2019
• In connection with the declared dividend, RBI also announced that it is targeting a total of $2.00 in dividends per common share and partnership exchangeable unit of RBI LP for 2019

Consolidated Operational Highlights

Note: System-wide sales growth and comparable sales are calculated on a constant currency basis and include sales at franchise restaurants and company-owned restaurants. System-wide sales are driven by sales at franchise restaurants, as approximately 100% of current restaurants are franchised. We do not record franchise sales as revenues; however, our franchise revenues include royalties based on a percentage of franchise sales. For the twelve months ended December 31, 2017, PLK and consolidated figures are shown for informational purposes only.

Consolidated Financial Highlights

Since RBI's consolidated results include Popeyes starting in Q2 of 2017 (post acquisition), RBI's consolidated year-over-year results for the twelve months ended December 31, 2018 are favorably impacted by the inclusion of a full year of Popeyes in 2018 and only a partial year in 2017.

Additionally, effective January 1, 2018, we adopted the new revenue recognition accounting standard ("New Standard"). Our consolidated financial statements for 2018 reflect the application of the New Standard, while our consolidated financial statements for 2017 were prepared under the guidance of previously applicable accounting standards ("Previous Standards"). Our results presented herein indicate which revenue recognition methodology applies in each respective period.

The implementation of the New Standard impacted our year-over-year results on a consolidated basis and for each segment as follows:

• Total Revenues increased primarily as a result of the inclusion of advertising fund contributions
• Selling, General, and Administrative Expenses increased as a result of the inclusion of advertising fund expenditures

The year-over-year change in Combined Total Revenues on an organic basis primarily reflects a decrease in company restaurant revenue (VIE deconsolidation at TH and refranchising activity at BK and PLK) and a decrease in supply chain related sales at TH in the first half of 2018, partially offset by growth in system-wide sales.

Under both the New Standard and Previous Standards, the decrease in Net Income Attributable to Common Shareholders and Noncontrolling Interests for the year and fourth quarter was driven by an increase in income tax expense, and for the fourth quarter, the redemption of our preferred shares in December of 2017.

The year-over year change in Combined Adjusted EBITDA on an organic basis primarily reflects growth in system-wide sales, partially offset by a decrease in supply chain related income at TH in the first half of 2018.

TH Segment Results

For the year and fourth quarter, system-wide sales growth was primarily driven by net restaurant growth of 2.1%. Comparable sales were 0.6% and 1.9%, including Canada comparable sales of 0.9% and 2.2%, for the year and fourth quarter, respectively.

The year-over-year change in Total Revenues on an organic basis reflects a decrease in company restaurant revenue (VIE deconsolidation) and a decrease in supply chain related sales in the first half of 2018, partially offset by growth in system-wide sales.

The year-over-year change in Adjusted EBITDA on an organic basis reflects growth in system-wide sales, partially offset by a decrease in supply chain related income in the first half of 2018.

BK Segment Results

For the year and fourth quarter, system-wide sales growth was primarily driven by net restaurant growth of 6.1% as well as comparable sales of 2.0% and 1.7%, respectively, including US comparable sales of 1.4% and 0.8%, respectively.

The year-over-year change in Total Revenues on an organic basis reflects system-wide sales growth, partially offset by a decrease in company restaurant revenue (related to refranchisings) and a decrease in franchise related fees.

The year-over-year change in Adjusted EBITDA on an organic basis reflects growth in system-wide sales, partially offset by a decrease in franchise related fees.

PLK Segment Results

For the year and fourth quarter, system-wide sales growth was primarily driven by net restaurant growth of 7.3%. For the year and fourth quarter, comparable sales were 1.6% and 0.1%, respectively, including US comparable sales of 0.9% and (0.1)%, respectively.

The year-over-year change in Combined Total Revenues on an organic basis reflects system-wide sales growth, partially offset by a decrease in company restaurant revenue (related to refranchisings).

The year-over-year change in Combined Adjusted EBITDA on an organic basis reflects growth in system-wide sales, and for the full year, effective cost management.

Cash and Liquidity

As of December 31, 2018, total debt was $12.3 billion, net debt (total debt less cash and cash equivalents of $0.9 billion) was $11.4 billion, and net leverage was 5.1x. During the fourth quarter, we completed the previously announced repurchase of 10 million partnership exchangeable units for approximately $561 million. The RBI board of directors has declared a dividend of $0.50 per common share and partnership exchangeable unit of RBI LP for the first quarter of 2019. The dividend will be payable on April 3, 2019 to shareholders and unitholders of record at the close of business on March 15, 2019. In connection with the declared dividend, RBI also announced that it is targeting a total of $2.00 in dividends per common share and partnership exchangeable unit of RBI LP for 2019.

Investor Conference Call

We will host an investor conference call and webcast at 8:30 a.m. Eastern Time on Monday, February 11, 2019, to review financial results for the full year and fourth quarter ended December 31, 2018. The earnings call will be broadcast live via our investor relations website at http://investor.rbi.com and a replay will be available for 30 days following the release. The dial-in number is (877) 317-6711 for U.S. callers, (866) 450-4696 for Canadian callers, and (412) 317-5475 for callers from other countries.

Investor Day

We will hold an Investor Day Conference on May 15, 2019 in New York City. Attendance will be by invitation only, and the conference will be broadcast live via our investor relations website at http://investor.rbi.com. For additional information about the conference, please email [email protected].

About Restaurant Brands International Inc.

Restaurant Brands International Inc. ("RBI") is one of the world's largest quick service restaurant companies with more than $30 billion in system-wide sales and over 25,000 restaurants in more than 100 countries and U.S. territories. RBI owns three of the world's most prominent and iconic quick service restaurant brands – TIM HORTONS®, BURGER KING®, and POPEYES®. These independently operated brands have been serving their respective guests, franchisees and communities for over 45 years. To learn more about RBI, please visit the company's website at www.rbi.com.

Forward-Looking Statements

This press release contains certain forward-looking statements and information, which reflect management's current beliefs and expectations regarding future events and operating performance and speak only as of the date hereof. These forward-looking statements are not guarantees of future performance and involve a number of risks and uncertainties. These forward-looking statements include statements about our expectations regarding our confidence in the long-term growth potential of our business; our focus on growing franchisee profitability and improving guest experience as drivers of long-term value for all of our stakeholders; the incurrence of PLK transaction costs; and our target total dividend for 2019. The factors that could cause actual results to differ materially from RBI's expectations are detailed in filings of RBI with the Securities and Exchange Commission and applicable Canadian securities regulatory authorities, such as its annual and quarterly reports and current reports on Form 8-K, and include the following: risks related to our ability to successfully implement our domestic and international growth strategy; risks related to our ability to compete domestically and internationally in an intensely competitive industry; and risks related to our ability to generate sufficient liquidity to achieve our target total dividend for 2019 and satisfy our debt service and other obligations. Other than as required under U.S. federal securities laws or Canadian securities laws, we do not assume a duty to update these forward-looking statements, whether as a result of new information, subsequent events or circumstances, change in expectations or otherwise.

RESTAURANT BRANDS INTERNATIONAL INC. AND SUBSIDIARIESCondensed Consolidated Statements of Operations(In millions of U.S. dollars, except per share data)(Unaudited)

RESTAURANT BRANDS INTERNATIONAL INC. AND SUBSIDIARIESCondensed Consolidated Statements of Operations(In millions of U.S. dollars, except per share data)(Unaudited)

RESTAURANT BRANDS INTERNATIONAL INC. AND SUBSIDIARIESCondensed Consolidated Balance Sheets(In millions of U.S. dollars, except share data)(Unaudited)

RESTAURANT BRANDS INTERNATIONAL INC. AND SUBSIDIARIESCondensed Consolidated Statements of Cash Flows(In millions of U.S. dollars)(Unaudited)

RESTAURANT BRANDS INTERNATIONAL INC. AND SUBSIDIARIESKey Operating Metrics

We evaluate our restaurants and assess our business based on the following operating metrics.

System-wide sales growth refers to the percentage change in sales at all franchise and company-owned restaurants in one period from the same period in the prior year. Comparable sales refers to the percentage change in restaurant sales in one period from the same prior year period for restaurants that have been open for 13 months or longer for TH and BK and 17 months or longer for PLK. System-wide sales growth and comparable sales are measured on a constant currency basis, which means that results exclude the effect of foreign currency translation and are calculated by translating prior year results at current year monthly average exchange rates. We analyze key operating metrics on a constant currency basis as this helps identify underlying business trends, without distortion from the effects of currency movements.

System-wide sales represent sales at all franchise restaurants and company-owned restaurants. We do not record franchise sales as revenues; however, our franchise revenues include royalties based on a percentage of franchise sales.

Net restaurant growth refers to the net increase in restaurant count (openings, net of closures) over a trailing twelve month period, divided by the restaurant count at the beginning of the trailing twelve month period.

For 2017, PLK comparable sales, system-wide sales growth and system-wide sales are for the period from October 1, 2017 through December 31, 2017 and from December 26, 2016 through December 31, 2017 for the three and twelve months ended December 31, 2017, respectively. Comparable sales and system-wide sales growth are calculated using the same period in the prior year (October 1, 2016 through December 31, 2016 and December 26, 2015 through December 31, 2016). For 2017, PLK net restaurant growth is for the period from December 26, 2016 through December 31, 2017.

RESTAURANT BRANDS INTERNATIONAL INC. AND SUBSIDIARIESSupplemental Disclosure(Unaudited)

Selling, General and Administrative Expenses

Other Operating Expenses (Income), net

RESTAURANT BRANDS INTERNATIONAL INC. AND SUBSIDIARIESNon-GAAP Financial Measures(Unaudited)

Below, we define the non-GAAP financial measures, provide a reconciliation of each non-GAAP financial measure to the most directly comparable financial measure calculated in accordance with U.S. Generally Accepted Accounting Principles ("GAAP"), and discuss the reasons why we believe this information is useful to management and may be useful to investors. These measures do not have standardized meanings under GAAP and may differ from similarly captioned measures of other companies in our industry.

To supplement our condensed consolidated financial statements presented on a GAAP basis, RBI reports the following non-GAAP financial measures: EBITDA, Adjusted EBITDA, Adjusted Net Income, Adjusted Diluted Earnings per Share ("Adjusted Diluted EPS"), Combined Total Revenues, Combined Adjusted EBITDA, Organic revenue growth, Organic Adjusted EBITDA growth, and Net Leverage. We believe that these non-GAAP measures are useful to investors in assessing our operating performance, as it provides them with the same tools that management uses to evaluate our performance and is responsive to questions we receive from both investors and analysts. By disclosing these non-GAAP measures, we intend to provide investors with a consistent comparison of our operating results and trends for the periods presented.

EBITDA is defined as earnings (net income or loss) before interest expense, net, (gain) loss on early extinguishment of debt, income tax (benefit) expense, and depreciation and amortization and is used by management to measure operating performance of the business. Adjusted EBITDA is defined as EBITDA excluding the non-cash impact of share-based compensation and non-cash incentive compensation expense and (income) loss from equity method investments, net of cash distributions received from equity method investments, as well as other operating expenses (income), net. Other specifically identified costs associated with non-recurring projects are also excluded from Adjusted EBITDA, including PLK transaction costs associated with the acquisition of Popeyes, corporate restructuring and tax advisory fees, and office centralization and relocation costs. Adjusted EBITDA is used by management to measure operating performance of the business, excluding these non-cash and other specifically identified items that management believes are not relevant to management's assessment of operating performance or the performance of an acquired business. Adjusted EBITDA, as defined above, also represents our measure of segment income for each of our three operating segments.

Combined Total Revenues and Combined Adjusted EBITDA include results of PLK prior to the acquisition.

Adjusted Net Income is defined as net income excluding (i) franchise agreement amortization, which is a non-cash expense arising as a result of acquisition accounting that may hinder the comparability of our operating results to our industry peers, (ii) amortization of deferred financing costs and debt issuance discount, a non-cash component of interest expense, and (gains) losses on early extinguishment of debt, which are non-cash charges that vary by the timing, terms and size of debt financing transactions, (iii) (income) loss from equity method investments, net of cash distributions received from equity method investments, (iv) other operating expenses (income), net, and (v) other specifically identified costs associated with non-recurring projects. Adjusted Net Income includes preferred share dividends through December 2017.

Adjusted Diluted EPS is calculated by dividing Adjusted Net Income by the number of diluted shares of RBI during the reporting period. Adjusted Net Income and Adjusted Diluted EPS are used by management to evaluate the operating performance of the business, excluding certain non-cash and other specifically identified items that management believes are not relevant to management's assessment of operating performance or the performance of an acquired business.

Net Leverage is defined as net debt (total debt less cash and cash equivalents) divided by Adjusted EBITDA. Net Leverage is a performance measure that we believe provides investors a more complete understanding of our leverage position and borrowing capacity after factoring in cash and cash equivalents that eventually could be used to repay outstanding debt.

Revenue growth and Adjusted EBITDA growth, on an organic basis, are non-GAAP measures that exclude the impact of FX movements. Management believes that organic growth is an important metric for measuring the operating performance of our business as it helps identify underlying business trends, without distortion from the effects of FX movements. We calculate the impact of FX movements by translating prior year results at current year monthly average exchange rates. In addition, for organic growth comparative purposes, we are presenting PLK pre- and post-combination results, including Popeyes' pre-combination Adjusted EBITDA determined in accordance with RBI's methodology as reflected in the reconciliation table. Additionally, for comparability purposes, we are calculating organic growth under Previous Standards for both periods presented.

RESTAURANT BRANDS INTERNATIONAL INC. AND SUBSIDIARIESNon-GAAP Financial MeasuresOrganic Growth in Revenue and Adjusted EBITDA(Unaudited)

Three Months Ended December 31, 2018

Twelve Months Ended December 31, 2018

RESTAURANT BRANDS INTERNATIONAL INC. AND SUBSIDIARIESNon-GAAP Financial MeasuresReconciliation of EBITDA and Adjusted EBITDA to Net Income(Unaudited)

RESTAURANT BRANDS INTERNATIONAL INC. AND SUBSIDIARIESNon-GAAP Financial MeasuresReconciliation of Net Income to Adjusted Net Income and Adjusted Diluted EPS(Unaudited)

RESTAURANT BRANDS INTERNATIONAL INC. AND SUBSIDIARIESNon-GAAP Financial MeasuresReconciliation of Adjusted EBITDA to Net Income(Unaudited)

Historical Popeyes Adjusted EBITDA

RESTAURANT BRANDS INTERNATIONAL INC. AND SUBSIDIARIESNon-GAAP Financial MeasuresReconciliation of Net Leverage and Free Cash Flow(Unaudited)

Non-GAAP Financial MeasuresFootnotes to Reconciliation Tables

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