TORONTO — Restaurant Brands International Inc. (RBI) has revised its segment reporting for the fiscal year 2023. Beginning the fourth quarter of 2023, RBI will separate its segments’ reporting in a move leadership said reflects how they intend to oversee the brands. 

The company restructured its business segments to reflect its new organizational structure, which includes five primary segments: Tim Hortons, Burger King, Firehouse Subs, Popeyes Louisiana Kitchen and International. International encompasses the aggregated outcomes from the operations of each brand outside the United States and Canada.

RBI’s previous segment reporting included two segments: Tim Hortons and Burger King. RBI’s new segment reporting will give investors a more detailed view of the company’s performance and growth prospects, the company said.

Tim Hortons is the largest segment, accounting for 45% of the company’s total revenue, according to RBI’s revised segment reporting. Burger King is the second-largest segment, at 35%; Popeyes is the smallest segment, with 20% of the company’s total revenue. RBI’s segment reporting also includes information on each segment’s operating income, capital expenditures, depreciation and amortization expenses.

RBI altered its measurement of segment income, shifting from adjusted EBITDA to adjusted operating income (AOI). In contrast to adjusted EBITDA, AOI accounts for depreciation and amortization (excluding amortization of franchise agreements), along with share-based compensation and non-cash incentive compensation expenses. RBI will maintain reporting of adjusted EBITDA at both consolidated and individual segment levels for additional reference.

RBI’s segment reporting will provide investors with a more detailed view of the company’s performance and growth prospects, which could help the company attract new investors and improve its stock price, said Matthew Dunnigan, chief financial officer, RBI. 

“Our business leaders are prioritizing investments that will drive long-term growth and attractive returns for our shareholders,” Dunnigan said. “Our transition to AOI will provide increased focus on all the operating expenses associated with these investments and add greater accountability for delivering strong returns through profitability growth over time.”

RBI has provided unaudited information, including 11 quarters of historical financial and operational data (first quarter of 2021 through third quarter of 2023) for its five reportable segments. Further information is available at rbi.com/investors.