Restaurant Brands aims to reach mid-4x debt ratio within three years

By Devika Patel

Knoxville, Tenn., Feb. 14 – Restaurant Brands International Inc. reported a net leverage ratio of 5.1x as of Dec. 31, 2022, and management plans to keep deleveraging until the company reaches a net leverage ratio in the mid-4x area, which is expected within three years.

“We ended the year with a liquidity position of approximately $2.2 billion and saw our net leverage sequentially decline to 5.1x, keeping us on track to reach our target net leverage ratio of the mid-4x area over the next two to three years,” chief financial officer Matthew Dunnigan said on the company’s fourth quarter and year ended Dec. 31, 2022 earnings conference call on Tuesday.

“In the near term, we intend to prioritize de-levering and believe a mid-4x net leverage ratio will provide us with plenty of flexibility to execute on both organic and strategic opportunities in the future with the added benefit of reducing our cost of debt over time,” he said.

Cash and cash equivalents were $1,178,000,000 as of Dec. 31, 2022, compared to $1,087,000,000 as of Dec. 31, 2021.

Long-term debt, net of current portion, was $12,839,000,000 as of Dec. 31, 2022, compared to $12,916,000,000 as of Dec. 31, 2021.

Current portion of long-term debt and finance obligations was $127 million as of Dec. 31, 2022, compared to $96 million as of Dec. 31, 2021.

Restaurant Brands is a Toronto-based quick service restaurant company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.