Restaurant Brands' (QSR) Firehouse Subs Unveils Expansion Plan
Restaurant Brands International Inc. QSR is set to expand its Firehouse Subs brand’s presence in the Middle East. Recently, the brand inked a deal with the Apparel Group to unveil over 100 Firehouse Subs restaurants across the United Arab Emirates (UAE) and Oman over the next 10 years.
The collaboration between QSR's Firehouse Subs and the Apparel Group is poised to enhance the brand's international reach. The Apparel Group has been a strong partner with its robust track record of managing the company's Tim Hortons brand in the Middle East/North Africa region (MENA) since 2013. QSR anticipates that the extensive experience and expertise of the Apparel Group will offer numerous advantages for the ongoing expansion of the brand.
Focus on Expansion
Restaurant Brands believes that there is a huge opportunity to grow all its brands worldwide by expanding its presence in existing markets and entering new markets. Currently, it has approximately 30,000 restaurants worldwide. Restaurant Brands also continues to evaluate opportunities to speed up the international development of all three brands by establishing master franchisees with exclusive development rights and joint ventures with new and existing franchisees.
During second-quarter 2023, QSR opened 169 net new restaurants, contributing to a 4.1% year-over-year growth in the overall restaurant count. QSR also initiated its global expansion, unveiling its first overseas Firehouse location in Zurich, Switzerland. As a robust and expanding player in the QSR's sandwich category, the brand has witnessed substantial growth over the past decade, with a presence of more than 1,200 restaurants spanning the United States and Canada.
Furthermore, the company is confident about the Tim Hortons brand’s long-term growth prospects and remains committed to deliver on its international growth strategy of expanding the brand worldwide.
QSR intends to evaluate opportunities to ramp up international development by establishing master franchisees with exclusive development rights and joint ventures with new and existing franchisees. The company is optimistic about growth opportunities in 2023 and remains on track to grow its restaurant base toward its long-term goal of 40,000 locations.
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Shares of QSR have increased 9.6% in the past year compared with the industry’s 3.5% rise.
Zacks Rank & Key Picks
Restaurant Brands currently carries a Zacks Rank #3 (Hold).
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