8-K: Restaurant Brands International Highlights Sustainability Efforts in 2024 'Restaurant Brands for Good' Report

Restaurant Brands International (RBI) released its 2024 'Restaurant Brands for Good' report, showcasing progress across its Food, Planet, and People & Communities pillars.

Summary

• Restaurant Brands International (RBI) released its 2024 Restaurant Brands for Good report, highlighting its sustainability efforts across its four brands: Tim Hortons, Burger King, Popeyes, and Firehouse Subs.
• The report details progress in areas such as food safety, offering plant-based choices, climate action, nature and biodiversity, packaging and recycling, food waste reduction, and animal health and welfare.
• RBI is committed to reducing its environmental footprint and has set science-based targets to reduce Scope 1, 2, and 3 greenhouse gas (GHG) emissions.
• In 2024, RBI was named to the Dow Jones Best-in-Class North America Index for the third consecutive year.
• The Firehouse Subs Public Safety Foundation provided more than $11 million to first responders and public safety organizations, and more than C$44M was raised through Tim Hortons charitable campaigns.
• RBI's annual system-wide sales are nearly $45 billion with over 32,000 restaurants in more than 120 countries and territories.

Sentiment

Score: 8

Explanation: The document presents a positive outlook on RBI's sustainability efforts, highlighting achievements and ongoing goals. While there are some challenges noted, the overall tone is optimistic and forward-looking.

Positives

• RBI was named to the Dow Jones Sustainability North America Index for the third consecutive year.
• The Firehouse Subs Public Safety Foundation provided over $11 million to first responders and public safety organizations.
• Tim Hortons charitable campaigns raised over C$44 million.
• Burger King has plant-based menu items available in over 56 markets and 14,000 restaurants.
• Burger King U.S. recycled over 12 million pounds of used cooking oil, converting it into biofuels.
• 100% of the chicken supply for Burger King, Popeyes and Tim Hortons restaurants in the U.S. is raised without the use of antibiotics important to human medicine.
• As of March 2025, Burger King and Tim Hortons in the United States and Canada have achieved 99% compliance with their sow housing commitment.

Negatives

• RBI's Scope 1 emissions, excluding Carrols restaurants, increased by 27% in 2024 compared to the 2022 baseline, largely due to an increase of corporate-owned and operated restaurants.
• Various external factors, especially in North America, have posed significant challenges for suppliers and impacted their ability to meet the cage-free egg transition glidepath.

Risks

• Climate change and extreme weather events could affect key commodities in certain European regions.
• Deforestation poses a risk to RBI's supply chain.
• Water scarcity is a growing concern for the business.
• Highly Pathogenic Avian Influenza (HPAI) outbreaks can disrupt the supply of cage-free eggs.

Future Outlook

RBI aims to align its targets with the most current scientific guidance by monitoring updates from leading organizations like the SBTi and the GHG Protocol and is committed to delivering excellent quality, service, and convenience.

Management Comments

• Josh Kobza, CEO of Restaurant Brands International, stated that he is proud of the foundations built across the brands while growing the company responsibly.
• Kobza also expressed excitement about the advancements made with suppliers, restaurant owners, and guests, while acknowledging that there is more work to do.

Industry Context

RBI's sustainability efforts align with increasing consumer and investor focus on ESG factors within the quick-service restaurant industry, with competitors also setting targets for emissions reductions, sustainable sourcing, and waste reduction.

Comparison to Industry Standards

• McDonald's has committed to reducing GHG emissions by 36% by 2030 from a 2015 base year.
• Starbucks aims to reduce carbon emissions, water usage, and waste by 50% by 2030.
• Yum! Brands (KFC, Pizza Hut, Taco Bell) has set science-based targets to reduce Scope 1, 2, and 3 emissions.
• RBI's commitment to cage-free eggs by 2030 aligns with similar commitments from other major restaurant chains.

Stakeholder Impact

• Shareholders: The report provides transparency on RBI's ESG performance, which can influence investment decisions.
• Employees: The report highlights RBI's commitment to ethical conduct and human rights, which can improve employee morale and engagement.
• Customers: The report showcases RBI's efforts to offer sustainable and responsible food choices, which can attract environmentally conscious consumers.
• Suppliers: The report outlines RBI's expectations for suppliers to adhere to high standards of ethical conduct and sustainability.
• Communities: The report details RBI's investments in local communities through charitable initiatives and partnerships.

Next Steps

• RBI will update the baseline year for its SBTi goals to 2022.
• RBI is developing a water stewardship plan and evaluating initiatives to mitigate water risks across its operations and supply chain.
• Results from the emissions reduction pilots will guide updates to RBI's Restaurant Building Standards in 2025.
• Tim Hortons will apply learnings from pilots as they iterate on our packaging designs.
• RBI will actively monitor the KWI data we collect and plan to develop a roadmap with major suppliers around the most impactful and deliverable aspects of chicken welfare, starting with housing and enrichments.

Key Dates

Keywords

sustainability, ESG, Restaurant Brands International, environmental, social, governance, climate action, packaging, recycling, animal welfare, food safety, Tim Hortons, Burger King, Popeyes, Firehouse Subs