Burger King and Popeyes receive a severe blow in much of the world

Restaurant Brands Europe, the company that controls the franchises of Burger King, Popeyes, and Tim Hortons in Spain, Portugal, and Italy, closed 2024 with an increase in its sales. However, it also ended last year with a significant increase in its debt.

Growth in the Shadow of Growing Debt

The group's total sales increased by 12% to 1.33 billion euros, while the gross operating profit (Ebitda) rose by 14%, reaching 291 million euros. The Ebitda margin on sales kept stable, near 23%.

The network, composed of 1,359 company-owned and franchised restaurants, reached sales of 1.85 billion euros. However, the consolidated debt climbed to 1.448 billion, with a 2.2% growth in net debt, which reached 965 million euros.

An Ambitious and Challenging Expansion

With a presence in three countries and nearly 25,000 employees, the group seeks to establish itself as a leader in the European fast-food market. Borja Hernández de Alba, CEO of Restaurant Brands Europe, highlighted that the company continues driving its growth and strengthening its positioning. Last year, the group started operations in Italy with the arrival of Popeyes, changed its name to Restaurant Brands Europe, and acquired about 50 Burger King restaurants from Alsea.

At the end of the year, 80% of the restaurants were company-owned and 20% franchised, considered key for expansion. This strategy, although ambitious, creates a significant financial challenge due to the increase in debt, a fact that concerns investors and analysts.

Burger King Spain, the Sales Star

Among the group's brands, Burger King Spain stands out for its strong performance. It has nearly 1,000 establishments across the country, and its sales increased by 4%, approaching 1.5 billion euros.

Popeyes, after its entry into the Canary Islands and expansion across the autonomous communities, reported a 30% growth, with sales of more than 130 million euros. On the other hand, the Tim Hortons coffee chain closed the year with 16 locations and sales exceeding 7 million, an 18% increase. For the CEO, "2024 reflects our commitment to continue growing in all markets and consolidate a profitable and sustainable restaurant model in Europe."

Change in Leadership to Face Challenges

This year, Borja Hernández de Alba was appointed as the new CEO, replacing Luis Hérault, who left the position for personal reasons after a year in the role. Hernández de Alba has extensive experience in the restaurant sector. Previously, he was the general manager for Burger King in Spain and Portugal, and CEO of the group in Portugal.

His leadership is expected to drive the ongoing profitable growth plan. His deep knowledge of the company is seen as an advantage to overcome financial challenges and continue the expansion in the competitive European market.