TORONTO — Restaurant Brands International Inc. has received approval from its board of directors to allow it to repurchase up to US$1 billion of its common shares over the next two years.
Through the approval, which last until Sept. 30, 2025, the restaurant ownership giant says it may buy and cancel up to 10 per cent of its outstanding shares.
The plan follows the expiration of the company's earlier share repurchase authorization for up to the same US$1 billion total.
By buying back its shares, a company reduces its equity base, spreading profits over fewer shares. That increases its return on equity and earnings per share, two key ratios used to determine a company's financial health and investment rating.
Last year, RBI received approval from the TSX to allow it to repurchase up to 30.3 million shares or 10 per cent of its outstanding shares, but the company did not buy back any shares under the plan.
RBI, which owns brands such as Tim Hortons and Burger King International, reported last month that its latest quarter ending June 30 saw a 10 per cent sales increase compared with the same period a year earlier.
This report by The Canadian Press was first published Sept. 1, 2023.
Companies in this story: (TSX:QSR)
The Canadian Press
