Kirby McInerney LLP Reminds Investors That a Class Action Lawsuit Has Been Filed Against Restaurant Brands International Inc. and Encourages Investors to Contact the Firm Before February 19, 2021
NEW YORK, Jan 07, 2021 (GLOBE NEWSWIRE) – Law firm Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the Southern Borough of New York on behalf of those who acquired Restaurant Brands’ Securities of International Inc (“Restaurant Brands” or “Company”) (NYSE: QSR) from April 29, 2019 to October 28, 2019 (the “Class Period”). Investors have until February 19, 2021 to apply to the court for appointment as the lead plaintiff in the lawsuit.
Restaurant Brands is a Canadian company headquartered in Toronto, Ontario. It is one of the world’s largest restaurant chains with over 27,000 Tim Hortons, Burger King and Popeyes restaurants in more than 100 countries and US territories. On April 24, 2018, Restaurant Brands announced a new strategy to improve the performance of its Tim Hortons brand. In particular, the Winning Together Plan would focus on three key pillars: restaurant experience; Product quality; and brand communication. On March 20, 2019, Restaurant Brands announced “Tims Rewards” – a new loyalty program for Tim Hortons customers in Canada. As part of the Tims Rewards program, customers receive free hot coffee, hot tea or baked goods after every seventh visit to a participating Tim Hortons restaurant. On April 10, 2019, Restaurant Brands announced that the Tims Rewards program was expanding to customers in the United States.
The class period begins on April 29, 2019 when Restaurant Brands filed its financial results for the first quarter ended March 31, 2019 with the United States Securities and Exchange Commission. Among other things, Restaurant Brands posted system-wide revenue growth of 0.5% year over year for Tim Hortons, with system-wide revenue of $ 1.547 billion. The lawsuit alleges that throughout the classroom the defendants repeatedly touted the implementation and execution of Restaurant Brands’ Winning Together Plan and Tims Rewards loyalty program. Shortly after Restaurant Brands touted the benefits of these initiatives, the company closed two stock offerings on or about August 12, 2019 and September 5, 2019, for combined proceeds of approximately $ 3 billion for Insiders.
However, on October 29, 2019, the truth emerged about Restaurant Brands’ implementation of the Winning Together Plan loyalty program and Tims Rewards when the company announced disappointing financial results for the third quarter ended September 30, 2019. Restaurant Brands Tim Hortons, among others, posted a system-wide revenue decline of 0.1% year over year, representing a 1.4% decline in revenue in the same store with system-wide revenue of $ 1.774 billion. Following the news, the price of Restaurant Brands common stock fell from $ 68.45 per share on October 25, 2019, down $ 3.59 per share, or approximately 5.2%, to close at $ 64.86 per share on October 29, 2019 .
The lawsuit alleges that throughout the classroom, the defendants misrepresented and / or failed to disclose: (1) Restaurant Brands’ Winning Together plan failed to produce any material, sustained improvement in the Tim Hortons brand. (2) Tims Rewards’ loyalty program did not result in sustained sales growth as increased customer traffic could not offset the discounts. and (3) as a result, Defendants’ statements about the business, operations and prospects of Restaurant Brands were unfounded.
If you have purchased or otherwise acquired Restaurant Brands securities, have information, or would like to learn more about these claims, please contact Thomas W. Elrod of Kirby McInerney LLP at 212-371- by email Investigations@kmllp.com 6600 or By filling out this contact form, you can discuss your rights or interests in relation to these matters at no cost to you.
Kirby McInerney LLP is a New York-based law firm focused on securities, antitrust, whistleblower and consumer litigation. The company’s efforts on behalf of shareholders in securities litigation have resulted in total recoveries of $ billion. For more information about the company, please visit the Kirby McInerney LLP website: http://www.kmllp.com.
This press release may be viewed as a solicitor’s advertisement in some jurisdictions under applicable laws and ethical rules.
Kirby McInerney LLP
Thomas W. Elrod, Esq.