Carella, Byrne, Cecchi, Olstein, Brody & Agnello, P.C. files a securities class action lawsuit against Restaurant Brands International Inc.

ROSELAND, N.J., Feb. 5, 2021 /PRNewswire/ -- The law firm of Carella Byrne Cecchi Olstein Brody & Agnello, P.C. has filed a securities fraud class action lawsuit in the United States District Court for the Southern District of Florida against Restaurant Brands International Inc. (NYSE: QSR) ("Restaurant Brands") on behalf of those individuals who purchased or acquired Restaurant Brands common stock between April 29, 2019, and October 28, 2019, inclusive (the "Class Period"). The action is captioned Paul J. Graney v. Restaurant Brands International Inc., et al., Case No.1:21-cv-20508 (the "Graney Action"). 

There is a related class action case pending against Restaurant Brands in the United States District Court for the Southern District of New York. That first-filed action issued a notice of its filing pursuant to the federal securities laws on December 21, 2020, which triggered the deadline of February 19, 2021, for any investors who purchased Restaurant Brands common stock to seek to be appointed as a lead plaintiff representative of the class.  The filing of the Graney Action does not change the February 19, 2021 lead plaintiff deadline. For additional information or to learn how to participate in this litigation, please contact Carella Byrne Cecchi Olstein Brody & Agnello, P.C.: Zach Bower, Esq. (973) 994-1700 or via e-mail at zbower@carellabyrne.com.  

Restaurant Brands is a Canadian corporation and headquartered in Toronto, Ontario, Canada, and 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 U.S. territories. On April 24, 2018, Restaurant Brands announced a new strategy designed to improve performance within its Tim Hortons brand. Specifically, the "Winning Together Plan" would focus on three key pillars: restaurant experience; product excellence; and brand communications. Then, on March 20, 2019, Restaurant Brands announced "Tims Rewards" – a new loyalty program for Tim Hortons customers in Canada. Under the Tims Rewards program, customers would be eligible for a free hot brewed coffee, hot tea, or baked good after every seventh paid visit to a participating Tim Hortons restaurant. On April 10, 2019, Restaurant Brands announced that it was expanding the Tims Rewards program to include 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 SEC. Among other things, Restaurant Brands reported 0.5% system-wide year-over-year sales growth for Tim Hortons on system-wide sales of $1.547 billion. The complaint alleges that, throughout the Class Period, the defendants repeatedly touted the implementation and execution of Restaurant Brands' "Winning Together Plan" and "Tims Rewards" loyalty program. On the heels of Restaurant Brands touting the benefits of these initiatives, the company completed two stock offerings on or about August 12, 2019, and September 5, 2019, collectively resulting in proceeds of approximately $3 billion to insiders.

However, the reality about Restaurant Brands' execution of its "Winning Together Plan" and "Tims Rewards" loyalty program was revealed on October 29, 2019 when the company announced disappointing financial results for the third quarter ended September 30, 2019. Among other things, Restaurant Brands reported a 0.1% system-wide year-over-year sales decline for Tim Hortons—representing a 1.4% same-store sales decline—on system-wide sales of $1.774 billion. Following this news, the price of Restaurant Brands common stock declined $2.59 per share, or approximately 4%, from a close of $68.45 per share on October 25, 2019, to close at $64.86 per share on October 28, 2019.

The filed complaint alleges that, throughout the Class Period, the defendants misrepresented and/or failed to disclose that: (1) Restaurant Brands' "Winning Together Plan" was failing to generate substantial, sustainable improvement within the Tim Hortons brand; (2) the "Tims Rewards" loyalty program was not generating sustainable revenue growth as increased customer traffic was not offsetting promotional discounting; and (3) as a result, the defendants' statements about Restaurant Brands' business, operations, and prospects lacked a reasonable basis.

Restaurant Brands investors may, no later than February 19, 2021, seek to be appointed as a lead plaintiff representative of the class through Carella Byrne, or other counsel, or may choose to do nothing and remain a class member. A lead plaintiff is a representative party who acts on behalf of all class members in directing the litigation. In order to be appointed as a lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not affected by the decision of whether or not to serve as a lead plaintiff.

Carella, Byrne, Cecchi, Olstein, Brody & Agnello, P.C., founded in 1976, is a leading law firm in the New Jersey - New York metropolitan area, serving a diverse clientele ranging from small businesses to Fortune 500 corporations. For more information about Carella, Byrne, Cecchi, Olstein, Brody & Agnello, P.C., please visit www.carellabyrne.com.

CONTACT:
Zach Bower, Esq.
Carella, Byrne, Cecchi, Olstein,
Brody & Agnello, P.C
2222 Ponce De Leon, 3^rd Floor
Coral Gables, Florida 33134
Phone: (973) 994-1700
Email: zbower@carellabyrne.com

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SOURCE Carella, Byrne, Cecchi, Olstein, Brody & Agnello, P.C.