RADNOR, Pa., Jan. 24, 2021 (GLOBE NEWSWIRE) -- The law firm of Kessler Topaz Meltzer & Check, LLP reminds Restaurant Brands International Inc. (NYSE: QSR) (“Restaurant Brands”) investors that a securities fraud class action lawsuit has been filed in the United States District Court for the Southern District of New York against Restaurant Brands on behalf of those who purchased or acquired Restaurant Brands common stock between April 29, 2019, and October 28, 2019, inclusive (the “Class Period”).
Restaurant Brands is a Canadian corporation and headquartered in Toronto, Ontario, Canada. 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 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 commences 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, on October 29, 2019, the truth about Restaurant Brands’ execution of its Winning Together Plan and Tims Rewards loyalty program was revealed 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 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.
If you wish to discuss this securities fraud class action lawsuit or have any questions concerning this notice or your rights or interests with respect to this litigation, please contact Kessler Topaz Meltzer & Check, LLP (James Maro, Jr., Esq. or Adrienne Bell, Esq.) at (844) 887-9500 (toll free) or (610) 667–7706, or via e-mail at info@ktmc.com.
Restaurant Brands investors may, no later than February 19, 2021, seek to be appointed as a lead plaintiff representative of the class through Kessler Topaz Meltzer & Check, LLP, or other counsel, or may choose to do nothing and remain an absent 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.
Kessler Topaz Meltzer & Check, LLP prosecutes class actions in state and federal courts throughout the country involving securities fraud, breaches of fiduciary duties and other violations of state and federal law. Kessler Topaz Meltzer & Check, LLP is a driving force behind corporate governance reform, and has recovered billions of dollars on behalf of institutional and individual investors from the United States and around the world. The firm represents investors, consumers and whistleblowers (private citizens who report fraudulent practices against the government and share in the recovery of government dollars). For more information about Kessler Topaz Meltzer & Check, LLP, please visit www.ktmc.com.
CONTACT:
Kessler Topaz Meltzer & Check, LLP James Maro, Jr., Esq. Adrienne Bell, Esq. 280 King of Prussia Road Radnor, PA 19087 (844) 887-9500 (toll free) (610) 667-7706 info@ktmc.com
