NEW YORK, Feb. 19, 2021 /PRNewswire/ -- Pomerantz LLP announces that a class action lawsuit has been filed against Restaurant Brands International Inc. ("Restaurant Brands" or the "Company") (NYSE: QSR) and certain of its officers. The class action, filed in the United States District Court for the Central District of California, and docketed under 21-cv-00148, is on behalf of a class consisting of all persons and entities other than Defendants who purchased or otherwise acquired Restaurant Brands securities between April 29, 2019 and October 28, 2019, inclusive (the "Class Period"), seeking to pursue remedies under the Securities Exchange Act of 1934 (the "Exchange Act").
If you are a shareholder who purchased Restaurant Brands securities during the Class Period, you have until February 19, 2021, to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at [email protected] or 888.476.6529 (or 888.4-POMLAW), toll-free, Ext. 7980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and the number of shares purchased.
Restaurant Brands 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 as of December 31, 2019.
On April 24, 2018, Restaurant Brands announced a new strategy designed to improve performance within the Company's Tim Hortons brand. Specifically, the "Winning Together Plan" would focus on three key pillars: restaurant experience; product excellence; and brand communications.
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 U.S.
Throughout the Class Period, Defendants repeatedly touted the implementation and execution of the Company's Winning Together Plan and Tims Rewards loyalty program. On the heels of the Company 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.
This Complaint alleges that, throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts, about the Company's business and operations. Specifically, Defendants misrepresented and/or failed to disclose that: (i) the Company's Winning Together Plan was failing to generate substantial, sustainable improvement within the Tim Hortons brand; (ii) the Tims Rewards loyalty program was not generating sustainable revenue growth as increased customer traffic was not offsetting promotional discounting; and (iii) as a result, Defendants' statements about the Company's business, operations, and prospects lacked a reasonable basis.
On October 28, 2019, mere weeks after the offerings were completed, investors learned the truth about Tim Hortons' hyped growth initiatives when the Company announced disappointing financial results for the third quarter ended September 30, 2019. Specifically, Defendants acknowledged that "results at Tim Hortons were not where we want them to be with global comparable sales dipping into negative territory" and admitted that "discounting [associated with Tims Rewards] is slightly more than offsetting the traffic levels, which is causing a little bit of softness in sales."
On this news, the price of Restaurant Brands common shares declined $2.59 per share, or approximately 4%, from a close of $68.45 per share on October 25, 2019, to close at $65.86 per share on October 28, 2019.
The Pomerantz Firm, with offices in New York, Chicago, Los Angeles, and Paris is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 80 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com.
Robert S. Willoughby
888-476-6529 ext. 7980
SOURCE Pomerantz LLP