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, 3rd
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.