A class action lawsuit has been filed in the United States District Court for the Southern District of New York on behalf of investors that purchased Restaurant Brands International, Inc. common stock between April 29, 2019 and October 28, 2019.
RBI operates 27,000 Tim Hortons, Burger King, and Popeyes restaurants in more than 100 countries. 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, RBI 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.
The lawsuit claims throughout the Class Period, defendants repeatedly touted the implementation and execution of the RBI's Winning Together Plan and Tims Rewards loyalty program.
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, such as Tims Rewards loyalty program was not generating sustainable revenue growth as increased customer traffic was not offsetting promotional discounting.
Investors have until February 19, 2021 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
More detailed information about the lawsuit can be found here