Restaurant Brands International reported strong quarterly revenue, exceeding analysts’ expectations thanks to impressive sales at Tim Hortons and its international locations. The company’s shares rose 3% in morning trading following the announcement.
Key Financials
- Revenue: $2.08 billion, surpassing the $2.02 billion forecast.
- Earnings per Share: 86 cents adjusted, slightly below the expected 87 cents.
- Net Income: $399 million or 88 cents per share, up from $351 million or 77 cents per share a year earlier.
Performance Highlights
- Tim Hortons:
- Same-store sales grew by 4.6%.
- Recent menu additions, including flatbread pizzas and new cold coffee drinks, contributed to the strong performance.
- Popeyes:
- Same-store sales rose 0.5%.
- The chain’s new boneless wings have proven popular, though efforts to attract new customers are ongoing.
- Burger King:
- Same-store sales declined by 0.1%.
- The chain is in the midst of a turnaround, with a $5 value meal aimed at drawing back customers.
- Firehouse Subs:
- Same-store sales also fell by 0.1%.
International and Future Outlook
- International Sales: Same-store sales increased by 2.6%, driven by strong performance in Brazil, Australia, and Japan, despite challenges in China and the Middle East.
- Acquisitions:
- Restaurant Brands completed the acquisition of Popeyes China, which will impact results in the next quarter.
- The new Restaurant Holdings segment includes Popeyes China and newly acquired Burger King locations from Carrols, previously Burger King’s largest U.S. franchisee.
CEO Comments
Josh Kobza, CEO, highlighted the company’s better-than-expected results and outperformance relative to industry competitors. He acknowledged that while short-term pressures exist, significant improvements are underway, particularly at Burger King.
Restaurant Brands anticipates same-store sales growth of about 2% for the remainder of the year, reflecting continued efforts to boost performance across its brands.