Tim Hortons signs are displayed in a restaurant window in downtown Vancouver, British Columbia, Canada.
Ben Nelmez | Bloomberg | Getty Images
Brands International Restaurant On Thursday, it reported quarterly earnings and revenue that beat Wall Street expectations, buoyed by growth in international sales at Burger King and a recovery in Canada’s Tim Hortons locations.
In the US, the company said same-store sales were flat at Burger King and Popeyes.
The company’s shares rose 5% in morning trading.
Here’s what the company reported compared to what Wall Street was expecting, based on an analyst survey by Refinitiv:
- Earnings per share: 82 cents adjusted vs. 73 cents forecast
- Revenue: $1.64 billion vs. $1.57 billion forecast
net sales for the quarter It rose 14% to $1.64 billion. Global store sales across the company’s portfolio were up 9%, driven by the performance of Tim Hortons and Burger King.
Like many of its competitors, Restaurant Brands said it raised menu prices during the quarter to help offset higher food and shipping costs.
“We’ve been making very sure that any price increases we make, we take the consumer into account and ensure we don’t get too far ahead of them,” CEO Jose Seal said on the company’s quarterly conference call.
Tim Hortons’ same-store sales growth of 12.2% beat StreetAccount’s estimate of 8%. In Canada, same-store sales for the coffee chain rose 14.2%.
Thames, which accounts for about 60% of restaurant revenue, has taken longer to recover from the pandemic, in large part due to tighter local market restrictions. Executives credited new cold drinks and menu items, upgrades to its core menu and collaboration with Justin Bieber to improve the chain’s performance.
However, hot coffee sales have not recovered from pre-pandemic levels. North American coffee drinkers are increasingly choosing iced coffee or cold brew over hot drinks. for example, Starbucks said that three-quarters of its sales are in the United States During the fiscal third quarter came from cold drinks.
Burger King global sales rose 10% in the first quarter, beating Wall Street expectations of 3.4%. This was driven by 18.4% same-store sales growth outside the US
But same-store sales in Burger King’s domestic market have been steady as the company works to improve order accuracy and operational efficiency to improve the chain’s performance. The CEO said they plan to share more details about Burger King’s transformation strategy in the United States in early September.
Popeyes Louisiana Kitchen reported same-store sales growth of 1.4%, beating estimates of 0.3%. Like Burger King, Popeyes reported consistent same-store sales in the United States. The fried chicken chain has seen growth lags in recent quarters as it faces tough comparisons to the days prior to the pandemic, when the chicken sandwich fueled its soaring sales.
Firehouse Subs, the latest addition to the Restaurant Brands portfolio, saw same-store sales fall 1.4% in the quarter.
For the quarter, Restaurant Brands reported net income attributable to shareholders of $236 million, or 76 cents per share, down from $259 million, or 84 cents per share, a year earlier.
Excluding costs related to the acquisition of Firehouse Subs and other items, the company earned 82 cents per share.