Big Earnings for Restaurant Brands as Burger King and Tim Hortons Soar

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Restaurant Brands International Inc (TSX:QSR) on Monday announced its fourth-quarter and full-year earnings, with revenue reaching $1.67 billion in the three months ended Dec. 31, up from $1.63 billion in the same period a year earlier, while profit rose 7% to $89 million or 73 cents per share. Analysts expected earnings per share of 70 cents and revenue of $1.69 billion, according to Thomson Reuters Eikon data. For the year ended Dec.

Image Source- Reuters

Burger King and Tim Hortons sales growth helped Restaurant Brands International publish quarterly earnings and revenue that above analysts’ estimates on Thursday.
In premarket trade, business shares were unchanged.

According to a Refinitiv poll of analysts, the following discrepancy exists between what the firm reported and what Wall Street was anticipating:

Earnings per share: adjusted 96 cents vs. anticipated 80 cents
Revenue: $1.73 billion versus the anticipated $1.66 billion

The quarter’s net sales increased 15.5% to $1.73 billion. Same-store sales increased 9.1% globally.

Strong overseas expansion was the primary driver of Burger King’s 10.3% same-store sales increase. The hamburger restaurant has been underperforming the competition in its home market, prompting Restaurant Brands to propose a $400 million initiative to boost U.S. sales. U.S. same-store sales increased 4% this quarter.
Same-store sales at Tim Hortons rose by 9.8% during the quarter. The coffee chain’s 11.1% increase in same-store sales in Canada showed that its comeback had been successful.
Same-store sales at Popeyes Louisiana Kitchen increased by 3.1%. The chain’s same-store sales in the US increased by 1.3%.

The Taco Bell and KFC restaurants owned by Yum Brands also reported higher same-store sales on Wednesday. The corporation said that it isn’t typically observing a shift in consumer behaviour and that more upscale menu items are proving to be successful in the United States. McDonald’s also claimed last week that higher prices and more traffic were the main drivers of its U.S. same-store sales. The burger mogul claimed that when people choose fast food over more expensive restaurants, it is attracting more consumers.

Restaurant Brands announced a net income of $530 million, or $1.17 per share, for the three months that ended on September 30. This is an increase from $329 million, or 70 cents per share, in the same period last year.

The high dollar harmed Restaurant Brands’ performance, just like it did for other global corporations. The corporation disclosed a loss of $30 million due to currency exchange rates.

The corporation made 96 cents per share after things were taken out.

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