How to Deal With According to the company, global same-store sales increased 9.1% in the third quarter.
Burger King reported 10.3% growth in same-store sales, driven by strong international growth. Same-store sales in the United States increased by 4%.
Yum Brands reported higher same-store sales at its Taco Bell and KFC restaurants on Wednesday.
Restaurant Brands International reported quarterly earnings and revenue that exceeded analysts’ expectations on Thursday, thanks to sales growth at Burger King and Tim Hortons.
In premarket trading, the company’s shares were unchanged.
Here’s how the company’s results compared to what Wall Street expected, according to a Refinitiv poll of analysts:
Earnings per share: 96 cents adjusted, compared to the expected 80 cents
Revenue: $1.73 billion, compared to $1.66 billion expected
In the third quarter, net sales increased 15.5% to $1.73 billion. Global same-store sales increased by 9.1%.
Burger King reported 10.3% growth in same-store sales, driven by strong international growth. In the United States, the burger chain has lagged behind the competition, prompting Restaurant Brands to announce a $400 million sales revitalization plan in September. Same-store sales in the United States increased by 4% in the third quarter.
Same-store sales at Tim Hortons increased 9.8%. The coffee chain reported 11.1% growth in same-store sales in Canada, demonstrating that its turnaround is taking hold. According to Restaurant Brands CEO Jose Cil, new menu items and “great value for money” drove higher sales at Tim Hortons.
Same-store sales increased 3.1% at Popeyes Louisiana Kitchen. Same-store sales at the fried chicken chain increased 1.3% in the United States.
Firehouse Subs, the most recent addition to Restaurant Brands’ portfolio, reported flat same-store sales. The company paid $1 billion for the sandwich chain in late 2021 and has been focusing on international expansion.
Restaurant Brands’ results come after Yum Brands reported higher same-store sales at its Taco Bell and KFC franchises on Wednesday. The company stated that it is not seeing a change in consumer behaviour and that more premium menu items are proving popular in the United States.
McDonald’s also reported higher same-store sales in the United States last week, citing increased traffic and price increases. According to the burger chain, it is attracting more customers who prefer fast food to dining out at more expensive restaurants.
Restaurant Brands reported a net income of $530 million, or $1.17 per share, for the three months ended September 30, up from $329 million, or 70 cents per share, the previous year.
The strong dollar hurt Restaurant Brands’ results, as it did other multinational corporations. Foreign exchange rates resulted in a $30 million loss for the company.
The company earned 96 cents per share after deducting items.