Justin Sullivan | Getty Images Restaurant Brands International on Thursday reported quarterly profit and revenue that beat Wall Street expectations, fueled by an increase in international sales at Burger King and the recovery of Tim Hortons locations in Canada. In the US, the company said same-store sales were flat at Burger King and Popeyes. The company’s shares were almost unchanged in early trading. Here’s what the company reported compared to what Wall Street expected, based on a survey of analysts by Refinitiv:
Earnings per share: 82 cents adjusted vs. 73 cents expected Revenue: $1.64 billion vs. $1.57 billion expected
Restaurant Brands reported second-quarter net income attributable to shareholders of $236 million, or 76 cents per share, 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. Net sales rose 14% to $1.64 billion. Global same-store sales across the company’s portfolio rose 9% in the quarter, fueled by the performance of Tim Hortons and Burger King. Tim Hortons reported same-store sales growth of 12.2%, beating StreetAccount estimates of 8%. The coffee chain’s same-store sales in Canada rose 14.2% in the quarter. Tims, which accounts for about 60% of Restaurant Brands’ revenue, has taken longer to recover from the pandemic, largely due to tighter restrictions in its home market. Burger King’s same-store sales rose 10% in the quarter, beating Wall Street expectations for 3.4%. Outside the US, same-store sales rose 18.4%. But domestic same-store sales were flat. Restaurant Brands executives plan to share more details about the turnaround strategy for Burger King’s U.S. restaurants in early September. Popeyes Louisiana Kitchen reported same-store sales rose 1.4%, beating estimates for 0.3%. Like Burger King, Popeyes reported flat same-store sales in the U.S. The fried chicken chain has lagged in recent quarters as it faces tough comparisons to the earlier days of the pandemic, when the chicken sandwich fueled soaring sales. Firehouse Subs, the newest addition to the Restaurant Brands portfolio, saw its same-store sales fall 1.4% in the quarter. Read the full earnings report here.