A sign is placed outside a Burger King restaurant on February 15, 2022 in Daly City, California.
Justin Sullivan | Getty Images
Restaurant Brands International on Thursday reported quarterly earnings and revenue that beat Wall Street expectations, fueled by growth in international sales at Burger King and the recovery of Canadian Tim Hortons locations.
In the US, the company said same-store sales were flat at Burger King and Popeyes.
The company’s shares were largely unchanged in premarket 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 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.
Net sales rose 14% to $1.64 billion. Global same-store sales across the company’s portfolio increased 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 Canadian same-store sales 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 domestic market restrictions.
Burger King’s same-store sales rose 10% in the quarter, beating Wall Street expectations of 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 their strategy to turn around Burger King’s U.S. restaurants in early September.
Popeyes Louisiana Kitchen reported same-store sales growth of 1.4%, beating estimates of 0.3%. Like Burger King, Popeyes reported flat US same-store sales. The fried chicken chain has seen growth lag in recent quarters as it faces tough comparisons to the earlier days of the pandemic, when its chicken sandwiches fueled soaring sales.
Firehouse Subs, the newest addition to the Restaurant Brands portfolio, saw its same-store sales decline 1.4% in the quarter.
Read the full earnings report here.
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