Restaurant Brands International, the parent company of popular fast-food chains like Tim Hortons, Burger King, and Popeyes, reported better-than-expected revenue for the second quarter of the year. The company’s CEO, Josh Kobza, acknowledged that while they were hoping for better results, they still outperformed their competitors in some of their largest markets.
The company’s net income for the quarter was $399 million, or 88 cents per share, compared to $351 million, or 77 cents per share, in the same period last year. Adjusted earnings per share came in at 86 cents, slightly below the expected 87 cents.
One of the standout performers for Restaurant Brands was Tim Hortons, which saw a 4.6% increase in same-store sales. The chain’s efforts to attract more customers in the afternoon, such as introducing flatbread pizzas and expanding their cold coffee and energy drink offerings, have paid off. On the other hand, Popeyes saw a more modest 0.5% increase in same-store sales, driven by the popularity of their new boneless wings.
However, both Burger King and Firehouse Subs experienced a decline in same-store sales, with a decrease of 0.1% for the quarter. Kobza acknowledged that the sales and traffic results at Burger King were not as strong as they had hoped but noted that the company was still outperforming other burger quick-service restaurants.
To entice customers back, Burger King, like McDonald’s and Wendy’s, introduced a $5 value meal. The company believes that this value meal, which has been profitable for franchisees, will help drive sales in the coming months.
Restaurant Brands’ international locations saw a 2.6% increase in same-store sales. Executives attributed this growth to strong sales in countries like Brazil, Australia, and Japan, which offset weaker performance in China and the Middle East.
Looking ahead, Restaurant Brands expects same-store sales to grow by around 2% in the second half of the year. The company recently completed its acquisition of Popeyes China, which will contribute to its results in the next quarter.
In conclusion, while Restaurant Brands International fell slightly short of earnings expectations, it still performed well compared to its industry competitors. Tim Hortons was a standout performer, while Burger King faced challenges but is undergoing a turnaround. The company’s international locations also performed strongly, with promising growth in key markets. With the recent acquisition of Popeyes China, Restaurant Brands is poised for continued success in the coming months.
