Jacob Brown
Restaurant Brands International revealed quarterly profits and revenue that beat analysts’ anticipations on Tuesday, fueled by stronger-than-expected Tim Hortons sales.
Stable Pre-market Trading:
Shares of the company remained unchanged in premarket trading, indicating a steady start to the trading day.
Strong Financial Performance:
Restaurant Brands reported fourth-quarter earnings per share of 75 cents adjusted, surpassing Wall Street expectations of 73 cents. Additionally, revenue stood at $1.82 billion, slightly higher than the anticipated $1.81 billion.
Robust Net Income Growth:
The company’s net income attributable to shareholders for the fourth quarter reached $508 million, or $1.60 per share, up significantly from $229 million, or 74 cents per share, compared to the same period last year. Adjusted for items, the company earned 75 cents per share.
New Reporting Structure:
Restaurant Brands introduced a new reporting structure this quarter, providing separate results for its individual brands in the U.S. and Canada, while consolidating international locations under its “international” segment.
Brand Performance Highlights:
Tim Hortons, the Canadian coffee chain, reported an impressive 8.4% increase in same-store sales for the quarter, driven by growth in cold drinks and afternoon snacks.
Burger King saw a 6.3% growth in same-store sales, particularly in its U.S. business, which has been undergoing a successful turnaround strategy involving restaurant remodeling and increased advertising efforts.
Popeyes experienced a 5.5% increase in same-store sales, fueled by the launch of chicken wings as a permanent menu item and a memorable Super Bowl commercial.
International Segment Performance:
Restaurant Brands reported a 4.6% growth in international same-store sales, indicating a strong performance across its global locations.
Strategic Acquisitions and Expansion Plans:
The recent acquisition of Burger King’s largest U.S. franchisee, Carrols Restaurant Group, in a $1 billion deal underscores the company’s commitment to accelerating restaurant renovations and expansion efforts.
Overall, Restaurant Brands’ robust financial performance and strategic initiatives position it for continued growth and success in the competitive fast-food industry.
