Jose Cil, CEO of Restaurant Brands International, speaks on the New York Stock Exchange during an interview with CNBC on November 6, 2019.
Brendan McDermid | Reuters
Brands International restaurant Quarterly results were reported on Friday that exceeded Wall Street’s expectations as system-wide revenue surpassed 2019 levels.
The company’s shares remained roughly unchanged in premarket trading.
The company reported, relative to Wall Street expectations based on an analyst survey by Refinitiv:
- Earnings per share: 55 cents adjusted compared to 50 cents expected
- Revenue: $ 1.26 billion versus $ 1.25 billion expected
The company reported net income of $ 270 million, or 58 cents per share, for the first quarter, compared to $ 224 million, or 48 cents per share, a year earlier.
Without items, Restaurant Brands earned 55 cents per share, beating the analysts surveyed by Refinitiv, which was 50 cents per share.
Net sales rose 2.9% to $ 1.26 billion, beating expectations of $ 1.25 billion. The company said the increase in sales was mainly due to favorable foreign currency movements. Organic sales, which exclude the impact of foreign currency, decreased due to lower system-wide sales at Tim Hortons.
Tim Hortons posted a 2.3% drop in sales in the same store compared to a 10.3% drop in the same period last year. The Canadian coffee chain’s sales in the same store in its home market declined 3.3% in the quarter. Even before the pandemic, the chain was the laggard in Restaurant Brands’ portfolio. Tim Hortons has upgraded his coffee equipment and used his loyalty program to drive top-line growth in the mature Canadian market.
Burger King sales in the same store rose 0.7% for the quarter. A year ago, sales in the same store fell 3.7% as pandemic lockdowns were introduced around the world. Globally, the burger chain saw an increase in temporary store closings this quarter. Sales in the same store in the US were a bright spot, up 6.6%.
And after a quarter of the staggering sales growth in the same store that resulted from the famous chicken sandwich, Popeyes came to earth after facing hard comparisons with sales growth in the same store of 26.2% year over year. In the quarter, sales in the same store increased 1.5%. Sales in the same store in the US increased 0.9%.
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