Restaurant Brands International Profit Rises on Burger King U.S. Growth

Dow Jones
08/06
 
 

Restaurant Brands International's profit rose in the second quarter, driven by a standout performance at Burger King U.S. that bucked a broader trend of slowing fast-food demand across other major chains.

The fast-food company, which also owns Tim Hortons and Popeyes, on Thursday reported net income from continuing operations of $665 million, or $1.45 a share, up from $264 million, or 58 cents a share, in the prior-year period.

Adjusted earnings were $1.07 a share. According to FactSet, analysts were expecting $1.04 a share.

Revenue rose to $2.52 billion from $2.41 billion, in line with analyst expectations.

North America's fast-food sector faces a tightening demand environment as price-leery consumers reduce their visits to restaurants. Restaurant Brands reported a 3.8% increase in overall comparable sales for the quarter, accelerating from 2.4%, led by an 8.5% jump at Burger King U.S., bucking the broader trend seen in the sector.

The gains at Burger King helped offset a slowdown at Tim Hortons Canada, which decelerated to 0.1%, and a drop at Popeyes, where comparable sales fell 5.1%, at a faster clip than the 1.4% decline a year earlier. Firehouse Subs comparable sales growth was 0.4%, reversing a 0.8% decline a year earlier.

Restaurant Brands' international segment saw same-store sales of 5.5%, accelerating from the 4.1% a year earlier.

System-wide sales growth, which measures the combined sales generated by all locations in the company's network, accelerated to 6.4% from 5.3% in the quarter, reaching $12.7 billion.

 
 

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