Restaurant Brands International reported quarterly earnings and sales on Tuesday that fell in need of analysts' expectations as domestic same-store sales growth for all 4 of its chains fell in need of Wall Street estimates.
Here's what the the corporate reported for the third quarter in comparison with Wall Street expectations based on an analyst survey by LSEG:
- Earnings per share: 93 cents adjusted versus 95 cents expected
- Revenue: $2.29 billion versus expected $2.31 billion
The company's global same-store sales rose just 0.3% within the quarter. Burger King, Firehouse Subs and Popeyes all reported same-store sales declines of their home markets.
However, same-store sales trends have improved thus far within the fourth quarter.
“In October, the company as a whole is now seeing positive same-store sales in the low single digits, which is an improvement over what we have seen in.” [the third quarter]CEO Josh Kobza told CNBC.
He attributed more successful marketing campaigns and improved consumer sentiment within the US to the rise in sales.
“If you look at some of the things that are really impacting our guests' finances, you can see everything from reduced gas prices to falling interest rates and a significant moderation in inflation,” Kobza said.
Burger King's same-store sales fell 0.7% within the three-month period ended Sept. 30. According to StreetAccount estimates, analysts had expected the important thing figure to stay unchanged. The chain is within the midst of a turnaround within the U.S., but consumers are also spending less at restaurants, reigniting the price cutting war between Burger King and its rivals.
According to StreetAccount estimates, Popeyes reported a 4% drop in same-store sales, well below the expected 0.2% increase. The chain has recently tried to extend its value, first by promoting three-piece bone-in chicken for $5 after which by reintroducing its big-box offering for $6. In June, Popeyes introduced boneless wings as a everlasting menu item for the primary time in its history.
According to StreetAccount, Firehouse Subs saw same-store sales decline 4.8% within the quarter, in comparison with an expected decline of 0.4%. The sandwich chain is the latest addition to Restaurant Brands' portfolio as of 2021 and is the smallest brand by footprint, with just 1,300 locations as of the tip of the third quarter.
Tim Hortons was the highest performer with domestic same-store sales growth of two.3%. Kobza said Tims has increased traffic and improved its speed of service. But the Canadian coffee chain still fell in need of Wall Street same-store sales growth expectations of 4.1%.
Outside the U.S. and Canada, Restaurant Brands' international same-store sales rose 1.8% within the quarter, falling just in need of estimates of two.2%.
Restaurant Brands reported third-quarter net income attributable to common shareholders of $252 million, or 79 cents per share, which was flat from a 12 months ago.
Excluding items, the corporate earned 93 cents per share.
Net sales Revenue rose 24.7% to $2.29 billion, largely because of acquisitions of the biggest U.S. Burger King franchisee and the Popeyes business in China earlier this 12 months.
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