Restaurant Brands International has exceeded revenue expectations in its latest quarterly report, driven by impressive sales at Tim Hortons and the company’s international restaurants. CEO Josh Kobza acknowledged that while the company had hoped for even better top-line results, they have continued to outperform key competitors in major markets.
The company reported earnings per share of 86 cents adjusted, slightly below the 87 cents that was anticipated by Wall Street analysts. Despite this, revenue reached $2.08 billion, surpassing the $2.02 billion projection. Net income for the second quarter stood at $399 million, or 88 cents per share, showing growth from the previous year. Excluding exceptional items, the company earned 86 cents per share.
Among Restaurant Brands’ portfolio, Tim Hortons emerged as a top performer with a strong 4.6% increase in same-store sales. Initiatives such as introducing flatbread pizzas and expanding their beverage offerings have proven successful in attracting more customers, particularly in the afternoon. In comparison, Popeyes experienced moderate growth with same-store sales rising by 0.5%, driven by the popularity of their new boneless wings.
Despite overall positive results, Burger King and Firehouse Subs faced challenges with a slight decline in same-store sales. As part of a turnaround strategy, Burger King, similar to its competitors, introduced a $5 value meal to entice customers and increase foot traffic. The company recognizes the need to address industry pressures and is optimistic about the forthcoming changes at Burger King.
Restaurant Brands’ international locations demonstrated promising same-store sales growth of 2.6%, with strong performances in Brazil, Australia, and Japan. This growth helped offset weaker sales in regions such as China and the Middle East. Looking ahead, the company anticipates a 2% same-store sales growth for the remainder of the year.
In anticipation of continued growth, Restaurant Brands completed the acquisition of Popeyes China just before the end of the quarter. This move, along with the inclusion of the newly acquired restaurants from Carrols, highlights the company’s commitment to expanding its global footprint and enhancing its brand portfolio.
Restaurant Brands International’s latest quarterly report underscores its resilience and ability to outperform in a competitive industry. By capitalizing on the success of key brands, addressing challenges, and pursuing international opportunities, the company remains well-positioned for future growth and success.