Restaurant Brands International, the parent company of Burger King, Tim Hortons, and Popeyes, has reported impressive double-digit same-store sales growth in its second quarter, signaling positive results for the fast-food giant. Despite this success, the company’s shares closed down by less than 1% on Tuesday afternoon.
The company’s earnings per share of 85 cents, adjusted, exceeded Wall Street expectations of 77 cents. Additionally, its revenue of $1.78 billion also surpassed expectations of $1.75 billion. Net income for the second quarter was $351 million, or 77 cents per share, compared to $346 million, or 76 cents per share, in the same period last year.
The growth was primarily driven by the strong performance of Tim Hortons and Burger King. Tim Hortons reported an impressive same-store sales growth of 11.4%, surpassing estimates of 6.5%. Likewise, Burger King’s same-store sales rose by 10.2%, far exceeding estimates of 5.3%. Popeyes also experienced a commendable same-store sales growth of 6.3%, beating expectations of 3.5%. Even Firehouse Subs, the most recent addition to Restaurant Brands’ portfolio, reported a positive same-store sales growth of 2.1%.
However, U.S. traffic for Restaurant Brands remained flat to slightly negative across Popeyes, Burger King, and Firehouse Subs. On the other hand, Tim Hortons witnessed a significant same-store sales growth of 12.5% in Canada.
Looking ahead, the company is planning to invest around $400 million in Burger King’s comeback in the competitive U.S. market. Restaurant Brands remains optimistic about its long-term growth targets and aims to have a clearer view of its performance by the end of the year.
Despite the positive results and growth prospects, the marginal decrease in shares may be attributed to various factors, including investor expectations and the volatility of the stock market. Nonetheless, Restaurant Brands International continues to maintain an optimistic outlook for its various fast-food brands and plans to further strengthen its presence in the global market.
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