Burger King parent Restaurant Brands sees profit fall, but international division shines

Restaurant Brands International on Thursday reported mixed quarterly results, as same-store sales declines for Popeyes were offset by strong demand internationally and at Tim Hortons.

Here’s what the company reported for the period ended June 30 compared with what Wall Street was expecting, based on a survey of analysts by LSEG:

• Earnings per share: 94 cents adjusted vs. 97 cents expected
• Revenue: $2.41 billion vs. $2.32 billion expected

Restaurant Brands reported second-quarter net income attributable to shareholders of $189 million, or 57 cents per share, down from $280 million, or 88 cents per share, a year earlier.

Excluding transaction costs from its acquisition of Burger King China and other one-time costs, the company earned 94 cents per share.

Net sales climbed 16% to $2.41 billion.

The company’s same-store sales, which only tracks the metric at restaurants open at least a year, rose 2.4% during the quarter.

Restaurant Brands’ international restaurants, however, reported same-store sales growth of 4.2%.

Tim Hortons, which accounts for more than 40% of Restaurant Brands’ total revenue, reported same-store sales growth of 3.4%.

Burger King reported same-store sales growth of 1.3%. Its U.S. division, which has been in turnaround mode for nearly three years, saw same-store sales increase by 1.5%.

Popeyes was the laggard of the portfolio for the most recent quarter, reporting same-store sales declines of 1.4%.

For the full year, Restaurant Brands reiterated its forecast, anticipating that it will spend between $400 million and $450 million on consolidated capital expenditures, tenant inducements and other incentives. The company also said that it still expects to reach its long-term algorithm, which projects 3% same-store sales growth and 8% organic adjusted operating income growth on average between 2024 and 2028.

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