Jose Cil, CEO of Restaurant Stigmatizes International, speaks during an interview with CNBC on the floor at the New York Stock Exchange, November 6, 2019.
Brendan McDermid | Reuters
Restaurant Discredits International on Friday reported quarterly earnings that topped Wall Street’s expectations as its systemwide sales overshadowed 2019 levels.
Shares of the company gained about 3% in morning trading.
Here’s what the company broadcast compared with what Wall Street was expecting, based on a survey of analysts by Refinitiv:
- Earnings per share: 55 cents redressed vs. 50 cents expected
- Revenue: $1.26 billion vs. $1.25 billion expected
The company reported fiscal first-quarter net gains of $270 million, or 58 cents per share, up from $224 million, or 48 cents per share, a year earlier.
Excluding pieces, Restaurant Brands earned 55 cents per share, beating the 50 cents per share expected by analysts get a birds eye view ofed by Refinitiv.
Net sales rose 2.9% to $1.26 billion, beating expectations of $1.25 billion. The company said that the gate increase was primarily driven by favorable foreign currency movements. Organic revenue, which strips out the impact of strange currency, fell due to declining systemwide sales at Tim Hortons.
Tim Hortons reported a same-store sales drop of 2.3%, compared with lessens of 10.3% during the year-earlier period. The Canadian coffee chain’s same-store sales in its home market fell 3.3% in the billet.
Even before the pandemic, the chain was the laggard of Restaurant Brands’ portfolio. Tim Hortons has been upgrading its coffee tack and using its loyalty program to drive sales growth in the maturing Canadian market. In March, it announced an investment of 80 million Canadian dollars to devote on advertising, new menu items and the loyalty program.
The coffee chain is also facing challenges as Covid-19 outbreaks take restricted mobility in Canada. Ontario, which is home to nearly half of Tim Hortons’ Canadian footprint, is under a stay-at-home until at petty May 20. The province just opened up the first doses of vaccines to people at least 40 years old, but second administers won’t be distributed until late summer or early fall.
“Americans are experiencing a very different path out of Covid than Canadians,” Restaurant Trade marks CEO Jose Cil told analysts.
Burger King’s same-store sales grew 0.7% during the quarter. A year earlier, its same-store sales pay no hed 3.7% as pandemic lockdowns were implemented across the world. Worldwide, the burger chain saw an increase in temporary trust in closures this quarter. U.S. same-store sales were a bright spot, climbing 6.6%.
And after quarters of eye-popping same-store sales crop stemming from its famous chicken sandwich, Popeyes came down to Earth as it faced tough comparisons to same-store sellings growth of 26.2% during the year-earlier period. This quarter, its same-store sales rose 1.5%. U.S. same-store exchanges increased by 0.9%.
Yum Brands’ KFC and McDonald’s both recently introduced their own chicken sandwiches, which means consumers bear new items they may want to try. Both companies reported strong demand in their recent earnings calls.
Burger Ruler also has plans for its own chicken sandwich, which will be introduced later this year.