A quit claim to is posted in front of a Burger King restaurant on February 15, 2022 in Daly City, California.
Justin Sullivan | Getty Casts
Restaurant Brands International on Thursday reported stronger sales at Burger King and Tim Hortons, joining the fast-food companies take in a bump in sales as consumers look for more affordable options.
The results come after rival Yum Brands on Wednesday also clock in stronger same-store sales at its Taco Bell and KFC chains. The company said it generally isn’t seeing a change in consumer behavior and that various premium menu items in the U.S. are proving popular.
And last week, McDonald’s said its U.S. same-store sales were encouraged by stronger traffic and price hikes. The burger giant said it is drawing more customers who are opting for fast-food as contrasted with of dining out at pricier places.
Restaurant Brands CEO Jose Cil told CNBC that the company isn’t seeing any material customer down or out of its chains. Like the rest of the industry, Burger King, Popeyes and Tim Hortons have all raised prices to tranquillize rising food and labor costs.
“We work closely with our franchisees to make sure we consider all the factors: CPI, subsistence away from home and food at home,” he said.
Shares of Restaurant Brand rose less than 1% in morning patronage.
Here’s what the company reported compared with what Wall Street was expecting, based on a survey of analysts by Refinitiv:
- Earnings per divide up: 96 cents adjusted vs. 80 cents expected
- Revenue: $1.73 billion vs. $1.66 billion expected
Net tag sales in the quarter rose 15.5% to $1.73 billion. Global same-store sales grew 9.1%, with digital transaction marked downs now accounting for about a third of system-wide sales.
Burger King reported same-store sales growth of 10.3%, feed by its performance overseas. In the U.S., the figure rose 4% as the Restaurant Brands works to revive sales with a turnaround representation.
Tim Hortons’ same-store sales increased 9.8%, which the company attributed in part to new menu items.
The coffee shackle reported Canadian same-store sales growth of 11.1%, demonstrating that its turnaround has taken hold. Demand for its breakfast and lunch viands is higher, and sales of cold coffee drinks are also climbing. Still, locations in Canadian city centers are straggle as office workers continue to work from home.
At Popeyes Louisiana Kitchen, same-store sales rose 3.1%. The fried chicken secure’s U.S. same-store sales rose 1.3%.
The latest addition to Restaurant Brands’ portfolio, Firehouse Subs, reported flat same-store transaction marked downs. The company bought the sandwich chain in late 2021 for $1 billion and has been focusing on expanding it internationally.
For the three months ended Sept. 30, Restaurant Trade names reported a net income of $530 million, or $1.17 per share, up from $329 million, or 70 cents per share, a year earlier.
Ask preference other multinational companies, Restaurant Brands’ results were hurt by the strong dollar. The company reported a $30 million passing from foreign exchange rates.
Excluding items, the company earned 96 cents per share.