A sign is posted in front of a Burger King restaurant on February 15, 2022 in Daly City, California.
Justin Sullivan | Getty Images
International Brands Restaurant on Thursday reported quarterly earnings and revenue that beat Wall Street expectations, boosted by international sales growth at Burger King and the recovery of Tim Hortons’ Canadian locations.
In the United States, the company said same-store sales were flat at Burger King and Popeyes.
The company’s shares were almost flat in premarket trading.
Here’s what the company reported compared to Wall Street’s expectations, based on a survey of analysts by Refinitiv:
- Earnings per share: 82 cents adjusted vs. 73 cents expected
- Revenue: $1.64 billion vs $1.57 billion expected
Brandy Restaurant reported second-quarter net income attributable to shareholders of $236 million, or 76 cents per share, down from $259 million, or 84 cents per share, a year earlier.
Excluding costs related to the acquisition of Firehouse Subs and other items, the company earned 82 cents per share.
Net sales it rose 14% to $1.64 billion. Global same-store sales across the company’s portfolio increased 9% in the quarter, driven by the performance of Tim Hortons and Burger King.
Tim Hortons reported same-store sales growth of 12.2%, beating StreetAccount estimates of 8%. The coffee chain’s same-store sales in Canada increased 14.2% in the quarter. Tims, which accounts for about 60% of Brand Restaurant’s revenue, took longer to bounce back from the pandemic, mainly due to tighter restrictions in its home market.
Burger King’s same-store sales rose 10% in the quarter, beating Wall Street expectations of 3.4%. Outside the United States, same-store sales increased 18.4%. But sales in his domestic same-store market were flat. Restaurant Brands executives plan to share more details about their turnaround strategy for Burger King restaurants in the United States in early September.
Popeyes Louisiana Kitchen reported same-store sales growth of 1.4%, beating estimates of 0.3%. Like Burger King, Popeyes reported flat same-store sales in the U.S. The fried chicken chain’s growth has slowed in recent quarters as it faces tough comparisons to the early days of the pandemic, when its chicken sandwich fueled rising sales.
Same-store sales for Firehouse Subs, the newest addition to the Restaurant Brands portfolio, fell 1.4% in the quarter.