A general view of a Tim Hortons Drive-Thru coffeehouse and restaurant at Lakeside Retail Park on February 5, 2024 in Grays, United Kingdom.
John Keeble | Getty Images
Restaurant Brands International on Thursday reported quarterly earnings and revenue that beat analysts’ expectations, fueled by growth of its international restaurants and Tim Hortons.
Combined, the two divisions account for roughly 70% of the company’s earnings, according to CEO Josh Kobza.
Shares of Restaurant Brands rose 3% in premarket trading.
Here’s what the company reported compared with what Wall Street was expecting, based on a survey of analysts by LSEG:
Earnings per share: $1.03 adjusted vs. $1 expectedRevenue: $2.45 billion vs. $2.4 billion expected
Restaurant Brands reported third-quarter net income attributable to shareholders of $315 million, or 96 cents per share, up from $252 million, or 79 cents per share, a year earlier.
Excluding transaction costs and other items, the company earned $1.03 per share.
Net sales rose 6.9% to $2.45 billion. The company’s same-store sales, which only track the metric at restaurants open at least a year, grew 4%.
Restaurant Brands’ international segment was the star of the quarter, reporting 6.5% same-store sales growth. That topped the StreetAccount consensus estimate of 4.4%.
Tim Hortons reported same-store sales growth of 4.2%. The Canadian coffee chain has been leaning more into food offerings to drive sales and traffic at its restaurants.
Burger King’s same-store sales increased 3.1%, showing that the chain’s turnaround strategy in the U.S. is paying off for the business. Burger King has focused on restaurant renovations and marketing based on core menu items like the Whopper to revive domestic sales.
Popeyes was the only Restaurant Brands division to report same-store sales declines. The chicken chain saw its same-store sales shrink 2.4%. In recent quarters, it has struggled to keep up with rivals, particularly when it comes to competition for value-minded customers.
