A sign is posted in front of a Burger King restaurant on February 15, 2022 in Daly City, California.
Justin Sullivan | Getty Images
Burger King parent company Restaurant Brands International on Thursday reported quarterly earnings and revenue that topped Wall Street’s expectations, fueled by same-store sales growth at its three largest chains that was better than expected.
Shares of the company fell less than 1% in premarket trading.
Here’s what the company reported compared with what Wall Street was expecting, 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
Restaurant Brands 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 its acquisition of Firehouse Subs and other items, the company earned 82 cents per share.
Net sales rose 14% to $1.64 billion. Global same-store sales across the company’s portfolio increased 9% in the quarter, fueled 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 Canadian same-store sales increased 14.2% in the quarter. Tims, which accounts for about 60% of Restaurant Brands’ revenue, has taken longer to bounce back from the pandemic, largely because of its home market’s tougher restrictions.
Burger King’s same-store sales increased 10% in the quarter, topping Wall Street’s expectations of 3.4%. Outside the U.S., same-store sales climbed 18.4%. But its home market saw flat same-store sales growth. Restaurant Brands executives are planning to share more details on its turnaround strategy for Burger King’s U.S. restaurants 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 has seen its growth lag in recent quarters as it faces tough comparisons to the earlier days of the pandemic, when its chicken sandwich fueled soaring sales.
Read the full earnings report here.