* Q2 revenue and adjusted EPS beat estimates
* Burger King comp sales up 6.7 pct; Tim Hortons' 5.5 pct
* New items, chicken fries re-launch boost Burger King
* Tim Hortons adds new lunch-time items; healthy foods helps
* Shares rise 7.5 pct to 5-month high
(Adds Breakingviews link)
By Anet Josline Pinto and Sneha Banerjee
July 27 (Reuters) - Restaurant Brands International Inc
QSR.TO QSR.N , formed out of Burger King's takeover of
Canadian coffee chain Tim Hortons last year, reported a
better-than-expected quarterly profit as new menu items helped
attract customers.
The world's third-largest fast-food restaurant group's
shares rose 7.5 percent to a five-month high on Monday after
both chains posted a rise in second-quarter comparable
restaurant sales.
Burger King's comparable sales rose 6.7 percent, the most in
nearly a decade, helped by the launch of items such as extra
long pulled pork sandwiches and mozzarella bacon cheeseburgers
as well as the re-launch of chicken fries. ID:nPn3ZVVg4
The rise in Burger King's sales was in sharp contrast to a
0.7 percent drop in same-restaurant sales at McDonald's Corp
MCD.N , the world's biggest fast-food chain.
"I think (Burger King) has been more innovative with their
new product offerings than McDonald's has," said Stephens Inc
analyst William Slabaugh.
Burger King in March brought back chicken fries, taken off
the menu in 2012, due to strong demand from customers.
"... Our guests were telling us on Twitter (NYSE:TWTR) how much they
liked them," Chief Financial Officer Joshua Kobza said on a
post-earnings call.
Tim Hortons has also been adding new items such as crispy
chicken sandwiches and grilled paninis to boost lunch-time
traffic.
Menu items such as salads and wraps, which are healthier
than the fast-food at McDonald's and Yum Brands Inc's YUM.N
KFC, also helped Tim Hortons, analysts said.
Strong demand for new drinks such as creamy chocolate chill
beverage and for old favorite dark roast coffee also helped
drive a 5.5 percent rise in comparable sales at Tim Hortons.
Restaurant Brands was working with partners in the United
States to speed up Tim Hortons' expansion, Chief Executive
Daniel Schwartz said, without naming the partners.
The company opened 52 net new Tim Hortons restaurants and
141 net new Burger King restaurants in the three months ended
June 30.
Restaurant Brands, posting quarterly results for the third
time since Burger King's acquisition of Tim Hortons last August,
reported a second-quarter net profit compared with a
first-quarter loss.
On an adjusted basis, it earned 30 cents per share, beating
analysts' average estimate of 25 cents, according to Thomson
Reuters I/B/E/S.
Revenue rose nearly 12 percent to $1.04 billion, narrowly
beating analysts' expectations of $1.01 billion.
Restaurant Brands' shares closed 3.9 percent higher at
C$54.21, after touching a session high of C$56.09.
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(Editing by Anil D'Silva and Savio D'Souza)