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UPDATE 2-Burger King drives Restaurant Brands' profit beat

Published 2017-08-02, 09:55 a/m
© Reuters.  UPDATE 2-Burger King drives Restaurant Brands' profit beat
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Aug 2 (Reuters) - Restaurant Brands International Inc's QSR.TO QSR.N quarterly profit topped Wall Street estimates, driven mainly by higher sales at its Burger King chain.

Shares of Restaurant Brands, which also owns Tim Hortons and Popeyes Louisiana Kitchen, rose as much as 2.8 percent to C$76.28 on Wednesday.

The Whopper burger maker, which competes with McDonald's Corp (NYSE:MCD) MCD.N , reported a 4 percent rise in comparable sales in the second quarter, led by higher sales in the United States, where it has the majority of its restaurants.

Analysts at Consensus Metrix were expecting a 2.7 percent rise in comparable sales.

Like many other fast-food chains, Burger King has been trying to lure millennials by tapping mobile technologies and adding more options to its menu.

Sales did well in most international markets, Restaurant Brands Chief Executive Daniel Schwartz said, adding initiatives such as home delivery have been a steady revenue generator for the company.

Systemwide sales at Burger King's restaurants - which include company-owned, franchised and licensed outlets - rose 11 percent in the latest quarter ended June 30.

Tim Hortons and Popeyes Louisiana Kitchen, which is popular for its southern fried chicken, also reported an overall rise in sales. Restaurant Brands bought Popeyes for $1.8 billion in February to add variety to its portfolio.

The company also said it had signed a joint venture deal to launch Tim Hortons in Spain.

Apart from MacDonald's, Restaurant Brands competes with Yum Brands Inc YUM.N , Dunkin' Brands Group Inc DNKN.O and Starbucks Corp SBUX.O among others.

Restaurant Brands' total sales rose 9 percent to $1.13 billion in the quarter.

Adjusted net profit was 51 cents per share, topping analysts' average estimate of 45 cents per share, according to Thomson Reuters I/B/E/S.

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