Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Burger King-Owner Restaurant Brands Hit by Burger King’s Sales Miss, Staff Woes

Published 2021-10-25, 11:20 a/m
Updated 2021-10-25, 11:20 a/m
© Reuters.

© Reuters.

By Dhirendra Tripathi

Investing.com – Restaurant Brands stock (NYSE:QSR) fell 4% Monday after the company’s third-quarter revenue fell short of expectations on a combination of factors ranging from the Delta variant of coronavirus keeping customers home to more aggressive competition.

July through September total revenue rose to $1.49 billion from $1.33 billion in the 2020 quarter. Analysts had estimated it to come in at $1.52 but sales were weaker as the Delta variant spread and sales fell short of expectations at its Burger King restaurants.

The company said certain markets continue to be affected, and it expects local conditions to continue to dictate limitations on restaurant operations, capacity, and hours of operation.

It said it expects to see a continued impact from Covid-19 on its results in 2021 and will invest more in its digital and marketing capabilities. For most retailers, while online sales have come off from the pandemic-time elevated sales, they continue to be higher than the pre-pandemic period, suggesting the online embrace is here to stay.

Adjusted profit rose around 10%, to $353 million.

Burger King has tried to compete with rivals like McDonald’s (NYSE:MCD) but the effort has faced challenges, and not just from competition. Its newly launched hand-breaded chicken sandwich is considered a labor-intensive product, a tough proposition to straddle at the time of staff-crunches and higher salaries.

On its part, McDonald’s has toyed with its menu and been more aggressive with campaigns, collaborating with popular South Korean boy band BTS to pull in customers.

Same-store sales at coffee chain Tim Hortons, the biggest revenue-maker out of Restaurant Brands’ three brands, jumped around 9%, while Burger King’s rose nearly 8%.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.