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Burger King-parent Restaurant Brands misses third-quarter earnings estimates

Published 2024-11-05, 07:10 a/m
© Reuters.
QSR
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Investing.com - Shares in Restaurant Brands (NYSE:QSR) slipped in premarket US trading on Tuesday after the Burger King-parent unveiled third-quarter financial results that missed analysts' expectations.

In the three months ended on Sept. 30, the owner of popular Canadian coffee chain Tim Hortons reported a 24.7% increase in total revenue compared to the year-ago period to $2.29 billion, although this was below Bloomberg consensus estimates of $2.32 billion.

Boosting the top-line returns were the firm's recent acquisitions of its biggest Burger King franchisee in the US and its Popeyes operations in China, Restaurant Brands noted.

Comparable sales at Tim Hortons, a key demand driver, came in at 2.3% despite attempts to refresh its menu options to entice customers.

Burger King, which rolled out a $5 value meal earlier this year to attract more inflation-hit diners, posted a 0.7% dip in comparable sales. Restaurant Brands has been pushing to overhaul the business, including through store remodelings and equipment upgrades.

Group-wide, comparable sales expanded by 0.3%, well under expectations of 1.89%.

Adjusted earnings before interest, tax, depreciation and amortization rose by 7.2% to $748 million, versus forecasts of $753.9 million.

Still, Chief Executive Officer Josh Kobza said in a statement that the results displayed the "resilience" of the company, adding it remains confident that it will achieve 8% or more in adjusted operating income growth in 2024 "and beyond."

"We remain focused on providing great value for guests, improving franchisee profitability, and investing in our brands for the long-term," Kobza added.

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