Restaurant Brands tops sales estimates as Burger King deals draw diners
QSR•Restaurant Brands International beat estimates for third-quarter comparable sales, which rose 3.8%, while Burger King’s U.S. comparable sales increased 8.4%. Adjusted earnings per share were $1.10, above the $1.09 estimate, while revenue of $2.53 billion was slightly below expectations.
1. Sales growth at Burger King
Value meals, marketing campaigns and new drinks helped draw diners to Burger King in the U.S., where comparable sales rose 8.4% in the quarter ended September 30, compared with a 3.2% increase a year earlier. Restaurant Brands’ overall comparable sales increased 3.8%, beating analysts’ 3.25% estimate.
2. Earnings and other chains
Adjusted earnings per share rose to $1.10 from $1.03 a year earlier, topping the $1.09 estimate. Revenue was $2.53 billion, slightly below the $2.54 billion estimate. Tim Hortons comparable sales rose 1.8% in Canada, while Popeyes comparable sales fell 2.2%. Restaurant Brands said it had funded $198 million of its plan to invest up to $700 million through 2028 in Burger King sales and franchisee profitability.
