A Burger King restaurant is seen on October 25, 2024 in New York City.
Michael M. Santiago | Getty Images
Restaurant Brands International on Thursday reported quarterly earnings and revenue that missed analysts’ expectations as same-store sales of Popeyes, Burger King and Tim Hortons declined.
Shares of the company fell more than 2% in premarket trading.
Here’s what Restaurant Brands reported compared with what Wall Street was expecting, based on a survey of analysts by LSEG:
- Earnings per share: 75 cents adjusted vs. 78 cents expected
- Revenue: $2.11 billion vs. $2.13 billion expected
Restaurant Brands reported first-quarter net income attributable to shareholders of $159 million, or 49 cents per share, down from $230 million, or 72 cents per share, a year earlier.
Excluding transaction costs related to its acquisition of Burger King China and other items, the company earned 75 cents per share.
Net sales climbed 21% to $2.11 billion, fueled by higher revenue from Popeyes and Firehouse Subs.
Restaurant Brands posted overall same-store sales growth of 0.1%, but its three largest brands saw same-store sales decline during the quarter and missed Wall Street’s expectations. Other fast-food companies have reported a rough start to the year as weather and a more cautious consumer weighed on demand for their burgers and nuggets.
Tim Hortons, which accounts for more than 40% of Restaurant Brands’ total quarterly revenue, reported that its same-store sales fell 0.1%, missing StreetAccount estimates of same-store sales growth of 1.4%.
Burger King’s same-store sales shrank 1.3%, steeper than estimates of a 0.9% decline. The chain’s U.S. business, which has been in turnaround mode for more than two years, saw same-store sales fall 1.1%.
Popeyes saw its same-store sales slide 4%, the biggest drop of the quarter. Wall Street was anticipating same-store sales declines of just 1.8% for the fried chicken chain.
