A new Burger King restaurant is under construction in Tortosa, Spain, following BK parent company Restaurant Brands International Inc.’s current expansion into new and existing markets.
Joan Cross | Noor Photos | Getty Images
International restaurant brand Quarterly profit and revenue reported on Tuesday missed analysts’ expectations as domestic same-store sales growth at all four of its chains fell short of Wall Street expectations.
What’s this company reports Compared to Wall Street expectations, according to a survey of analysts by LSEG:
- Earnings per share: 93 cents adjusted, 95 cents expected
- Revenue: $2.29 billion, $2.31 billion expected
Restaurant Brands reported third-quarter net income attributable to common shareholders of $252 million, or 79 cents per share, unchanged from the same period last year.
Excluding items, the company earned 93 cents per share.
net sales It grew 24.7% to $2.29 billion, mainly due to the company’s acquisition earlier this year of its largest U.S. Burger King franchise and its Popeyes business in China.
The company’s global same-store sales grew only 0.3% this quarter. Burger King, Firehouse Subs and Popeyes all reported same-store sales declines in their home markets.
Burger King’s same-store sales fell 0.7%. Analysts had expected the gauge to be flat, according to StreetAccount estimates. The chain is in the process of turning a profit in the United States, but consumers are also spending less at restaurants, reigniting a value war between Burger King and its rivals.
Popeyes reported same-store sales fell 4%, well below expectations for 0.2% growth, according to StreetAccount estimates. In June, the chain introduced boneless wings as a permanent menu item for the first time in its history.
Firehouse Subs’ same-store sales fell 4.8% this quarter, compared with expectations for a 0.4% decline, according to StreetAccount. As of 2021, the sandwich chain is the newest addition to the Restaurant Brands portfolio and the smallest brand by footprint, with just 1,300 stores at the end of the third quarter.
Tim Hortons performed best, with domestic same-store sales growing 2.3%. But the Canadian coffee chain still fell short of Wall Street’s 4.1% same-store sales growth forecast.
Excluding the United States and Canada, Restaurant Brands’ international same-store sales grew 1.8% this quarter, slightly lower than the 2.2% expected.
This story is developing. Please check back for updates.
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