Restaurant Brands International Thursday, the mixed quarterly results because the reductions in sales at comparable stores for Popeyes were offset by strong demand internationally and in Tim Hortons.
The actions of the company fell by more than 4% in the morning trade.
Here is what the company declared for the period ended on June 30 in relation to what Wall Street was expecting, on the basis of a survey of analysts by LSEG:
- Profit by action: 94 cents adjusted vs 97 cents expected
- Income: $ 2.41 billion against $ 2.32 billion expected
Restaurant brands have declared net quarter net income attributable to shareholders of $ 189 million, or 57 cents per share, compared to $ 280 million, or 88 cents per share, a year earlier.
By excluding the costs of transaction from its acquisition of Burger King China and other unique costs, the company has won 94 cents per share.
Net sales increased by 16% to 2.41 billion dollars.
Sales with comparable stores of the company, which only follow the metric of restaurants open at least one year, increased by 2.4% during the quarter.
CEO Josh Kobza told CNBC that restaurant brands had experienced a “modest improvement” of the consumption environment compared to the first quarter, when the three largest brands of the company saw a drop in sales at comparable stores.
This quarter, the international restaurants of restaurant Brands have declared sales growth at comparable stores of 4.2%.
Tim Hortons, which represents more than 40% of total restaurants in restaurants, said sales growth at 3.4% comparable stores. In April, the Canadian coffee channel launched the breakfast box loaded with blurred eggs, and the following month, it brought actor Ryan Reynolds to promote it, that leaders called a “great success”.
Burger King reported sales growth with comparable stores of 1.3%. Its American division, which has been in recovery mode for almost three years, has increased sales with comparable stores by 1.5%. Burger King’s domestic marketing focused on Whopper and targeting families with offers like his film meal “How to train Your Dragon”. More than half of its American restaurants have been renovated since the start of the turnaround; The hamburgers chain aims at 85% of its improved American footprint by 2028.
“We saw the turning point in Tims in Canada a few years ago, and we are working on this same type of turning point at Burger King US,” said the president of the Patrick Doyle restaurant brands at the company’s call conference.
Popeyes was the portfolio lagcard for the last quarter, reporting a drop in sales at 1.4%comparable stores. But the results of the FRIT chicken chain improved compared to the first three months of the year, when its sales with comparable stores slipped by 4%. To increase sales during the second half, Popeyes has a “pile of innovation” on its calendar, said Kobza. The channel has also tried to improve its store operations.
As the prices of beef increase and consumer preferences move away from red meat, fast food chains have been leaning into the chicken. McDonald’s released its McCrispy strips and brought back its snack envelopes, while Brands Yum Taco Bell launched crisp chicken nuggets.
The increase in competition has exerted pressure on Popeyes-and probably some of its greatest rivals, such as Chick-Fil-A, which does not disclose its quarterly results because it takes place.
During the full year, restaurant brands reiterated its forecasts, providing for it to spend between $ 400 and $ 450 million for consolidated capital expenses, tenants incentives and other incentives. The company also said that it was still planning to reach its long -term algorithm, which projects sales growth of 3% and 8% of organic operational income growth on average between 2024 and 2028.