Restaurant Brands International Summary
On Thursday, Restaurant Brands International reported a decline in quarterly revenue, missing analysts’ expectations for same-store sales across its brands, including Popeyes, Burger King, and Tim Hortons. CEO Josh Kobza stated that sales momentum has improved entering the second quarter, boosting confidence for the remainder of the year, which led to a modest share price increase of over 1%.
Key financial figures from the report included:
- Adjusted earnings per share of 75 cents versus the expected 78 cents.
- Net income of $159 million (49 cents per share), down from $230 million (72 cents per share) the previous year.
- Net sales rose 21% to $2.1 billion, spurred by Popeyes and Firehouse Subs.
Same-store sales saw minimal growth of 0.1%. Kobza indicated that Q1 would be the weakest quarter and noted macroeconomic challenges affecting sales.
Results from the company’s main brands showed declines; Tim Hortons experienced a 0.1% drop in same-store sales against expectations of 1.4% growth, while Burger King’s sales fell 1.3%, slightly worse than the anticipated 0.9% decline. In contrast, McDonald’s reported a 3.6% drop in U.S. same-store sales. Popeyes faced the largest decline at 4%, compared to a forecasted 1.8%.
International sales showed strength, with a 2.6% increase in same-store sales. The company reiterated its capital expenditure forecasts for 2025, aiming for sustainable growth of 3% in same-store sales and an 8% increase in organically adjusted operating profit from 2024 to 2028.
