Restaurant Brands International announced its third-quarter financial results, revealing a mixed performance across its restaurant brands. While the company saw positive growth from Burger King, struggles at Popeyes negatively impacted overall results. Following the announcement, shares fell approximately 2% in early trading.
The company’s adjusted earnings per share reached $1.10, slightly above the anticipated $1.09, while revenue was reported at $2.53 billion, marginally below the expected $2.54 billion. Net income for the quarter rose to $542 million, or $1.54 per share, compared to $315 million, or 96 cents per share, from the same period last year. Same-store sales growth was reported at 3.8% across all franchises, marking over five consecutive quarters of growth above 3%.
Despite broader industry challenges, including declining customer traffic due to high gas prices, Restaurant Brands did not identify significant shifts in consumer behavior. CEO Josh Kobza noted some stability in the market.
Burger King emerged as a strong performer, showing 8.4% same-store sales growth in the U.S., attributed to ongoing improvements in quality and menu offerings, including a successful relaunch of chicken nuggets. Tim Hortons also experienced modest growth of 1.8% in Canada, further aided by new product launches.
Conversely, Popeyes struggled with a 2.2% decline in same-store sales, facing competition from discounting rivals. Although efforts are underway to revamp operations and focus on core menu items, the timeline for returning to positive sales growth has been pushed back beyond previous forecasts.
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