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 were roughly flat 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.
Demand was stronger outside of the U.S. and Canada. Restaurant Brands’ international segment saw same-store sales growth of 2.6%.
The company reiterated its forecast for 2025, anticipating that it will spend between $400 million and $450 million on consolidated capital expenditures, tenant inducements and other incentives. Restaurant Brands also said that it still expects to reach its long-term algorithm, which expects 3% same-store sales growth and 8% organic adjusted operating income growth on average between 2024 and 2028.