Restaurant Brands International (RBI) reported strong quarterly revenue on Thursday, exceeding analysts’ expectations, driven by robust sales at Tim Hortons and international locations. The company’s stock saw a 3% increase in morning trading following the announcement.
In a conference call with analysts, CEO Josh Kobza acknowledged that while the company aimed for higher top-line results, RBI outperformed key competitors in major markets. The company’s revenue for the quarter was $2.08 billion, surpassing the expected $2.02 billion. However, adjusted earnings per share fell slightly short of predictions, coming in at 86 cents versus the expected 87 cents.
RBI’s net income for the second quarter rose to $399 million, or 88 cents per share, compared to $351 million, or 77 cents per share, a year earlier. The 17% increase in net sales was attributed to recent acquisitions, particularly of Burger King restaurants in the U.S. The company’s same-store sales saw a modest increase of 1.9%.
Tim Hortons led the company’s performance, with a 4.6% growth in same-store sales, bolstered by new offerings such as flatbread pizzas and an expanded cold beverage menu. Popeyes reported a 0.5% rise in same-store sales, driven by the popularity of its new boneless wings, although Burger King and Firehouse Subs experienced slight declines of 0.1%.
Kobza noted that while Burger King’s sales and traffic were below expectations, the brand continued to outperform other burger quick-service restaurants and is undergoing significant changes as part of a broader turnaround strategy.
Looking ahead, RBI anticipates same-store sales growth of approximately 2% for the second half of the year. The recent acquisition of Popeyes China will be reflected in the company’s next quarterly results.
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