Restaurant Brands earnings top estimates as international Burger King restaurants fuel sales growth

Restaurant Brands International on Thursday reported quarterly earnings and income that topped expectations, fueled by robust international growth.

Here is what the corporate reported for the interval ended Dec. 31 in contrast with what Wall Avenue was anticipating, primarily based on a survey of analysts by LSEG:

• Earnings per share: 96 cents adjusted vs. 95 cents anticipated
• Income: $2.47 billion vs. $2.41 billion anticipated

Restaurant Brands reported fourth-quarter web revenue attributable to shareholders of $113 million, or 34 cents per share, down from $259 million, or 79 cents per share, a 12 months earlier.

Excluding transaction prices, restructuring bills and different objects, the corporate reported adjusted earnings of 96 cents per share.

Web sales rose 7.4% to $2.47 billion. Stripping out foreign money fluctuations and sales from restaurants it plans to refranchise, Restaurant Brands’ natural income ticked up 6.5%.

The corporate’s same-store sales elevated 3.1%, fueled by robust international growth.

Exterior of the U.S. and Canada, Restaurant Brands’ same-store sales climbed 6.1%. International Burger King restaurants, which represents the majority of the phase, noticed same-store sales growth of 5.8%.

Analysts had been projecting international same-store sales growth of simply 3.7%, primarily based on StreetAccount estimates.

And Restaurant Brands plans to continue to grow its enterprise overseas. In November, the corporate introduced its plan to type a three way partnership for Burger King China to speed up enlargement. Below the phrases of the deal, which closed in late January, CPE, a Chinese language various asset supervisor, owns roughly 83% of Burger King China. Restaurant Brands has retained a minority stake of about 17%, together with a seat on the board of administrators.

Canadian espresso chain Tim Hortons reported same-store sales growth of two.9%, though Wall Avenue was projecting a rise of three.8%, based on StreetAccount. Tim Hortons accounted for 46% of Restaurant Brands’ general income throughout the quarter.

Burger King reported general same-store sales growth of two.7%, topping StreetAccount estimates of two.4%.

Popeyes was the laggard of Restaurant Brands’ portfolio. Its same-store sales fell 4.8%, a steeper decline than the two.4% lower forecast by Wall Avenue.

However the firm has plans to revive the embattled fried rooster chain. In November, Restaurant Brands tapped Burger King veteran Peter Perdue to steer the chain’s U.S. and Canadian enterprise; final month, the corporate additionally named Popeyes veteran Matt Rubin as the chain’s newest chief advertising and marketing officer.

Restaurant Brands plans to share extra of its concepts to develop the enterprise at its investor day in Miami on Feb. 26.