A new Burger King restaurant is under construction in Tortosa, Spain, following the current expansion of Restaurant Brands International Inc. – Parent company of BK – in new and existing markets.
Joan Cross | Nour Photo | Getty Images
International restaurant brands On Tuesday, it reported quarterly earnings and revenue that beat analysts' expectations as domestic store sales growth for all four of its chains fell short of Wall Street estimates.
Here's what the company reported compared to what Wall Street was expecting, based on a survey of analysts conducted by LSEG:
Earnings per share: 93 cents adjusted vs. 95 cents expected Revenue: $2.29 billion vs. $2.31 billion expected
Restaurant Brands reported third-quarter net income attributable to common shareholders of $252 million, or 79 cents per share, unchanged from the prior year.
Excluding items, the company achieved profit of 93 cents per share.
Net sales rose 24.7% to $2.29 billion, thanks in large part to the company's acquisition of the largest Burger King franchisee in the United States and Popeyes' business in China earlier this year.
Worldwide same-store sales grew just 0.3% in the quarter. Burger King, Firehouse Subs and Popeyes all reported lower same-store sales in their home markets.
Burger King's same-store sales fell 0.7%. The chain is in the middle of a turnaround in the U.S., but consumers are also spending less at restaurants, reigniting value wars between Burger King and its rivals.
Popeyes reported same-store sales down 4%. In June, the chain launched boneless wings as a permanent menu item for the first time in its history.
Firehouse Subs saw its same-store sales shrink 4.8% in the quarter. The sandwich chain is the newest addition to the Restaurant Brands portfolio, as of 2021, and the smallest brand by footprint with just 1,300 locations as of the end of the third quarter.
Tim Hortons was the top performer, with domestic same-store sales growth of 2.3%. But the Canadian coffee chain still fell short of Wall Street's same-store sales growth forecast of 4.1%, based on StreetAccount estimates.
Outside the U.S. and Canada, Restaurant Brands' international store sales rose 1.8% in the quarter, slightly below estimates of 2.2%.
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