Travelers order food at an automated self-service kiosk in fast food restaurant chain Burger King.
Bundrul Chukrut | LightRocket | Getty Images
Restaurant Brands International posted quarterly earnings on Monday that failed to meet analysts' expectations during Tim Horton's ongoing bouts.
The company's shares fell in pre-market trading by almost 4%.
"Overall, we are confident about the long-term growth prospects for each of our three brands and continue to focus on providing guests with an outstanding experience while increasing the profitability of the franchisee," said CEO Jose Cil in a statement ,
Here's the company Compared with what Wall Street expected, based on an analyst survey by Refinitiv:
- Earnings per share: 55 cents, adjusted, compared with 58 cents
- Revenue: 1
Burger King's parent company posted net income of $ 246 million, or 53 cents per share, in the first quarter, compared to $ 278.6 million or 59 cents a share a year earlier. The company attributed the decline to higher tax expenses.
Excluding the cost of acquiring Popeyes Louisiana Kitchen, moving its support center, and other unique editions, Restaurant Brands earns 55 cents a share, with analysts' expected 58 cents a share missing from Refinitive.
Net sales increased 1% to $ 1.27 billion, exceeding expectations of $ 1.26 billion. Restaurant Brands said currency fluctuations drove sales growth.
Burger King and Popeyes reported that sales growth in the same store exceeded estimates, but Tim Hortons missed out. Popeyes reported that sales in the same stores grew by 0.6% and exceeded estimates by 0.1%. Burger King, the company's largest chain, posted 2.2% sales growth in the same stores, exceeding Wall Street expectations of 1.8%. The burger chain also announced Monday that it plans to launch their Impossible Whopper nationwide by the end of 2019, which is made from blood-spun patties. The company said the results of the test in St. Louis served to sell Impossible Whopper as a supplement to the traditional Whopper.
Tim Hortons' revenue, which had been open for at least a year, declined 0.6%, but analysts anticipated 2% revenue growth in the same store. Executives said that the storm across Canada impacted sales growth in stores by 1%. Executives also said additional investment in the Roll up the Rim raffle would not have led to the expected exposure.
As the Canadian coffee chain slows down in its home market, Restaurant Brands is trying to conquer the fast-growing Chinese market with the first three stores there and plans to open 1,500 across China over the next decade. Tim Hortons accounts for almost 60% of the company's total revenue.