© Reuters. FILE PHOTO: A sign advertising the soy based Impossible Whopper is seen outside a Burger King in New York, U.S., August 8, 2019. REUTERS/Shannon Stapleton/File Photo
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(Reuters) -Restaurant Brands International beat Wall Street estimates for quarterly revenue and profit on Tuesday, helped by efforts to turn around its Burger King business and robust demand at Tim Hortons.
The company in September 2022 set the ball rolling on a revamp at Burger King that included remodeling stores and tailoring marketing to draw more younger customers to boost sales amid intense rivalry with McDonald’s (NYSE:).
Cheaper snack items at Burger King such as the Crispy Wraps and deals like the ‘$5 Duo’ meal have also pulled in American diners seeking affordable meal options when household budgets remain under pressure from high food prices.
Total same-store sales at the Burger King division rose 6.3%, beating estimates of a 5.87% increase, per LSEG data.
Meanwhile, steady demand for cold drinks, donuts and breakfast bundles at Tim Hortons drove a same-store sales growth of 8.4% in the three months ended Dec. 31 at the coffee chain against expectations of 4.36%.
Placer.ai data also showed traffic rose marginally at Tim Hortons in the quarter, with the brand outperforming the broader decline in footfall at fast-food restaurants.
However, Restaurant Brands (NYSE:), like other fast-food majors including McDonald’s, signaled pressure on its international business due to the Israel-Hamas conflict.
Comparable sales growth in Restaurant Brands’ international segment slowed to 4.6% from 10.5% a year earlier.
Total revenue rose to $1.82 billion in the fourth quarter from $1.69 billion, compared with analysts’ average estimate of $1.81 billion.
Net income rose to $726 million, or $1.60 per share, in the quarter, from $336 million, or 74 cents per share, a year earlier.
Excluding items, Restaurant Brands earned 75 cents per share, exceeding estimates of 73 cents.
