September 25, 2022

Jose Cil, CEO of Restaurant Brands International, speaks on the New York Stock Exchange during an interview with CNBC on November 6, 2019.

Brendan McDermid | Reuters

Restaurant Brands International reported quarterly results on Friday that exceeded Wall Street’s expectations as system-wide revenue surpassed 2019 levels.

The company’s shares rose 3.2% in premarket trading.

The company reported, versus Wall Street expectations based on an analyst survey by Refinitiv:

  • Earnings per share: 55 cents adjusted compared to 50 cents expected
  • Revenue: $ 1.26 billion versus $ 1.25 billion expected

The company reported net income of $ 270 million, or 58 cents per share, for the first quarter, compared to $ 224 million, or 48 cents per share, a year earlier.

Without items, Restaurant Brands earned 55 cents per share, beating the analysts surveyed by Refinitiv, which was 50 cents per share.

Net sales rose 2.9% to $ 1.26 billion, beating expectations of $ 1.25 billion. The company said the increase in sales was mainly due to favorable foreign currency movements. Organic sales, which exclude the impact of foreign currency, decreased due to lower system-wide sales at Tim Hortons.

Tim Hortons saw sales in the same store decline 2.3% compared to a decrease of 10.3% in the same period last year. The Canadian coffee chain’s sales in the same store in its home market declined 3.3% in the quarter. Even before the pandemic, the chain was the laggard in Restaurant Brands’ portfolio. Tim Hortons has upgraded his coffee equipment and used his loyalty program to drive top-line growth in the mature Canadian market.

Burger King sales in the same store rose 0.7% for the quarter. A year earlier, sales in the same store fell 3.7% as pandemic lockdowns were introduced around the world. Globally, the burger chain saw an increase in temporary store closings this quarter. Revenue in the same store in the US was a ray of hope with a 6.6% increase.

And after a quarter of the staggering sales growth in the same store that resulted from the famous chicken sandwich, Popeyes came down to earth as it faced harsh comparisons with sales growth in the same store of 26.2% year over year. In the quarter, sales in the same store increased 1.5%. Sales in the same store in the US increased 0.9%.