Global markets propel Restaurant Brands International

Global markets propel Restaurant Brands International

TORONTO — During the past quarter, Restaurant Brands International, Inc. benefited from the strong performance of its Tim Hortons Canada and Burger King international businesses, improvements at Burger King, Popeyes and Firehouse Subs in the United States, continued growth in digital sales and progress in new restaurant development.

Net income for the third quarter ended Sept. 30 was $530 million, or $1.17 per diluted share, compared with $329 million, or 70¢, in the prior year period. The increase is due to the current year income tax benefit compared to a prior year income tax expense, higher segment income from the Tim Hortons and Popeyes segments , the inclusion of revenue from the Firehouse Subs segment, a favorable change in other operating expenses and the non-recurrence of a loss on early extinguishment of debt. These factors were offset by unfavorable foreign exchange movements, lower Burger King segment revenue, increased stock-based compensation and non-cash incentive compensation expenses, corporate restructuring and tax advisory expenses. and an increase in interest expense.

Total revenue increased 16% from $1.5 billion to $1.7 billion.

“During the third quarter, we increased our consolidated same-store sales year-over-year by 9%, driven by 11% same-store sales at Tim Hortons Canada, 15% same-store sales at our international Burger King business and sequential improvements at Burger King, Popeyes and Firehouse Subs’ home markets,” Chief Executive Officer José E. Cil said in a Nov. 3 earnings call. trimester. “At Burger King US, we achieved comparable sales of 4% and continued to narrow the sales gap to our peers. Our digital channels also continued to contribute to our sales growth this quarter with sales digital sales up 26% year-over-year to nearly $3.4 billion, capturing a third of consolidated system-wide sales.

“We also made solid development progress in the third quarter with Popeyes once again outstanding and well positioned for another solid year. Looking to the future, we are confident in our long-term pipeline and expect to see our development mix strengthen, bringing Tim Hortons and Popeyes into more and more markets around the world, while bringing back Burger King at historic levels over time.

During the quarter, Burger King in the U.S. increased same-store sales thanks to its value platform, the launch of a crispy chicken sandwich, strategic pricing initiatives and the positive contribution from digital channels, Mr. Eyelash.

Price increases and menu innovation helped Tim Hortons achieve comparable sales growth of 10% over the prior year. Popeyes’ performance was supported by restaurant expansion in North America and several global markets.

“Since 2017, we have added over 650 net new units to our existing footprint in the domestic market while leveraging our development expertise and master franchise model to bring nearly 400 new restaurants to international markets,” Mr. Cil said of Popeyes. “Meanwhile, the team is also preparing to introduce Popeyes to key QSR chicken markets like Indonesia, South Korea and France in the coming months. Our development momentum has resulted in restaurant net growth of 9% and, coupled with comparable sales of 3%, including 1% comparable sales in the United States, has led to system-wide sales growth in 12% for the third quarter. »

Firehouse Subs, which Restaurant Brands acquired in 2021, had relatively flat comparable sales while beating strong comparable sales from the previous year, Mr. Cil said.

“The brand continued to generate around a third of its sales through digital channels this quarter, helped by successful initiatives such as Rewards Week, which included seven days of exclusive offers and points for our Firehouse Rewards members,” did he declare. “This was just one of the creative initiatives during the quarter to increase digital engagement while delivering high-quality, great-tasting products our customers know and love.”

In September, Restaurant Brands unveiled a plan to improve the performance of Burger King restaurants in the United States, pledging to invest $400 million over the next two years to support advertising, renovations, technology and digital enhancements to accelerate sales growth. and strengthen the long-term profitability of franchisees.

“We launched this in October, bringing our brand purpose to life with a new campaign that repositions the brand and elevates our core brand equity, ‘As You Want’, through the introduction of a modernized tagline” you rule,’” Mr. Cil said.

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