June 7, 2023

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International Brands Restaurant Earnings (QSR) for the second quarter of 2022

International Brands Restaurant Earnings (QSR) for the second quarter of 2022

A sign is placed in front of a Burger King restaurant on February 15, 2022 in Daly City, California.

Justin Sullivan Getty Images

Brands International Restaurant On Thursday, it reported quarterly earnings and revenue that beat Wall Street expectations, buoyed by growth in international sales at Burger King and a recovery in Canada’s Tim Hortons locations.

In the US, the company said same-store sales were flat at Burger King and Popeyes.

The company’s shares were almost flat in pre-market trading.

Here’s what the company reported compared to what Wall Street was expecting, based on an analyst survey by Refinitiv:

  • Earnings per share: 82 cents adjusted vs. 73 cents expected
  • Revenue: $1.64 billion vs. $1.57 billion expected

Restaurant Brands reported second-quarter net income attributable to shareholders of $236 million, or 76 cents per share, down from $259 million, or 84 cents per share, in the prior year.

Excluding costs related to the acquisition of Firehouse Subs and other items, the company earned 82 cents per share.

Net sales It rose 14% to $1.64 billion. Global store sales across the company’s portfolio increased 9% in the first quarter, driven by the performance of Tim Hortons and Burger King.

Tim Hortons reported same-store sales growth of 12.2%, topping StreetAccount’s estimate of 8%. The Canadian coffee chain’s same-store sales rose 14.2% in the quarter. Tims, which accounts for about 60% of restaurant revenue, took longer to recover from the pandemic, in large part due to stricter restrictions in the local market.

Burger King’s department store sales rose 10% in the first quarter, beating Wall Street expectations of 3.4%. Outside the US, same-store sales rose 18.4%. But same-store sales in the domestic market have been steady. Restaurant Brands executives plan to share more details about Burger King’s transformation strategy in the United States in early September.

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Popeyes Louisiana Kitchen reported same-store sales growth of 1.4%, beating estimates of 0.3%. Like Burger King, Popeyes reported consistent same-store sales in the United States. The fried chicken chain has seen growth lags in recent quarters as it faces tough comparisons to the days prior to the pandemic, when the chicken sandwich fueled its soaring sales.

Firehouse Subs, the latest addition to the Restaurant Brands portfolio, saw same-store sales fall 1.4% in the quarter.

Read the full earnings report here.