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Restaurant Manufacturers Worldwide (QSR) This fall 2023 earnings

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A normal view of a Tim Hortons Drive-Via coffeehouse and restaurant at Lakeside Retail Park on February 5, 2024 in Grays, United Kingdom.

John Keeble | Getty Pictures

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Restaurant Brands International reported quarterly earnings and income that beat analysts’ expectations on Tuesday, fueled by stronger-than-expected Tim Hortons gross sales.

Shares of the corporate have been unchanged in premarket buying and selling.

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This is what the corporate reported in contrast with what Wall Road was anticipating, primarily based on a survey of analysts by LSEG, previously generally known as Refinitiv:

  • Earnings per share: 75 cents adjusted vs. 73 cents anticipated
  • Income: $1.82 billion vs. $1.81 billion anticipated

Restaurant Manufacturers reported fourth-quarter internet earnings attributable to shareholders of $508 million, or $1.60 per share, up from $229 million, or 74 cents per share, a yr earlier.

Excluding gadgets, the corporate earned 75 cents per share.

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Internet gross sales rose 8% to $1.82 billion.

This quarter marks the primary time that Restaurant Manufacturers shared its outcomes utilizing its new reporting construction. The corporate now discloses the outcomes for its particular person manufacturers within the U.S. and Canada and lumps all of its worldwide places collectively below its “worldwide” phase.

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Tim Hortons’ same-store gross sales elevated 8.4% within the quarter, topping StreetAccount estimates of 4.7%. The Canadian espresso chain is usually the most important contributor to Restaurant Manufacturers’ income. Whereas greatest identified for its sizzling espresso and breakfast meals, Tims continued to develop gross sales of its chilly drinks and afternoon snacks, Restaurant Manufacturers CEO Josh Kobza advised CNBC.

Burger King reported same-store gross sales progress of 6.3%. The chain’s U.S. enterprise is now greater than a yr right into a turnaround plan that features transforming eating places and spending more cash on promoting. Burger King’s U.S. places noticed site visitors progress for the quarter, one signal that the technique is working.

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“That is one thing we have not seen for some time and is completely different from the place a number of of our rivals have been, in order that was a giant spotlight for me within the quarter,” Kobza mentioned.

Burger King U.S. President Tom Curtis advised CNBC that the patron was resilient within the fourth quarter, however nonetheless all for good offers.

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“I feel, for us, that was most likely one of many causes behind our relative success in This fall with the Royal Crispy Wraps,” he mentioned.

Restaurant Manufacturers additionally not too long ago acquired Burger King’s largest U.S. franchisee, Carrols Restaurant Group, in a $1 billion deal to assist the chain renovate places even quicker.

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Popeyes’ same-store gross sales grew 5.5% within the quarter. The fried rooster chain launched rooster wings as a everlasting menu merchandise in the course of the interval. The wings have been the main target of Popeyes’ first-ever Super Bowl commercial, which aired in the course of the recreation Sunday.

Restaurant Manufacturers reported worldwide same-store gross sales progress of 4.6%.

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