Restaurant Brands International reported mixed fiscal third-quarter results Thursday, with Burger King posting U.S. same-store sales growth of 8.4% while Popeyes' U.S. same-store sales fell 2.2%.
The company reported adjusted earnings per share of $1.10, beating the $1.09 expected by analysts surveyed by LSEG. Revenue came in at $2.53 billion, slightly below the $2.54 billion forecast. Net income attributable to common shareholders rose to $542 million, or $1.54 per share, from $315 million, or 96 cents per share, a year earlier. Excluding certain non-cash items, adjusted EPS was $1.10.
Restaurant Brands' portfolio includes the Burger King, Popeyes and Tim Hortons chains. Burger King's home market is in the middle of a multiyear turnaround focused on improving its food and restaurants. The burger chain's U.S. same-store sales growth of 8.4% was the strongest in the portfolio. Tim Hortons reported same-store sales growth of 1.8% in Canada, its home market.
Popeyes was once again the laggard of Restaurant Brands' portfolio. The fried chicken chain has struggled as rivals lure away customers with discounts. Restaurant Brands is trying to stage a comeback at Popeyes through improved restaurant operations and a focus on its core menu.
The company's international business reported same-store sales growth of 3.9%, fueled by its Burger King locations. Overall, across all restaurants, same-store sales rose 3.8%.
Analysis
Why This Matters
- Burger King's continued improvement signals that a major fast-food brand can reverse declining sales through operational and menu investments, offering a template for other legacy chains.
- Popeyes' struggles highlight the intense price competition in the fried chicken segment, where rivals like KFC and Chick-fil-A have used discounts and promotions to win customers.
- The mixed results show the uneven recovery across Restaurant Brands' portfolio, which could affect franchisee sentiment and future investment decisions.
Background
Restaurant Brands International is one of the world's largest quick-service restaurant companies, operating over 27,000 outlets in more than 100 countries under the Burger King, Tim Hortons and Popeyes brands. Burger King's U.S. turnaround, launched several years ago, has focused on food quality improvements, restaurant remodels and digital initiatives. Popeyes has faced growing competition in the chicken category, with rivals aggressively discounting to capture market share.
What to Watch
- Whether Popeyes' operational improvements and focus on core menu can reverse its same-store sales decline in the coming quarters.
- If Burger King's U.S. momentum can be sustained as the turnaround progresses and comparisons become tougher.
- How Restaurant Brands' international expansion, particularly for Burger King, continues to perform as a growth driver.
Checked
12 claims in this story checked against 1 source: 12 supported.
Show each claim
- SupportedBurger King’s U.S. turnaround is showing success.Business News: “Restaurant Brands International on Thursday reported mixed quarterly results as Popeyes' struggles offset Burger King's successful U.S. turnaround .”
- SupportedPopeyes is struggling.Business News: “Restaurant Brands International on Thursday reported mixed quarterly results as Popeyes' struggles offset Burger King's successful U.S. turnaround .”
- SupportedRestaurant Brands reported mixed fiscal third-quarter results on Thursday.Business News: “Restaurant Brands International on Thursday reported mixed quarterly results”
- SupportedBurger King’s U.S. same-store sales grew 8.4%.Business News: “Burger King was the top performer, with U.S. same-store sales growth of 8.4%.”
- SupportedPopeyes’ U.S. same-store sales fell 2.2%.Business News: “The fried chicken chain's U.S. same-store sales fell 2.2%.”
- SupportedAdjusted earnings per share of $1.10 beat analysts’ $1.09 expectation.Business News: “Earnings per share: $1.10 adjusted vs. $1.09 expected”
- SupportedRevenue of $2.53 billion came in below the $2.54 billion forecast.Business News: “Revenue: $2.53 billion vs. $2.54 billion expected”
- SupportedSame-store sales across all restaurants grew 3.8%.Business News: “Across all of its restaurants, the company reported same-store sales growth of 3.8%.”
- SupportedNet income attributable to common shareholders rose to $542 million from $315 million a year earlier.Business News: “Restaurant Brands reported fiscal third-quarter net income attributable to common shareholders of $542 million, or $1.54 per share, up from $315 million, or 96 cents per share, a year earlier.”
- SupportedNet income per share rose to $1.54 from 96 cents a year earlier.Business News: “Restaurant Brands reported fiscal third-quarter net income attributable to common shareholders of $542 million, or $1.54 per share, up from $315 million, or 96 cents per share, a year earlier.”
- SupportedTim Hortons’ same-store sales grew 1.8% in Canada.Business News: “Tim Hortons reported same-store sales growth of 1.8% in Canada, its home market.”
- SupportedRestaurant Brands’ international business had same-store sales growth of 3.9%, fueled by Burger King locations.Business News: “The company's international business saw same-store sales growth of 3.9%, fueled by its Burger King locations.”
