Burger King, Tim Hortons Canada Drive Same-Store Sales Uptick of 2.5% for Restaurant Brands

Restaurant Brands International — parent company of Burger King, Popeyes, Tim Hortons, and Firehouse Subs — was bolstered by the performance of most of its brands to deliver same-store sales growth of 2.5% during its fourth-quarter earnings, according to CNBC.

The earnings report was mixed, overall. While Restaurant Brands beat Wall Street expectations in terms of earnings per share (EPS), at 81 cents adjusted versus 79 cents expected, as well as revenue ($2.3 billion versus $2.27 billion expected), it also saw a significant decline in net income. That figure was recorded at $361 million, against $726 million the year prior.

Net sales ticked upward by 26% to $2.3 billion, and this strong performance was largely chalked up to the acquisition of the company’s largest U.S. Burger King franchisee as well as Popeyes China.

Global Comparable Sales Rise by 2.5%, Mostly on the Back of Tim Hortons Canada and International Segment

As MarketWatch outlined, Restaurant Brands saw same-store sales comps rise by 2.5%, primarily on the back of excellent performance by Tim Hortons Canada, which grew by 2.5%, and the company’s international segment, which trended upward by 4.7%. North American performance of Popeyes and Firehouse subs declined slightly.

“If you look compared to all of our big, traditional [quick-service restaurant] peers, that 2.5% comp across the board was a pretty good outperformance for the quarter,” Restaurant Brands CEO Josh Kobza told CNBC.

Burger King Whopper Strategy Pays Off as McDonald’s Suffers E. Coli Woes

Per Bloomberg, Restaurant Brands is betting big on Burger King, pouring in more than $2 billion to revitalize and renew the brand after trailing both Wendy’s and McDonald’s. The parent company suggested that between 85% to 90% of Burger King restaurants will be renovated by the time 2028 draws to a close.

In tandem with a few select promotions, it appears that the investment has paid off. Burger King ran several successful promotions — including its ranch dip promo, the 1 million Whoppers for $1 deal, and Addams Family menu — while competitor McDonald’s suffered through an E. coli outbreak that imparted negative pressure on sales while dominating headlines. Results exceeded those posted by McDonald’s, as Bloomberg reported.

Burger King U.S. same-store sales hiked upward by 1.5%, beating analyst projections from StreetAccount of 0.8%, while McDonald’s same-store sales dipped by 1.4% and Yum! Brands partner brand KFC tumbled by a significant 5%.