Key facts
- Restaurant Brands International exceeded second-quarter same-store sales growth expectations.
- Burger King's U.S. comparable sales increased by 8.5% in the quarter.
- Tim Hortons' comparable sales in Canada grew by 0.1%.
- Global comparable sales for Restaurant Brands grew 3.8% in the quarter.
- Quarterly revenue was $2.52 billion, with adjusted diluted earnings at $1.07 per share.
Restaurant Brands International surpassed second-quarter same-store sales growth expectations, driven by resilient demand at its U.S. Burger King chain. The company reported global comparable sales growth of 3.8% for the quarter ended June 30, exceeding analyst forecasts of about 3.0%.
Burger King's U.S. business benefited from value offers, including its "2 for $5" and "3 for $7" meal deals, which helped attract diners amid persistent inflation. Comparable sales at Burger King U.S. grew 8.5% for the quarter, compared with a 1.5% rise last year, significantly outpacing analyst expectations of about 3.5%.
Restaurant Brands has been investing in Burger King through remodels and marketing initiatives to revive sales. The company also emphasized value across its other brands, with Tim Hortons offering breakfast deals for C$3 and wrap meals for C$8.99. However, Tim Hortons reported only a 0.1% rise in comparable sales in Canada, down from 3.6% last year and below analyst expectations of a 1.5% increase.
The company reported quarterly revenue of $2.52 billion, slightly below estimates of $2.53 billion. Adjusted diluted earnings rose to $1.07 per share from 94 cents a year ago. Restaurant Brands faces cost pressures from rising commodity prices, including beef.
Fast-food chains are increasingly relying on value menus and promotions to attract customers facing higher living costs. While Restaurant Brands and Yum Brands reported positive results, McDonald's missed quarterly U.S. sales growth expectations due to execution challenges.