Restaurant Brands International reported a 2.5% increase in same-store sales for the fourth quarter, surpassing expectations.
The growth was primarily fueled by strong performances from Burger King and Popeyes in the US. The company also reported quarterly adjusted earnings per share of 81 cents and revenue of $2.3 billion, both exceeding market forecasts.
Shares of Restaurant Brands rose about 3% in premarket trading following the earnings announcement.
Financial Highlights
- Earnings per share: 81 cents (adjusted), compared to the expected 79 cents
- Revenue: $2.3 billion, exceeding the $2.27 billion projected by analysts
- Net income: $361 million, or 79 cents per share, down from $726 million, or $1.60 per share, in the prior-year quarter
- Net sales: Increased 26%, driven by the acquisitions of its largest US Burger King franchisee and Popeyes China
Despite these acquisitions, all business segments outperformed expectations.
Performance by Brand
- Burger King U.S.: Same-store sales grew 1.5%, exceeding the 0.8% forecast, as the brand continues its turnaround efforts.
- Popeyes U.S.: Sales saw a modest 0.1% increase, reversing previous declines.
- Tim Hortons: Domestic same-store sales rose 2.5%, with the brand accounting for over 40% of the company’s revenue.
- International Sales: Grew 4.7%, surpassing estimates of 2.7%, led by Burger King and Popeyes.
Restaurant Brands expanded its global presence by adding 1,055 new restaurants, a 3.4% increase year-over-year. The company also continues investing in Burger King’s US store remodels, aiming to revamp up to 90% of locations by 2028.
Looking ahead, Restaurant Brands plans to spend between $400 million and $450 million on capital expenditures and incentives in 2025.
