Restaurant Brands International (QSR) Q2 2022 Results
A sign is displayed outside a Burger King restaurant on February 15, 2022 in Daly City, California.
Justin Sullivan | Getty Images
On Thursday, Restaurant Brands International reported quarterly earnings and revenue that beat Wall Street expectations, fueled by growth in Burger King’s international sales and the recovery of Tim Hortons’ Canadian locations.
In the United States, the company said comparable store sales were flat at Burger King and Popeyes.
Shares of the company were roughly flat in premarket trading.
Here’s what the company reported compared to what Wall Street expected, based on a Refinitiv analyst survey:
- Earnings per share: 82 cents adjusted vs. 73 cents expected
- Revenue: $1.64 billion vs $1.57 billion expected
Restaurant Brands reported second-quarter net income attributable to shareholders of $236 million, or 76 cents per share, compared with $259 million, or 84 cents per share, a year earlier.
Excluding costs related to its acquisition of Firehouse Subs and other items, the company earned 82 cents per share.
Net sales rose 14% to $1.64 billion. Global same-store sales across the company’s portfolio increased 9% in the quarter, driven by the performance of Tim Hortons and Burger King.
Tim Hortons reported comparable store sales growth of 12.2%, beating StreetAccount estimates of 8%. The coffee chain’s Canadian same-store sales increased 14.2% in the quarter. Tims, which accounts for about 60% of Restaurant Brands’ revenue, has taken longer to recover from the pandemic, largely due to tighter restrictions in its domestic market.
Burger King’s same-store sales rose 10% in the quarter, beating Wall Street expectations of 3.4%. Outside the United States, same-store sales increased 18.4%. But same-store sales in its home market remained flat. Restaurant Brands executives plan to share more details about its turnaround strategy for Burger King’s U.S. restaurants in early September.
Popeyes Louisiana Kitchen posted same-store sales growth of 1.4%, beating estimates of 0.3%. Like Burger King, Popeyes saw flat same-store sales in the United States. The fried chicken chain has been stunted in recent quarters as it faces tough comparisons to the early days of the pandemic, when its chicken sandwich fueled the sales surge.
Firehouse Subs, the newest addition to the Restaurant Brands portfolio, saw same-store sales drop 1.4% in the quarter.
Read the full earnings report here.