In this photo illustration, a Burger King Whopper hamburger is displayed on April 05, 2022 in San Anselmo, California. A federal lawsuit has been filed and is seeking class-action status alleging that fast food burger chain Burger King is misleading customers with imagery that portrays its food, including the Whopper burger, as being much larger than what is actually being served to customers.
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Restaurant Brands International on Tuesday reported quarterly earnings and revenue that beat analysts’ expectations, fueled by strong same-store sales growth from Burger King’s overseas restaurants.
Shares of the company were flat in premarket trading.
Here’s what the company reported compared with what Wall Street was expecting, based on a survey of analysts by Refinitiv:
- Earnings per share: 64 cents adjusted vs. 63 cents expected
- Revenue: $1.45 billion vs. $1.41 billion expected
Restaurant Brands reported first-quarter net income of $270 million, or 59 cents per share, down from $271 million, or 58 cents per share, a year earlier.
Excluding items, the company earned 64 cents per share, topping the 63 cents per share expected by analysts surveyed by Refinitiv.
Net sales rose 15.2% to $1.45 billion, beating expectations of $1.41 billion. This marked the first full quarter that Restaurant Brands’ acquisition of Firehouse Subs was included in its revenue.
Burger King saw its same-store sales climb by 10.3% in the quarter. Overseas, the chain’s same-store sales soared 20.1%. But its home market reported flat same-store sales as the chain embarks on a turnaround to rejuvenate demand.
Tim Hortons reported same-store sales growth of 8.4% for the quarter, which includes double-digit gains in Canada. The coffee chain has taken longer than Restaurant Brands’ other eateries to bounce back from the pandemic because of its home market’s Covid restrictions. A year ago, its same-store sales shrank by 2.3%.
Popeyes Louisiana Kitchen was once again the only chain in Restaurant Brands’ portfolio to report same-store sales declines. Worldwide, same-store sales shrank by 3%. However, the fried chicken chain also reported net restaurant growth of 7.9%. Only locations that have been open at least 13 months are included in its same-store sales metrics.