Latest news with #RestaurantBrands
Time of India
08-08-2025
- Business
- Time of India
Restaurant Brands beats quarterly sales estimates on improving fast-food demand
Restaurant Brands beat quarterly revenue estimates on Thursday, as its marketing efforts boosted demand at Burger King and other brands in the U.S. and international markets. However, higher expenses drove an earnings miss, and sent the company's U.S.-listed shares down about 3% in early trading. The company leaned on movies such as 'How to train your Dragon' and partnerships with actor Ryan Reynolds, to attract customers in core regions such as the U.S. and Canada. Value-meal deals starting at $5, also introduced by major fast-food chains Yum Brands and McDonald's as consumer spending in the U.S. sees a decline, boosted foot traffic at Burger King. The Trump administration's unpredictable trade policies have disrupted business operations and shaken consumers, especially lower-income groups, who are increasingly seeking bargains and scaling back on dining out plans as they grapple with rising prices. "We saw a bit softer performance in some of the lower-income cohorts in the U.S., and a little bit of better performance in the middle and higher income groups," Restaurant Brands CEO Josh Kobza told Reuters. The company logged an adjusted profit of 94 cents per share, above 86 cents a year ago, but missed analysts' estimates of 97 cents per share, also hurt by higher costs from supply chain and commodities such as beef and coffee. It posted revenue of $2.41 billion in the quarter ended June 30, beating analysts' estimates of $2.32 billion, according to data compiled by LSEG. Quarterly same-store sales at Burger King outlets in the U.S., rose 1.5%, after rising just 0.1% a year ago. Comparable sales in the company's international segments, which include restaurant chains such as Burger King and Popeyes, rose 4.2%, compared with a 2.6% rise a year ago.
New York Post
07-08-2025
- Business
- New York Post
Burger King, Popeyes parent company RBI suffers mass earnings fall as expenses continue to rise
Burger King owner Restaurant Brands International said higher expenses squeezed profit margins during the second quarter — leaving investors with mixed signals about the company's performance. The parent company behind popular chains including Tim Hortons, Popeyes and Firehouse Subs said it generated total revenue of $2.41 billion for the three-month period that ended in June, above analysts' estimates of $2.32 billion, according to data compiled by LSEG. US quarterly same-store sales from Burger King, the company's second biggest revenue generator, rose 1.5%, after rising just only 0.1% a year ago. Advertisement 4 Restaurant Brands International, which owns Burger King, Popeyes, Tim Hortons, and Firehouse Subs, reported mixed second-quarter earnings. NurPhoto via Getty Images Value-meal deals starting at $5, also introduced by major fast-food chains Yum Brands and McDonald'sas consumer spending declined, boosted foot traffic at Burger King. Comparable sales in Restaurant Brands international segments rose 4.2%, compared with a 2.6% rise a year ago. Advertisement But things looked less rosy when it came to profit. The company made $189 million for shareholders this quarter, down from $280 million at the same time last year. Earnings per share dropped to 58 cents, compared to 88 cents a year ago. The Post has sought comment from Restaurant Brands. 4 Tim Hortons helped drive Restaurant Brands' revenue jump, with strong Canadian sales boosted by a popular Ryan Reynolds breakfast promotion. JHVEPhoto – Advertisement Earnings declined despite several positive metrics that suggest underlying business strength. Tim Hortons locations in Canada performed particularly well, posting comparable sales growth of 3.6% while international Burger King restaurants achieved an even stronger 4.1% increase. The Canadian chain has enjoyed a successful partnership with actor and business mogul Ryan Reynolds, whose 'Ryan's Scrambled Eggs Loaded Breakfast' has proven to be popular with consumers north of the border. 4 Popeyes Louisiana Kitchen contributed to the company's 5.3% increase in global sales, though profitability remained under pressure. Eduardo Barraza – Advertisement Total sales across Restaurant Brands properties rose 5.3%. Sales outside North America were especially strong, jumping 9.8%. The company's adjusted operating income provided another bright spot, climbing to $668 million from $632 million in the prior year period — a nearly 6% rise. This improvement indicates that while overall profitability faced headwinds, the core restaurant operations generated higher earnings before accounting for various one-time charges and adjustments. 4 Comparable sales across all restaurant brands in the RBI portfolio increased by 2.4%. RBI Company leaders said the boost in performance came from smarter marketing, smoother operations and stronger teamwork with franchise owners — especially overseas, where growth has been the strongest. But even with more customers and higher spending, profits still dropped because the cost of running the business grew faster than sales. Restaurant Brands says it's still confident about where the company is headed, even though its latest earnings were a mix of good and bad news. Advertisement It expects to grow profits by at least 8% this year. Company executives believe current challenges such as rising costs are short-term problems, not long-term ones. Like many fast food companies, Restaurant Brands is dealing with higher wages, more expensive supplies and tougher competition.
Yahoo
07-08-2025
- Business
- Yahoo
Restaurant Brands (NYSE:QSR) Surprises With Q2 Sales
Fast-food company Restaurant Brands (NYSE:QSR) reported Q2 CY2025 results topping the market's revenue expectations , with sales up 15.9% year on year to $2.41 billion. Its non-GAAP profit of $0.94 per share was 2.8% below analysts' consensus estimates. Is now the time to buy Restaurant Brands? Find out in our full research report. Restaurant Brands (QSR) Q2 CY2025 Highlights: Revenue: $2.41 billion vs analyst estimates of $2.34 billion (15.9% year-on-year growth, 2.9% beat) Adjusted EPS: $0.94 vs analyst expectations of $0.97 (2.8% miss) Operating Margin: 20%, down from 31.9% in the same quarter last year Free Cash Flow Margin: 17.1%, up from 14% in the same quarter last year Locations: 32,229 at quarter end, up from 31,324 in the same quarter last year Same-Store Sales rose 2.4% year on year, in line with the same quarter last year Market Capitalization: $22.48 billion Company Overview Formed through a strategic merger, Restaurant Brands International (NYSE:QSR) is a multinational corporation that owns three iconic fast-food chains: Burger King, Tim Hortons, and Popeyes. Revenue Growth Reviewing a company's long-term sales performance reveals insights into its quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years. With $9.11 billion in revenue over the past 12 months, Restaurant Brands is one of the most widely recognized restaurant chains and benefits from customer loyalty, a luxury many don't have. Its scale also gives it negotiating leverage with suppliers, enabling it to source its ingredients at a lower cost. As you can see below, Restaurant Brands grew its sales at a decent 9% compounded annual growth rate over the last six years (we compare to 2019 to normalize for COVID-19 impacts) as it opened new restaurants and increased sales at existing, established dining locations. This quarter, Restaurant Brands reported year-on-year revenue growth of 15.9%, and its $2.41 billion of revenue exceeded Wall Street's estimates by 2.9%. Looking ahead, sell-side analysts expect revenue to grow 2.9% over the next 12 months, a deceleration versus the last six years. This projection is underwhelming and suggests its menu offerings will face some demand challenges. Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we've identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link. Restaurant Performance Number of Restaurants Restaurant Brands sported 32,229 locations in the latest quarter. Over the last two years, it has opened new restaurants at a rapid clip by averaging 3.7% annual growth, among the fastest in the restaurant sector. Additionally, one dynamic making expansion more seamless is the company's franchise model, where franchisees are primarily responsible for opening new restaurants while Restaurant Brands provides support. When a chain opens new restaurants, it usually means it's investing for growth because there's healthy demand for its meals and there are markets where its concepts have few or no locations. Same-Store Sales A company's restaurant base only paints one part of the picture. When demand is high, it makes sense to open more. But when demand is low, it's prudent to close some locations and use the money in other ways. Same-store sales gives us insight into this topic because it measures organic growth at restaurants open for at least a year. Restaurant Brands's demand has been healthy for a restaurant chain over the last two years. On average, the company has grown its same-store sales by a robust 3.1% per year. This performance suggests its rollout of new restaurants could be beneficial for shareholders. When a chain has demand, more locations should help it reach more customers and boost revenue growth. In the latest quarter, Restaurant Brands's same-store sales rose 2.4% year on year. This performance was more or less in line with its historical levels. Key Takeaways from Restaurant Brands's Q2 Results We enjoyed seeing Restaurant Brands beat analysts' revenue expectations this quarter. We were also happy its same-store sales was in line with Wall Street's estimates. On the other hand, its EPS slightly missed. Overall, this print was mixed. Investors were likely hoping for more, and shares traded down 4.9% to $65.22 immediately after reporting. Should you buy the stock or not? When making that decision, it's important to consider its valuation, business qualities, as well as what has happened in the latest quarter. We cover that in our actionable full research report which you can read here, it's free. Sign in to access your portfolio
CTV News
07-08-2025
- Business
- CTV News
Restaurant Brands beats quarterly sales estimates on improving fast-food demand
Restaurant Brands beat second-quarter revenue estimates on Thursday, as its marketing efforts drove demand at Burger King and other brands in the U.S. and international markets. The company ramped up its advertising and promotional efforts, leaning on movies such as 'How to train your Dragon' and partnerships with actor Ryan Reynolds, to attract customers in core regions such as the U.S. and Canada. Like most major fast-food chains, including Yum Brands and McDonald's, Burger King has also introduced value-meal deals starting at US$5 to boost foot traffic as consumer spending in the U.S. sees a decline amid concerns over tariff-related impact. Restaurant Brands posted quarterly revenue of $2.41 billion, beating analysts' estimates of $2.32 billion, according to data compiled by LSEG. However, its adjusted profit of 94 cents per share missed analysts' estimates of 97 cents, owing to increased advertising expenses coupled with higher costs from supply chain and commodities such as beef and coffee. McDonald's beat quarterly global same-store sales estimates on the back of increased affordable meal bundles and promotions, while Taco Bell parent Yum Brands took a hit from muted spending. Quarterly same-store sales at Burger King outlets in the U.S., the company's biggest revenue-generating region, rose 1.5 per cent, compared to a 0.1 per cent increase a year ago. Increased marketing investments also helped Restaurant Brands in lifting sales at Tim Hortons in the quarter ended June 30, which had dipped in May due to slower demand. Comparable sales in the company's international segments, which include restaurant chains such as Burger King and Popeyes, rose 4.2 per cent, compared with a 2.6 per cent rise a year ago. The company's total operating costs and expenses in the second quarter rose about 36 per cent, compared with a 16 per cent increase a year ago. (Reporting by Anuja Bharat Mistry in Bengaluru; Editing by Shinjini Ganguli)
Wall Street Journal
07-08-2025
- Business
- Wall Street Journal
Restaurant Brands Earnings Drop as Expenses Climb
Restaurant Brands reported a drop in second-quarter income despite higher sales as expenses climbed. Restaurant Brands, which houses Burger King and Tim Horton's brands, said second-quarter net income was $189 million, or 57 cents a share, compared with $280 million, or 88 cents a share, a year earlier.
