Burger King parent’s stock rises on earnings beat
A Popeyes restaurant is seen on in Washington D.C.
Eric Baradat | AFP | Getty Images
The return of Popeyes’ chicken sandwich helped parent company Restaurant Brands International top analysts’ expectations for its quarterly earnings and revenue.
Shares of the company rose more than 1% in premarket trading on Monday.
Here’s what the company reported compared with what Wall Street was expecting, based on a survey of analysts by Refinitiv:
- Earnings per share: 75 cents, adjusted, vs. 73 cents expected
- Revenue: $1.48 billion vs. $1.46 billion expected
Burger King’s parent company reported fiscal fourth-quarter net income of $257 million, or 54 cents per share, down from $301 million, or 64 cents per share, a year earlier.
Excluding items, Restaurant Brands earned 75 cents per share, beating the 73 cents per share expected by analysts surveyed by Refinitiv.
Net sales rose 6.8% to $1.48 billion, topping expectations of $1.46 billion.
Popeyes Louisiana Kitchen’s chicken sandwich returned to restaurants in early November, helping the fried chicken chain’s same-store sales grow by 34% during the quarter.
Burger King’s same-store sales grew by 2.8%. Its U.S. same-store sales growth was slower this quarter, rising only 0.6%. In the third quarter, buoyed by the national release of the Impossible Whopper, Burger King saw its same-store sales jump 5% in the U.S.
Tim Hortons, the laggard of Restaurant Brands’ portfolio, saw its same-store sales decline by 4.3% in the quarter. The Canadian coffee chain has struggled as sales growth in its domestic market slow down. Tims’ Canadian same-store sales fell by 4.6% during the fourth quarter.