Canada’s Restaurant Brands Announces Mixed Financial Results

Restaurant Brands International (QSR), the parent company of Tim Hortons, has reported mixed financial results for this year’s second quarter. The Toronto-based company, which reports in U.S. dollars, announced earnings per share (EPS) of $0.94 U.S., which was below the $0.97 U.S. that was expected among analysts.Revenue in the April through June period of $2.41 billion U.S. came in ahead of expectations for $2.32 billion U.S. Sales were up 16% from a year ago.Management said the mixed results were due to a same-store sales decline at its Popeyes restaurant chain, which was partially offset by strong international sales at Tim Hortons.The company’s overall same-store sales, which track restaurants open at least a year, rose 2.4% during the quarter. International restaurants reported same-store sales growth of 4.2%.Tim Hortons, which accounts for more than 40% of Restaurant Brands’ revenue, reported same-store sales growth of 3.4% during the quarter.Burger King reported same-store sales growth of 1.3%. Its U.S. division, which has been in a turnaround for nearly three years, saw same-store sales increase by 1.5%.Popeyes was the laggard of the company’s restaurant chains, posting a same-store sales decline of 1.4% in Q2.Looking ahead, Restaurant Brands reiterated its previous forecast that calls for 3% same-store sales growth and 8% operating income growth between 2024 and 2028.The company plans to spend between $400 million U.S. and $450 million U.S. in capital expenditures this year. QSR stock has gained 5% this year to trade at $68.60 U.S. per share in New York.