A Burger King restaurant is seen on October 25, 2024 in New York.
Michael M. Santiago | Getty images
Restaurant Brands International Thursday, the results and quarterly income that missed analysts’ expectations missed the sales of Popeyes, Burger King and Tim Hortons.
But the catering company already sees sales.
“As we enter (the second trimester), this momentum has improved significantly, so we see better absolute results while we enter the second quarter that give us confidence in the way we are going to sail in the rest of the year,” said CEO Josh Kobza at CNBC.
The actions of the company were almost stable in trading prior to the market.
Here is what restaurant brands have declared in relation to what Wall Street expected, on the basis of a survey of LSEG analysts:
- Profit per share: 75 cents adjusted vs 78 cents expected
- Income: $ 2.11 billion against $ 2.13 billion expected
Restaurant brands have declared net net income in the first quarter attributable to shareholders of $ 159 million, or 49 cents per share, against $ 230 million, or 72 cents per share, a year earlier.
By excluding the transaction costs linked to its acquisition of Burger King China and other articles, the company won 75 cents per share.
Net sales increased by 21% to 2.11 billion dollars, fueled by an increase in income from Popeyes and Firehouse Sub.
Restaurant brands have posted overall growth in comparable stores of 0.1%. According to Kobza, with the exception of last year’s jumping day, its sales with comparable stores have increased by around 1%.
However, the three largest brands in the company experienced a drop in sales at comparable stores during the quarter and have missed Wall Street expectations. Other fast food companies have reported a difficult start to the year because the weather and a more prudent consumer weighed on demand for their burgers and nuggets.
Tim Hortons, which represents more than 40%of the total quarterly restaurant income from restaurant brands, said that its sales with comparable stores have dropped by 0.1%, lacking streetaccount estimates for sales growth with comparable stores of 1.4%. A year earlier, the Canadian coffee channel reported sales growth at 6.9%comparable stores.
Tim Hortons “acquired a lot of speed” in the second quarter, said Kobza. On Monday, the channel launched a new breakfast in collaboration with the actor – and the Canadian – Ryan Reynolds.
Burger King comparable stores decreased 1.3%more steep than estimates for a 0.9%drop. The American activity of the chain, which has been in recovery mode for more than two years, has experienced sales at 1.1%stores.
Popeyes saw its sales with comparable stores slide 4%, the greatest drop in the quarter. Wall Street provided for drops in sales at 1.8% comparable stores for the fried chicken chain. Last year, Popeyes broadcast its very first Super Bowl advertisement, helping to bring its quarterly sales growth to stores comparable to 5.7%; The channel has not returned to advertising in the big game this year.
The demand was stronger outside the United States and Canada. The International Restaurant Brands Segment experienced sales growth at 2.6%comparable stores.
The company reiterated its forecasts for 2025, providing for it to spend between $ 400 and $ 450 million for consolidated capital expenses, incentives to tenants and other incentives. Restaurant brands have also said it was still planning to reach its long -term algorithm, which provides for sales growth of 3% and 8% of operational income growth adjusted on average between 2024 and 2028.
