Owner of Burger King and Tim Hortons Beats on Profit
Complete comparable sales at Burger King were up 1.7% during the quarter ended September 30, for the most part because of more demand in Latin America and Asia Pacific.
The rise did not reach the 6.2% increase from the same period one year ago, due to less demand in Canada and the U.S., where the burger chain is experiencing strong competition from a number of food chains including McDonalds and Wendy’s.
Restaurants in the U.S. are battling tough competition from different new chains and those selling meal kits, in addition being hit hard by dropping prices of groceries, which has encouraged more to eat at home.
Tim Hortons, which has most of its locations in Canada, had total comparable sales increase by 2% during the just ended quarter, compared to a 5.3% growth during the same three-month period one year ago.
Total expenses and costs for the parent company of Burger King, fell by 3% to just over $655.1 million.
Net profit that was attributable to company shareholders increased, ending the quarter at $86.2 million equal to 36 cents a share, compared to last year during the third quarter of $49.5 billion equal to 24 cents a share, said company officials.
On a basis of using adjustments, Restaurant Brands’ per share earnings were 43 cents, beating expectations on Wall Street of 40 cents.
Company revenue at the Oakville, Ontario based business increased by 5.5% to end the quarter at $1.08 billion, which missed expectations on Wall Street of just over $1.06 billion.
Burger King rival McDonald’s posted third quarter earnings last week. Sales at the burger chain were up by 1.3% at its established locations in the U.S., which matched expectations on Wall Street.
Worldwide, McDonald’s sales were up 3.5% at its established locations, which far exceeded the growth of 1.3% expected by analysts.
McDonald’s posted adjusted earnings as well as revenue that were better than had been expected. Net income for the quarter was $1.28 billion equal to $1.50 a share, while adjusted earnings reached $1.62 a share passing Wall Street expectations of $1.48 a share.