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BusinessRestaurant Brands International (QSR) Q3 2021 earnings

Restaurant Brands International (QSR) Q3 2021 earnings

A Burger King restaurant seen in Milton, Pennsylvania.

Paul Weaver | SOPA Images | LightRocket | Getty Images

Restaurant Brands International on Monday reported quarterly earnings that topped Wall Street’s expectations, however its income fell quick as labor challenges weighed on gross sales.

Shares of the corporate fell 3% in morning buying and selling.

Here’s what the corporate reported in contrast with what Wall Street was anticipating, based mostly on a survey of analysts by Refinitiv:

  • Earnings per share: 76 cents adjusted vs. 74 cents anticipated
  • Revenue: $1.5 billion vs. $1.52 billion anticipated

The Burger King mother or father reported fiscal third-quarter internet earnings attributable to widespread shareholders of $221 million, or 70 cents per share, up from $145 million, or 47 cents per share, a yr earlier.

Excluding objects, Restaurant Brands earned 76 cents per share, beating the 74 cents per share anticipated by analysts surveyed by Refinitiv.

Net gross sales rose 11.8% to $1.5 billion, falling in need of expectations of $1.52 billion.

Restaurant Brands mentioned Covid-19 contributed to labor challenges that led eating places in some areas to shorten hours or scale back service modes. CEO Jose Cil mentioned about 40% of Popeyes places have closed eating rooms quickly, shifting to only takeout and supply, to cope with staffing points.

Tim Hortons reported same-store gross sales progress of 8.9%, beneath StreetAccount estimates of 10.3%. Even earlier than the pandemic, the chain was struggling to draw prospects, pushing the corporate to speculate extra in its espresso and restaurant gear. Canada’s slower restoration from Covid-19 has weighed on Tims’ same-store gross sales progress this yr.

However, Tims is displaying indicators of enchancment. Executives mentioned all of its product classes, excluding sizzling espresso, are again to pre-pandemic ranges or larger. The chain’s loyalty program additionally presents a possibility, with greater than 10% of Canadians as energetic customers.

Burger King’s same-store gross sales climbed 7.9% after dropping 7% a yr in the past. The burger chain missed StreetAccount’s estimates of 8.6%. U.S. same-store gross sales shrank by 1.6%. Sales within the firm’s dwelling market have been trailing these of different burger chains, together with rival McDonald’s, which is anticipated to report its outcomes later this week. Burger King is attempting to transition away from paper coupons and worth meals to focus on high-margin prospects.

Popeyes Louisiana Kitchen noticed its same-store gross sales fall by 2.4% within the quarter. StreetAccount’s estimates predicted the metric would rise by that quantity. The fried hen chain was dealing with robust comparisons with its efficiency a yr in the past, when same-store gross sales climbed 17.4%. Other fast-food chains have rolled out their very own variations of Popeyes’ well-known hen sandwich, placing stress on demand.

Read the full earnings release here.

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