Restaurant Brands beats expectations as Q2 profit more than doubles to US$390 million

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TORONTO — The parent company behind Tim Hortons, Burger King and Popeyes saw its second-quarter profits more than double on a 37 per cent boost in revenues.

Restaurant Brands International Inc., which reports in U.S. dollars, says its net income attributable to shareholders was US$390 million or 84 cents per share in the second quarter, up from US$163 million or 35 cents per share a year earlier.

Adjusted profits reached US$358 million or 77 cents per share, up from US$154 million or 33 cents per share in the second quarter of 2020.

Revenues were US$1.44 billion, up from US$1.05 billion in the prior year quarter, with Tim Hortons same-store sales increasing 7.6 per cent a year after decreasing 29.3 per cent. Total system-wide sales were US$8.9 billion, up from US$6.8 billion.

Analysts expected adjusted profits of 61 cents per share on $1.36 billion of revenues, according to financial data firm Refinitiv.

The company says global system-wide sales growth was four per cent higher than in 2019, before COVID-19 caused restaurant closures, while 378 net new locations were added in the first half of the year.

“We are encouraged by the momentum across our business – including sales increases driven by quality menu items, rapid adoption of our digital channels by our guests and an acceleration in new restaurant openings around the world by our franchisees who believe strongly in our brands and business model,” stated CEO José Cil.

Digital sales increased nearly 60 per cent from a year ago and 15 per cent from the first quarter.

Companies in this story: (TSX:QSR)

 

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