By
Tolu Ajiboye
June 14th, 2023
The Burger King parent reported 76 cents per share adjusted, and a total of $1.5 billion, lower than the estimated $1.52 billion.
Restaurant Brands International (NYSE: QSR), the parent company to American multinational fast-food chain Burger King, reported quarterly earnings on Monday that surpassed expectations set by Wall Street. However, revenue for the parent company came up short due to labor challenges weighing on sales. According to José Cil, Chief Executive Officer of Restaurant Brands International Inc.:
“Our results this quarter reflect the value of having a diversified business model across three brands and in over 100 countries.”
Burger King Parent, Restaurant Brands’ Report by the Numbers
Earnings per share for Restaurant Brands International was 76 cents adjusted compared to 74 cents expected, according to analysts from Refinitiv. In addition, revenue reported by the holding company was $1.5 billion, versus the $1.52 billion estimate by Wall Street. Although this represents an increase in net sales of 11.8%, it still fell below expectations due to Covid-induced labor constraints. Restaurants and drive-throughs in some regions had to reduce their working hours or limit service modes. Furthermore, Restaurant Brands also said that they were facing staffing shortages, currently a general problem in the industry. As a result, a growing number of restaurant companies are being forced to shut down outlets temporarily. In addition, many of these companies have also had to discontinue digital ordering at certain locations.
Restaurant Brands International reported its fiscal third-quarter net income attributable to common shareholders as $221 million or 70 cents per share. This was significantly up from the $145 million, or 47 cents per share reported from a year earlier. Furthermore, minus items, the fast-food holding company’s 76 cents per share earnings beat out the 74 cents per share expected. Furthermore, shares of the Burger King parent rose less than 1% in premarket trading.
Burger King’s restaurant chain rose by 7.9%, after shedding 7% a year ago, missing StreetAccount’s estimates of 8.6%. Furthermore, Burger King outlets’ sales in the United States dipped by 1.6%. Also, it is worth noting that the company’s home market sales are trailing those of other burger chains, including notable competitor McDonald’s (NYSE: MCD). The company expects to post its own end-of-quarter results later this week.
Other Fast-Food Ventures Under Restaurant Brands
Tim Hortons, another company under Restaurant Brands, reported same-store sales growth of 8.9%, below StreetAccount estimates of 10.3%. Prior to the pandemic, the Canadian coffee and restaurant chain struggled to draw in customers. Consequently, this jolted the company to invest more in its capital expenditure – including coffee and restaurant equipment. A major reason for Tim Hortons’ weighted same-store sales growth is due to Canada’s relatively slower recovery from the pandemic.
Popeyes Louisiana Kitchen, yet another prominent restaurant chain under the Restaurant Brands umbrella, experienced a same-store slump sale of 2.4%. Conversely, StreetAccount earlier predicted that the fried chicken brand’s metric would rise by that same amount for the quarter-ended. Besides, a year ago, Popeye’s faced much tougher comparisons to its performance, when same-sales store climbed by 17.4%.
Several restaurants are beginning to consistently reduce their carbon footprints. This is because the food supply chain and restaurant customer experience generate a lot of waste. These include food waste, plastic waste, and more.
“Our big goal is to drive business growth without carbon growth. I’m so proud of the team’s work to set ambitious goals to reduce our carbon footprint in the world,” said Restaurant Brands CEO Cil.
