Burger King's Owner Beats Estimates
Restaurant Brands International, owner of the Burger King and Tim Hortons chains, posted third-quarter profit that topped analysts’ estimates after new menu items like Fiery Chicken Fries helped attract customers.
Restaurant Brands has drawn customers to Burger King with specials and promotions, capitalising on a slowdown at McDonald’s. The burger chain added a spicier version of its popular chicken fries to the menu in August, helping boost same- store sales 6.2 per cent last quarter. Analysts estimated 3.2 per cent, according to Consensus Metrix. The company also cited its Extra Long Jalapeno Cheeseburger for fueling sales, helping offset pressure from the strong dollar.
"We’re bringing more people to the restaurants, and they’re spending more money," Josh Kobza, the company’s chief financial officer, said in an interview. "On that measure, our business is performing very well right now."
At Tim Hortons, a coffee-and-doughnut chain concentrated in Canada, breakfast and lunch wraps helped results, the company said. That division’s same-store sales rose 5.3 percent in the quarter, beating the 3.3 percent projection of analysts.
Companywide revenue amounted to $1.02 billion in the quarter, missing the $1.05 billion analysts had estimated. Currency headwinds have hurt results in recent months, reducing revenue by 6.9 percent at Burger King last quarter.
News by Bloomberg, edited by Hospitality Ireland