The ailing shares of Restaurant Brands International Inc (NYSE: QSR) got a much-needed uplift after the company reported quarterly results beating market expectations.
In its quarterly results released on Monday, Restaurant Brands International (RBI) reported a stellar growth of 34.4% on same-store sales by Popeyes (almost twice of analyst expectations!). Driving the surge was its hugely popular fried chicken sandwich.
As CEO Jose Cil put it, the chicken sandwich has proven to be a game-changer for the brand in every way.
However, Tim Hortons, also owned by Restaurant Brands and its biggest business by revenue, reported a decline of 4.3% in comparable sales.
Restaurant Brands International Inc. (RBI) is a Canadian multinational fast food holding company formed in 2014 by the $12.5 billion mergers between American fast food restaurant chain Burger King and Canadian coffee shop and restaurant chain Tim Hortons. It further expanded its reach with the purchase of American fast-food chain Popeyes Louisiana Kitchen in 2017.
The company has been trying quite a few experiments to boost its business. The efforts so far haven’t yet met expectations. Its plant-based breakfast sandwiches with Beyond Meat sausages in Canada last year failed to gain traction.
Burger King restaurants also attempted to sell a plant-based meat burger called the Impossible Whopper which didn’t materialize either!
In the quarterly results, RBI reported a Net income attributable to shareholders of $165 million in the fourth quarter of 2019 up from $163 million a year earlier.
Earnings per share came in at 75 cents per share ahead of market expectations of 73 cents.
Total revenue rose 6.8% to $1.48 billion again ahead of market expectations of $1.46 billion.
Concerns over the impact of the coronavirus on China sales exist. It needs to be seen how the chicken craze continues to hold while RBI tried to prop up sales at Burger King and Tim Hortons.
Shares of Restaurant Brands International Inc have seen a good recovery after the earnings release gaining 7.0% over the past week.