Restaurant Brands International (QSR) has reported quarterly earnings that beat analysts’ expectations, fueled largely by double-digit sales growth at Tim Hortons.
The company, which also owns quick service restaurants Burger King, Popeyes and Firehouse Subs, reported earnings per share (EPS) of $0.75 U.S. versus $0.64 U.S. that was forecast.
Revenue in this year’s first quarter came in at $1.59 billion U.S. compared to $1.56 billion U.S. that was expected by analysts who cover the Toronto-based company.
Restaurant Brands International’s same-store sales grew 10.3%, fueled by double-digit growth at Tim Hortons and also Burger King.
Tim Hortons’ same-store sales climbed 13.8%, while Burger King’s same-store sales rose 12.3% during the quarter ended on March 31.
Burger King is selling a record number of Whoppers due to a new advertising campaign and a Whopper-themed jingle that has gone viral on social media site TikTok.
Tim Hortons’ multi-year turnaround strategy is starting to take hold in Canada, said Restaurant Brands International.
Tim Hortons has revamped its menu and loyalty program and upgraded its coffee-brewing equipment since the pandemic started in 2020. Its mobile app is now the number two e-commerce app used in Canada behind Amazon (AMZN).
Popeyes Louisiana Kitchen reported same-store sales growth of 5.6% in Q1, fueled largely by the return of its popular Ghost Pepper Wings.
Firehouse Subs saw its same-store sales rise 6.1% in Q1 of this year.
Restaurant Brands International’s stock has gained 39% in the last 12 months to trade at $98.27 per share.
