Canada’s Restaurant Brands International (QSR) has reported mixed quarterly financial results as consumer spending on discretionary items such as dining out remains weak.
The Toronto-based company that owns Tim Hortons, Burger King, Popeyes and Firehouse Subs, posted earnings per share (EPS) of $1.10 U.S, which narrowly beat the $1.09 U.S. expected on Wall Street.
However, revenue of $2.53 billion U.S. fell slightly short of the $2.54 billion U.S. consensus forecast among analysts. Sales were up 3.1% from a year earlier.
The company also reported same-store sales growth in the year’s third quarter of 3.8%.
Burger King was the top performer for Restaurant Brands, with U.S. same-store sales growth of 8.4%. The burger chain is in the midst of multiyear turnaround that is starting to take hold.
Firehouse Subs delivered 1.5% comparable sales growth and 7.8% sale-store sales growth for Restaurant Brands.
The Tim Hortons chain of coffee shops saw same-store sales growth of 1.8% in its home market of Canada.
However, Popeyes struggled in the quarter, with the fried chicken chain’s U.S. same-store sales declining 2.2% year-over-year.
Popeyes faces tiff competition from other chicken restaurants in the U.S., many of which offer discounts to attract customers.
Restaurant Brands said that its international business saw same-store sales growth of 3.9% in the quarter, fueled by growth at its Burger King locations.
The North American restaurant sector has struggled this year as consumers pullback on their discretionary spending amid persistent inflation and rising prices for items such as gasoline.
QSR stock has gained 13% over the last year to trade at $74.52 U.S. per share.
