Shares of Burger King's parent fall according to earnings errors
Travelers order food in automated self-catering kiosk at fast food Burger King restaurant chain.
Bundrul Chukrut | LightRocket | Getty Images
Restaurant Brands International on Monday reported quarterly revenues that were not in line with analysts' expectations as Tim Horton's fight continues.
Stocks in the company fell almost 4% in premarket trading.
"We are generally confident of the long-term growth prospects of each of our three iconic brands, and remain focused on providing a good guest experience while driving franchisees' profitability," said CEO Jose Cil in statement.
Here's what the company reported compared to what Wall Street expected, based on a survey by Refinitiv analysts:
- Earnings per share: 55 cents, adjusted, against 58 cents expected
- Revenue: $ 1[ads1].27 billion against $ 1.26 billion expected [19659009] Burger King's parent company reported a net income of NOK 246 million in the first quarter, or 53 cents per share, from $ 278.6 million, or 59 cents per share, the year before, attributing the downturn to higher tax expenses.
Outside the cost of buying Popeyes Louisiana Kitchen, moving the support centers and other unique expenses, Restaurant Brands earned 55 cents per share and missed 58 cents per share forfeit analysts examined by Refinitiv.
Net sales increased by 1% to $ 1.27 billion and hit expectations of $ 1.26 billion. Restaurant Brands said exchange rate changes that led to the change in turnover.
Burger King and Popeyes reported sales increase in the same store that hit estimates, but Tim Hortons came up short. Burger King, the company's largest chain, increased by the same store increase by 2.2%, Wall Street expectations peaked at 1.8%. Popeyes reported revenue growth of 0.6% and hit estimates by 0.1%.
Sales on Tim Horton's open at least one year fell 0.6%, but analysts expected a revenue growth of 2%. With the growth of the Canadian coffee chain slowly in the domestic market, Restaurant Brands is trying to push into the fast-growing Chinese market with its first three stores there. Tim Hortons accounts for almost 60% of the company's total sales.
