Restaurant Brands Beats Earnings as Burger King's US Sales Soar 8.5%, Popeyes Struggles Overall
Restaurant Brands International reported second-quarter earnings Thursday that topped Wall Street's expectations, driven by a striking turnaround at Burger King in the United States, even as the company's other chains, particularly Popeyes, continued to struggle with soft demand.
The parent company of Burger King, Tim Hortons, Popeyes and Firehouse Subs posted adjusted earnings of $1.07 per share, ahead of the $1.03 analysts had expected, according to a survey by LSEG. Net revenue rose 4.5% to $2.52 billion, in line with expectations. Net income attributable to shareholders came in at $507 million, or $1.45 per share, up sharply from $189 million, or 57 cents per share, in the same quarter a year earlier.
Burger King's US Turnaround Takes Hold
The standout performer in Restaurant Brands' results was Burger King's U.S. business, where same-store sales climbed 8.5% during the quarter, extending a turnaround that has taken hold in the chain's home market over recent quarters. Restaurant Brands Chief Executive Josh Kobza credited the improvement to disciplined execution, saying in a statement, "Burger King's performance is a great example of what's possible when you invest in the fundamentals and execute well – an approach we're applying across all of our brands."
Restaurant renovations, sharper marketing, and a renewed focus on core menu items including the Whopper have helped Burger King steal market share from competitors in recent quarters. Burger King U.S. President Tom Curtis told CNBC that the chain has benefited from consistent deal offerings, such as its $5 duos and $7 trios, a contrast to rivals that have frequently reshuffled their value menus. By comparison, McDonald's reported U.S. same-store sales growth of just 0.8% in its own second quarter, a result executives at that company described........
