Restaurant Brands Reports Q3 Results

Overview
Shares in Restaurant Brands (NYSE:QSR) slipped in premarket US trading on Tuesday after the Burger King parent unveiled third-quarter financial results that missed analysts' expectations.

Financial Highlights
In the three months ended on Sept. 30, the owner of popular Canadian coffee chain Tim Hortons reported a 24.7% increase in total revenue compared to the year-ago period, totaling $2.29 billion. However, this figure fell short of Bloomberg consensus estimates of $2.32 billion.

Growth Factors
Revenue growth was boosted by the firm's recent acquisitions of its biggest Burger King franchisee in the US and its Popeyes operations in China, according to Restaurant Brands.

Comparable Sales
Comparable sales at Tim Hortons, a key demand driver, came in at 2.3%, amid efforts to refresh its menu options to entice customers. Conversely, Burger King, which introduced a $5 value meal earlier this year to attract inflation-hit diners, saw a 0.7% dip in comparable sales. Across the group, comparable sales expanded by 0.3%, falling short of expectations of 1.89%.

Earnings Report
Adjusted earnings before interest, tax, depreciation, and amortization rose by 7.2% to $748 million, versus forecasts of $753.9 million.

CEO Commentary
Despite the results, CEO Josh Kobza stated that they demonstrate the company's "resilience." He expressed confidence in achieving 8% or more in adjusted operating income growth in 2024 and beyond, emphasizing a focus on providing value for guests, improving franchisee profitability, and investing in long-term brand growth.