Restaurant Brands International’s Top Estimates Fueled by Stronger Tim Hortons and Burger King Sales


Tim Horton’s signage is displayed in the window of a restaurant in downtown Vancouver, British Columbia, Canada.

Ben Nelms | Bloomberg | Getty Images

Restaurant Brands International on Thursday reported quarterly earnings and sales that beat Wall Street expectations, fueled by international sales growth at Burger King and the recovery of Tim Hortons’ Canadian branches.

In the US, the company said sales in the same stores at Burger King and Popeyes were flat.

The company’s shares rose 5% in morning trading.

Here’s what the company reported compared to what Wall Street expected, based on a survey of analysts by Refinitiv:

  • Earnings per Share: Adjusted 82 Cents vs. 73 Cents Expected
  • Revenue: $1.64 Billion vs $1.57 Billion Expected

Net sales for the quarter rose 14% to $1.64 billion. Global same-store sales in the company’s portfolio were up 9%, boosted by the performance of Tim Hortons and Burger King.

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Like many of its competitors, Restaurant Brands said it increased menu prices during the quarter to offset rising food and freight costs.

“We’ve made sure that any price hikes we take are taking into account the consumer and making sure we’re not too far ahead,” CEO Jose Cil said during the company’s quarterly conference call.

Tim Hortons same-store revenue growth of 12.2% exceeded StreetAccount’s estimates of 8%. In Canada, the same-store coffee chain’s sales increased by 14.2%.

Tims, which accounts for about 60% of Restaurant Brands’ revenue, has taken longer to recover from the pandemic, largely due to tighter restrictions in its home market. Executives praised new cold brew and food menu items, upgrades to the core menu and a partnership with Justin Bieber for the chain’s improved performance.

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However, hot coffee sales have not recovered from pre-pandemic levels. North American coffee drinkers are increasingly opting for iced coffee or cold brew over hot drinks. For example, Starbucks said three-quarters of its US sales during its fiscal third quarter came from cold drinks.

Global same-store sales of Burger King rose 10% in the quarter, beating Wall Street’s expectations of 3.4%. That was driven by same-store sales growth of 18.4% outside the US

But same-store sales in Burger King’s home market were flat as the company works to improve order accuracy and operational efficiency to improve the chain’s performance. Executive said they plan to share more details about the turnaround strategy for Burger King’s US restaurants in early September.

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Popeyes Louisiana Kitchen reported same-store sales growth of 1.4%, beating estimates of 0.3%. Like Burger King, Popeyes reported flat sales at the same store in the US.

Firehouse Subs, the latest addition to Restaurant Brands’ portfolio, saw its same-store sales decline 1.4% in the quarter.

For the quarter, Restaurant Brands reported net income attributable to shareholders of $236 million, or 76 cents per share, down from $259 million, or 84 cents per share, from a year earlier.

Excluding costs related to the Firehouse Subs acquisition and other items, the company earned 82 cents per share.

Read the full earnings report here.



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