Restaurant Brands reports mixed results as Burger King's U.S. turnaround shows signs of success

Summary

• Restaurant Brands International reported mixed quarterly results where Popeyes' struggles offset Burger King's successful U.S. turnaround.
• Company shares fell about 2% in morning trading.
• Adjusted earnings per share were $1.10 compared to $1.09 expected.
• Revenue was $2.53 billion compared to $2.54 billion expected.
• Third-quarter net income attributable to common shareholders was $542 million, or $1.54 per share, up from $315 million, or 96 cents per share, a year earlier.
• Net revenue rose 3.1% to $2.53 billion.
• Same-store sales growth across all restaurants was 3.8%, marking the fifth consecutive quarter of growth above 3%.
• CEO Josh Kobza stated the environment has been relatively stable with no significant changes in consumer behavior despite high gas prices.
• Burger King U.S. same-store sales grew 8.4% as part of a multiyear turnaround focused on food & restaurant improvements.
• Chair Patrick Doyle noted Burger King has delivered over four years of industry outperformance with three consecutive quarters of exceptional results.
• Burger King relaunched nuggets on Sept. 1 with 100% white meat chicken, resulting in sales increases of more than 35%.
• Tim Hortons Canada same-store sales grew 1.8% after launching matcha drinks in July to attract afternoon customers.
• Popeyes U.S. same-store sales fell 2.2% as rivals lured customers with discounts.
• The company now believes Popeyes will return to same-store sales growth later than the previously forecasted second half of 2026.
• Popeyes' $6 Big Box promotion in September boosted sales less than expected, & scaling back wings to refocus on core menu items hurt short-term sales.
• International business same-store sales grew 3.9%, fueled by Burger King locations.