Restaurant Brands International reported a surge in revenue.
Restaurant Brands International reported a surge in revenue thanks to increased demand for Burger King and Tim Hortons. The company's sales increased to $1.78 billion in the second quarter of 2023 against a forecast of $1.75 billion.
Restaurant Brands net income reached $351 million, compared with $346 million a year earlier. Comparable-restaurant sales increased 9.6% year-over-year on strong visitation growth. In the U.S., visitation at Popeyes, Burger King and Firehouse Subs remained at last year's levels, while in contrast, Canada and international markets recorded strong growth.
Tim Hortons, which accounts for more than half of Restaurant Brands' revenue, reported same-store sales growth of 11.4%, although analysts had expected growth in the range of 6.5%.
"We showed growth in all of our core categories, as well as significant growth in some targeted areas where we are trying to grow the business, such as P.M. food and cold beverages," the company commented in a press release.
Sales at Burger King rose 10.2%, beating forecasts by 5.3%. In the United States, where the company is trying to revitalize its brand, sales added 8.3% year-on-year.
It is noted that Restaurant Brands invested $ 11 million in the reporting quarter to modernize Burger King restaurants and spent about 10 million advertising the restaurant chain. The company is investing about $400 million in its brand revitalization program.
Sales growth at Popeyes stores was 6.3%, beating expectations of 3.5%. Firehouse Subs, which recently joined the Restaurant Brands portfolio, posted sales growth of 2.1%.