DodoFinance Breaking News Made For You!
Jose Sil, CEO of Restaurant Brands International, speaks during an interview with CNBC on the floor of the New York Stock Exchange on November 6, 2019.
Brendan McDermott | Reuters
Restaurant Brands International reported on Tuesday that its quarterly revenue fell by 8% as Burger King and Tim Hortons sales struggled to recover from the corona virus infection.
However, Bobbies again recorded double-digit single-store sales growth, thanks to the enduring popularity of its chicken sandwich.
Shares of the company, Released preliminary one-store sales results earlier this month, Were unchanged in the booking trade.
Based on a study by Refinitive Analysts, the company reported a comparison of what Wall Street expected:
- Earnings per share: 68 cents, adjusted, against 63 cents expected
- Revenue: 34 1.34 billion vs 34 1.34 billion expected
The restaurant company reported a net income of $ 145 million, or 47 cents a share, for the third quarter of the fiscal year, up from $ 201 million a year ago or 75 cents a share. Temporary restaurant closures and other costs related to the epidemic will weigh in on profits.
Excluding corporate restructuring fees and other items, restaurant brands earned 68 cents a share, topping 63 cents a share expected by analysts who have studied refinitive.
Net sales 8% down 34 to 1.34 billion, matching expectations. Burger King single-store sales are down 7%, while Tim Hortons sales are down 12.5%. The Canadian coffee chain typically accounts for more than half of the revenue of restaurant brands. The epidemic not only disrupted the normal routines of coffee drinkers, but also hampered efforts to revive Tim’s sales.
Poppies, the only chain to report positive single-store sales growth, saw restaurant sales grow 17.4% in the quarter, at least for 17 months. Even with its recent success, the fried chicken chain accounts for only one-tenth of the net sales of restaurant brands.
Restaurant brands said it expects to see continued impact from the outbreak in its fourth quarter results.
Despite the decline in sales, the company is still investing in its restaurants. Starting with 10,000 Burger King and Tim Hortons locations, Restaurant Brands has announced plans to upgrade thousands of drive-through lanes across its three brands. Changes include non-contact payment methods and digital menu boards that change display options based on weather, previous orders and other factors.
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