Tim Hortons’ parent company Restaurant Brands beats profit expectations in fourth quarter – Business
Restaurant Brands International Inc. reported a better-than-expected profit for its fourth quarter as revenue was boosted by the addition of Popeyes and system-wide sales growth.
The parent company of Tim Hortons, Burger King and Popeyes, which keeps its books in U.S. dollars, says it earned $395.0 million attributable to common shareholders or $1.59 per diluted share in the last three months of 2017.
That compared with a profit of $118.4 million or 50 cents per share in the same quarter in 2016.
On an adjusted basis, Restaurant Brands says it earned $313.5 million or 66 cents per share, up from an adjusted profit of $208.3 million or 44 cents per share a year earlier.
Analysts on average had expected a profit of 57 cents per share, according to Thomson Reuters.
Revenue for the quarter totalled $1.23 billion, up from $1.11 billion.
Comparable sales at Tim Hortons increased 0.1 per cent in the quarter compared with a 0.2 per cent increase in the same quarter in 2016.
Burger King comparable sales climbed 4.6 per cent compared with 2.8 per cent a year ago, while Popeyes comparable sales shrank 1.3 per cent compared with growth of 2.8 per cent a year earlier.
For the full year, Restaurant Brands reported a profit of $626.1 million or $2.54 per diluted share on nearly $4.58 billion in revenue. That compared with a profit of $345.6 million or $1.45 per diluted share on $4.15 billion in revenue in 2016.
“After acquiring Popeyes earlier in 2017, we made good progress integrating the business, and we remain highly encouraged by the brand’s growth potential,” Restaurant Brands chief executive Daniel Schwartz said in a statement.
“We also improved system-wide sales growth at Burger King this year, driven by accelerated net restaurant growth and continued comparable sales momentum. At Tim Hortons, we launched our mobile app and our espresso based beverage platform in Canada and the U.S. and also opened our first restaurants in Asia, Europe and Latin America.”