OAKVILLE, ONT. — Restaurant Brands International, Inc., the parent company of Burger King, Tim Hortons and Popeyes Louisiana Kitchen, saw sluggish sales at each of its chains in a competitive quick-service restaurant environment in the recent quarter.
Net income attributable to common shareholders in the third quarter ended Sept. 30 was $136.5 million, equal to 54c per share on the common stock, up sharply from $91.4 million, or 39c, in the year-ago period. Revenues totaled $1,182 million, down from $1,208.6 million.
The company adopted a new revenue recognition accounting standard on Jan. 1. The results reflect the previous accounting standards for comparability purposes.
During the quarter, Restaurant Brands International achieved comparable sales growth of 0.6% at Tim Hortons, 1% at Burger King and 0.5% at Popeyes over the prior year.
"At Tim Hortons, systemwide sales grew by 3%, driven by net restaurant growth of 3% and slightly positive comparable sales," said Daniel S. Schwartz, chief executive officer, during an Oct. 24 earnings call. "This quarter's results reflect a continuation of sequential improvement in Canada comparable sales to nearly 1%, partially offset by softer sales in U.S.
"At Burger King, we achieved systemwide sales growth of nearly 8%, reflecting net restaurant growth of 6% and comparable sales of 1%. Our global comparable sales this quarter reflect softer results in the U.S. of negative 0.7%.
"At Popeyes, we grew our systemwide sales by roughly 8%, driven by net restaurant growth of nearly 8% and slightly positive comparable sales. Our comparable sales reflect softer results in the U.S. and a continuation of strong sales momentum in our international markets."
The company plans to roll out a children's menu at Tim Hortons restaurants in the coming months. A new restaurant design is rolling out at Burger King locations, featuring double drive-thru lanes and outdoor digital menu boards, Mr. Schwartz said.
"Double drive-thrus allow for significantly improved throughput and speed of service," he said. "Outdoor digital menu boards drive increased check, allow for integration with other technologies like mobile apps and provide franchisees cost savings on printed media and menu signage. This image is also focused on building a digitally integrated experience for our guests, including the implementation of outdoor digital menu boards and in restaurant self-order kiosks."