OAKVILLE, ONT. — First-quarter net income for Restaurant Brands International Inc., the owner of the Burger King, Tim Hortons and Popeyes Louisiana Kitchen chains, was flat as the company lapped difficult comps from the same period of fiscal 2016. Looking ahead, management expressed optimism about the company’s outlook as the newly acquired Popeyes Louisiana Kitchen business provides a material effect to earnings in the future.
Net income during the first quarter, ended March 31, was $52.2 million, equal to 21c per share on the common stock, and a slight increase compared to the first quarter of fiscal 2016 when the company earned $50 million, equal to 22c per share.
Sales for the quarter were $1,000.6 million, an increase compared to the previous year when sales totaled $918.5 million.
|Daniel S. Schwartz, c.e.o. of Restaurant Brands|
“Our growth on the bottom line was largely attributable to further system-wide sales growth at both Tim’s and Burger King, primarily resulting from net restaurant growth over the past trailing 12 months,” said Daniel S. Schwartz, chief executive officer, during an April 26 conference call with securities analysts. “Same-store sales growth for each of our three brands was relatively flat this quarter and includes an approximate 1 percentage point drag on comps due to the impact of the Leap Day in the prior year period.”
Restaurant Brands International closed the acquisition of Popeyes Louisiana Kitchen on March 27. The four days of ownership has an immaterial effect on Restaurant Brands’ first-quarter results.“We remain confident in our plans to accelerate the growth of this iconic brand all around the world, and our conviction continues to grow as we learn even more about the business from its strong employee and franchisee base,” Mr. Schwartz said. “During the first quarter of 2017, Popeyes increased restaurant count by approximately 6% on a trailing 12-month basis, and had relatively flat comparable sales growth of negative 0.2% driven by U.S. same-store sales of negative 0.4%.”