The Burger King emblem is displayed at a Burger King quick meals restaurant on January 17, 2024 in Burbank, California.
Mario Tama | Getty Photographs
Restaurant Manufacturers Worldwide on Wednesday reported same-store gross sales progress of two.5%, fueled by the better-than-expected efficiency from Burger King’s and Popeyes’ eating places.
Shares of the corporate rose roughly 1% in premarket buying and selling.
Here is what the corporate reported in contrast with what Wall Road was anticipating, primarily based on a survey of analysts by LSEG:
- Earnings per share: 81 cents adjusted vs. 79 cents anticipated
- Income: $2.3 billion vs. $2.27 billion anticipated
The restaurant firm reported fourth-quarter internet earnings of $361 million, or 79 cents per share, down from $726 million, or $1.60 per share, a yr earlier.
Excluding company restructuring charges and different gadgets, Restaurant Manufacturers earned 81 cents per share.
Internet gross sales climbed 26% to $2.3 billion, fueled largely by its acquisitions of its largest U.S. Burger King franchisee and Popeyes China, each which occurred final yr.
Nonetheless, the corporate noticed better-than-expected gross sales throughout all of its segments in the course of the quarter.
“Should you look in comparison with all of our large, conventional [quick-service restaurant] friends, that 2.5% comp throughout the board was a fairly good outperformance for the quarter,” Restaurant Manufacturers CEO Josh Kobza informed CNBC.
Within the fourth quarter, McDonald’s U.S. same-store gross sales fell 1.4%, harm by an E. Coli outbreak linked to its Quarter Pounder burgers. And Popeyes’ rival KFC, which is owned by Yum Manufacturers, reported same-store gross sales declines of 5% for its U.S. eating places.
Burger King, in the meantime, reported U.S. same-store gross sales progress of 1.5%, beating StreetAccount estimates of 0.8%.
Burger King U.S. President Tom Curtis credited its Addams Household menu, timed for Halloween, and its Million Greenback Whopper promotion, which offered a million Whopper burgers for simply $1. Whereas the burger chain has been in turnaround mode for greater than two years, its quarterly outcomes have proven indicators that the technique has gained again prospects.
Popeyes’ U.S. same-store gross sales ticked up 0.1%, reversing final quarter’s declines.
“I feel we received some actually compelling worth choices into the market in [the fourth quarter], and that helped our efficiency, each on gross sales and site visitors,” Kobza mentioned.
Tim Hortons reported home same-store gross sales progress of two.5%. The Canadian espresso chain accounts for greater than 40% of Restaurant Manufacturers’ quarterly income.
Restaurant Manufacturers’ worldwide eating places noticed same-store gross sales progress of 4.7%, beating StreetAccount estimates of two.7%. The corporate credited its Burger King and Popeyes places for fueling larger gross sales.
The corporate additionally elevated its footprint by 3.4%, including 1,055 new eating places from the identical interval a yr in the past.
Seeking to 2025, Restaurant Manufacturers plans to spend between $400 million and $450 million on consolidated capital expenditures, tenant inducements and different incentives.
