Restaurant Brands International beats analysts’ estimates for earnings and revenue in the recent quarter
- Restaurant Brands International beats analysts’ estimates for earnings and revenue in Q4.
- RBI prints $1.48 billion in revenue and 75 cents of earnings per share.
- Burger King records 2.8% growth in same-store sales while Tim Horton declines 4.3%.
Restaurant Brands International (RBI) announced its quarterly performance results on Monday that revealed better than expected revenue and earnings for the company in the recent quarter. Much of the optimism, as per the Canadian multinational fast-food holding company, was attributed to the return of Popeyes’ famous chicken sandwich.
The fourth-quarter earnings report saw RBI’s stock trading 2% higher in the morning session on Monday. In 2020 so far, RBI has performed modestly upbeat in the stock market. The company opened at C$83.94 in January. Following the gains of Monday’s report, the stock has settled around C$87.39 that marks an around 4% growth in a little over a month. RBI closed the last year at around C$83 per share although share prices were seen as high as C$105 in August. At C$83 per share, the fast-food holding company boasted an around 15% annual gain in 2019.
RBI Prints $1.48 Billion In Revenue And 75 Cents Of Earnings Per Share
According to Refinitiv, analysts were expecting the Restaurant Brands International to print $1.46 billion in revenue in the fourth quarter while an EPS (earnings per share) of 73 cents was anticipated. Quarterly performance results on Monday, however, highlighted the company to have beaten both estimates with a higher $1.48 billion in revenue and 75 cents of earnings per share in the recent quarter.
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Burger King’s parent company revealed $257 million in net income in Q4. In the same quarter last year, net income was recorded at a higher $301 million. At $1.48 billion, net sales climbed 6.8% in the fourth quarter.
Popeyes Louisiana Kitchen’s much in demand chicken sandwich was again made available at the restaurants at the start of November that pushed its same-store sales up by 34% in the recent quarter. The original nationwide launch of the sandwich was in August. Thanks to the social media hype, however, it was sold out within a few weeks.
Burger King Records 2.8% Growth In Same-Store Sales
Burger King, on the other hand, registered a 2.8% growth in terms of same-store sales. In the U.S alone, same-store sales rose at a much slower pace of 0.6% in the fourth quarter. Analysts had forecast the U.S same-store sales to improve by 3% in the recent quarter. In the previous quarter, the U.S same-store sales at Burger King had posted a 5% gain ascribed to the nationwide launch of Impossible Whopper.
Tim Horton has been the laggard on RBI’s portfolio in the past quarters. In Q4, the company recorded a 4.3% decline in its same-store sales.