Restaurant Brands International’s revenue comes in 25% lower due to COVID-19 restrictions
- Restaurant Brands International’s revenue comes in 25% lower due to COVID-19 restrictions.
- The fast food company posts £800 million in revenue and 25.06 pence of adjusted EPS.
- The Toronto-headquartered company refrains from giving future guidance due to COVID-19.
Restaurant Brands International (TSE: QSR) published its quarterly financial results on Thursday that highlighted its revenue to have tanked 25% in the second quarter. The company blamed COVID-19 for the decline that closed its stores temporarily in recent months. RBI deferred rend and offered cash advances to franchisees in late March.
Shares of the company jumped about 2% in premarket trading on Thursday. Founded in 2014, Restaurant Brands International is currently trading at £43.81 per share. In comparison, it had started the year 2020 at £47.98 per share. At the peak of the Coronavirus pandemic, the stock had dropped to as low as £23.23 per share in March.
RBI’s Popeyes reports a 24.8% growth in same-store sales
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RBI said its Tim Hortons and Burger King chains saw a 29.3% and a 13.4% plunge in same-store sales respectively, but Popeyes recorded a 24.8% growth in Q2. Tim Hortons traditionally contributes about 60% of the company’s total quarterly revenue.
According to Refinitiv, experts had forecast the company to print £800 million in revenue in the quarter that concluded on 30th June. In terms of earnings per share (EPS), they had estimated 23.54 pence. In its report on Thursday, RBI matched the estimate for revenue and posted a higher 25.06 pence of adjusted earnings per share in the second quarter.
At £123.77 million, Tim Hortons’ parent organisation said that its net income was significantly lower than £195.15 million in the same quarter last year. Its digital sales, however, more than doubled in Q2 on an annualised basis noting a massive 120% increase.
In its report on Thursday, the multinational fast food holding company also highlighted that roughly 93% of its global locations have now been reopened for the public.
RBI refrains from giving future guidance due to COVID-19
The Toronto-based company refrained from giving its future guidance due to the Coronavirus uncertainty. RBI, however, warned that its financial performance in the third quarter was likely to remain under pressure due to the health crisis.
In a bid to shore up finances amidst COVID-19, Restaurant Brands drew down its £760 billion revolving credit line in mid-March. As of the end of the fiscal second quarter, it boasted, the facility has been fully paid.
RBI also commented that the Toronto Stock Exchange had been notified about its plans of reinstating its buyback programme.
At the time of writing, Restaurant Brands International is valued at £20.38 billion and has a price to earnings ratio of 24.85.