Restaurant Brands International’s revenue slides 8% in the fiscal third quarter
- Restaurant Brands International’s revenue slides 8% in the fiscal third quarter.
- The fast food company's net income tanks to £111.04 million in Q3.
- The Toronto-based firm notes a 7% decline in its comparable-store sales.
Restaurant Brands International (TSE: QSR) said on Tuesday that its revenue in the fiscal third quarter came in 8% lower as Tim Hortons and Burger King sales remained under pressure even after the ease in COVID-19 restrictions. Popeyes same-store sales, on the other hand, again jumped more than 10% in the recent quarter.
Shares of the company slid more than 1% in premarket trading. Restaurant Brands International lost another 3% in the later hours on Tuesday. On a year to date basis, the stock is now close to 15% down but has recovered about 75% since March. Learn more about the financial analysis of a company.
Restaurant Brands’ Q3 financial results versus analysts’ estimates
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According to Refinitiv, analysts had anticipated £1.03 billion of revenue for the Canadian company in Q3. For earnings per share, their estimate was capped at 48.24 pence per share. Restaurant Brands matched the forecast for revenue on Tuesday but posted a higher 52.07 pence of earnings per share in the third quarter.
At £111.04 million, the multinational firm’s net income plunged in Q3 from £153.92 million in the same quarter last year. Its net sales were also 8% lower on an annualised basis in the recent quarter. In the prior quarter (Q2), Restaurant Brand had registered a 25% decline in revenue due to the ongoing global health crisis.
The fast-food holding company also noted a 7% decline in its comparable-store sales in the third quarter. Tim Hortons reported a 12.5% decline in same-store sales in Q3 while comparable sales at Popeyes locations that have been open for a minimum of 17 months came in 17.4% higher. Sales from the drive-thru at its Burger King locations were 28% higher in the third quarter.
As per CEO Jose Cil, Restaurant Brands is doubling down on its drive-thru business, expanding by 10 thousand locations.
Restaurant Brands forecasts dovish performance in fiscal Q4
The Toronto-headquartered company also said on Tuesday that its financial performance was likely to remain under pressure in the fiscal fourth quarter due to the COVID-19 crisis that has so far infected more than 44 million people worldwide and caused over 1.1 million deaths.
Restaurant Brands International performed fairly upbeat in the stock market last year with an annual gain of about 20%. At the time of writing, it is valued at £19.14 billion and has a price to earnings ratio of 25.13.