Restaurant Brands CEO explains why revenue missed estimates in Q3
- Restaurant Brands International reports mixed results for fiscal Q3.
- CEO Jose Cil discussed earnings on CNBC's "Squawk on the Street".
- Shares of the fast food company are down over 4.0% on Monday.
Restaurant Brands International Inc (NYSE: QSR) said its profit beat Wall Street estimates in the fiscal third quarter. Shares of the fast-food company, however, fell more than 4.0% this morning on lower-than-expected revenue.
Highlights from CEO Cil’s interview with CNBC’s ‘Squawk on the Street’
On CNBC’s “Squawk on the Street”, CEO Jose Cil blamed labour shortage, inflation, and the global pandemic for the hit to revenue.
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We are facing challenges. We saw an impact in hours of operation and service modes, mostly because of labour shortages. We also saw an impact on our distribution business in the northeast, which limited the availability of product to some of our stores.
According to the chief executive, RBI is working closely with suppliers and franchise partners to work through the challenges.
Key takeaways from RBI’s Q3 financial results
Restaurant Brands reported $221 million in net income that translates to 70 cents per share. In the comparable quarter of last year, its net income was capped at $145 million or 47 cents per share. Adjusted for one-time items, the Canadian-American multinational earned 76 cents per share, as per the earnings press release.
The NYSE-listed firm generated $1.495 billion in revenue that represents an annualised growth of 11.8%. According to FactSet, experts had forecast 74 cents of adjusted EPS on a higher $1.522 billion in revenue.
Comparable sales were up 7.9% at Burger King and 8.9% at Tim Hortons. Popeyes, however, reported a same-store sales decline of 2.4%. Other notable figures included cost of sales that jumped 17.2% in Q3 to $490 million.