Restaurant Brands International delivered stronger-than-expected quarterly earnings and revenue as Burger King’s international business gained momentum and helped offset weaker performance in parts of its portfolio.
The fast food group, which also owns Tim Hortons and Popeyes, reported solid global sales growth even as overall profit declined from a year earlier.
International expansion, especially in Asia and other overseas markets, played a central role in lifting revenue.
The company is doubling down on its international strategy, including a new China partnership, while working to stabilise weaker brands and refine long-term growth plans.
International Burger King growth drives revenue beat
Restaurant Brands reported adjusted earnings per share of 96 cents for the quarter ended Dec. 31, exceeding analyst expectations of 95 cents.
Revenue rose to $2.47 billion, surpassing forecasts of $2.41 billion.
Net income attributable to shareholders fell to $113 million, or 34 cents per share, compared with $259 million, or 79 cents per share, in the same quarter last year.
After removing restructuring costs, transaction expenses, and other adjustments, underlying earnings reflected operational strength.
Net sales increased 7.4%, while organic revenue grew 6.5% after excluding currency fluctuations and planned refranchising.
Same-store sales rose 3.1%, with overseas markets delivering the strongest gains.
Outside the US and Canada, same-store sales climbed 6.1%. Burger King’s international restaurants, which form most of this segment, recorded same-store sales growth of 5.8%.
This exceeded analyst expectations of 3.7%, highlighting stronger overseas demand.
China joint venture strengthens global expansion strategy
Restaurant Brands is accelerating Burger King’s international expansion through partnerships.
In November, the company announced plans to create a joint venture for Burger King China to support faster growth.
The deal closed in late January, with Chinese alternative asset manager CPE acquiring about 83% ownership of Burger King China.
Restaurant Brands retained a minority stake of roughly 17% and secured a seat on the board.
The joint venture allows Restaurant Brands to expand its presence while sharing operational responsibilities and investment costs.
China remains a key market for global restaurant chains due to its scale and growth potential.
Burger King’s international momentum reflects broader efforts by Restaurant Brands to prioritise expansion outside North America, where growth opportunities are more limited.
Tim Hortons stable while Popeyes faces pressure
Tim Hortons reported same-store sales growth of 2.9% during the quarter, below analyst expectations of 3.8%.
Despite slower growth, the Canadian coffee chain remained the company’s largest revenue contributor, accounting for 46% of total revenue.
Burger King’s overall same-store sales increased 2.7%, exceeding analyst estimates of 2.4%.
The brand continued to benefit from improvements across its global operations.
Popeyes reported the weakest performance among the company’s brands.
Same-store sales declined 4.8%, compared with expectations of a 2.4% drop.
Restaurant Brands has taken steps to address the slowdown. In November, the company appointed Burger King veteran Peter Perdue to lead Popeyes’ US and Canadian operations.
Last month, it also named Matt Rubin as the chain’s chief marketing officer.
Restaurant Brands plans to share additional strategies to expand its business and strengthen brand performance at its investor day in Miami on Feb. 26.
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