Popeyes chicken sandwich drives sales surge, Restaurant Brands' quarterly beat
At Popeyes, same-store sales surged 34.4%
(Reuters) - Restaurant Brands International Inc's quarterly results beat market expectations on Monday, helped by the popularity of its fried chicken sandwiches at Popeyes, even as its breakfast chain Tim Hortons continued to struggle.
At Popeyes, same-store sales surged 34.4 percent, helped by the relaunch of a hugely popular fried chicken sandwich in November, which had earlier caused outright shortages at restaurants.
Analysts were expecting a growth of 12.34 percent at the chain, according to IBES data from Refinitiv.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| QSR | RESTAURANT BRANDS INTERNATIONAL INC. | 71.76 | +0.84 | +1.18% |
Comparable sales at Tim Hortons, Restaurant Brands' biggest business by revenue, declined 4.3 percent in the reported quarter, falling below the estimate of a 2.44 percent drop.
POPEYES COOKS UP APPAREL LINE IN CHICKEN SANDWICH WARS
The chain, popular in Canada even before Burger King bought it to create Restaurant Brands in 2014, launched a plant-based breakfast sandwich with Beyond Meat sausages in Canada last year to woo more customers, but was forced to discontinue the product within months.
Sales at established Burger King restaurants, where the plant-based meat burger Impossible Whoppers are served, also fell below expectations.
Net income attributable to Restaurant Brands shareholders rose to $165 million in the fourth quarter ended Dec.31, from $163 million a year earlier.
On an adjusted basis, the company earned 75 cents per share, beating estimates of 73 cents.
Total revenue rose 6.8 percent to $1.48 billion, beating estimates of $1.46 billion.
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(Reporting by Nivedita Balu in Bengaluru; Editing by Shounak Dasgupta)
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