Restaurant Manufacturers Worldwide (QSR) Q3 2020 earnings high estimates
Jose Cil, CEO of Restaurant Brands International, speaks on the New York Stock Exchange during an interview with CNBC on November 6, 2019.
Brendan McDermid | Reuters
Restaurant Brands International reported Tuesday that its quarterly sales were down 8% as Burger King and Tim Hortons sales struggled to recover from the coronavirus pandemic.
However, Popeyes saw double-digit sales growth in the same store again thanks to the continued popularity of its chicken sandwich.
The company’s shares, which released preliminary sales results for the same deal earlier this month, were unchanged in premarket trading.
The company reported, versus Wall Street’s expectations based on an analyst survey by Refinitiv:
- Earnings per share: 68 cents, adjusted compared to 63 cents expected
- Revenue: $ 1.34 billion versus $ 1.34 billion expected
The restaurant company reported net income of $ 145 million, or 47 cents per share, for the third quarter, compared to $ 201 million, or 75 cents per share, a year earlier. Temporary restaurant closings and other costs related to the pandemic weighed on profits.
Excluding corporate restructuring fees and other items, Restaurant Brands earned 68 cents per share, beating the analysts polled by Refinitiv, 63 cents per share.
Net sales fell 8% to $ 1.34 billion, which was in line with expectations. Burger King saw sales in the same store decrease 7%, while Tim Horton’s sales in the same store fell 12.5%. The Canadian coffee chain typically accounts for more than half of restaurant brands’ sales. Not only did the pandemic disrupt the normal routines of coffee drinkers, but it hampered efforts to revive Tims’ sales.
Popeyes, the only chain to see positive sales growth in the same store, posted 17.4% sales growth for the quarter in restaurants that have been open for at least 17 months. Despite its recent success, the fried chicken chain only accounts for a tenth of Restaurant Brands’ net sales.
Restaurant Brands anticipates the pandemic will continue to affect fourth quarter results.
Despite the decline in sales, the company continues to invest in its restaurants. Restaurant Brands announced plans to renew thousands of its thoroughfares for its three brands, starting with 10,000 Burger King and Tim Hortons locations. Contactless payment methods and digital menu boards that change display options based on weather, previous orders, and other factors are among the changes.
Read the full results report here.