Restaurant Manufacturers Worldwide (QSR) earnings Q3 2024

Restaurant Manufacturers Worldwide on Tuesday reported quarterly earnings and income that missed analysts’ expectations as home same-store gross sales progress for all 4 of its chains fell wanting Wall Road estimates.

Here is what the firm reported for the third quarter in contrast with what Wall Road was anticipating, based mostly on a survey of analysts by LSEG:

• Earnings per share: 93 cents adjusted vs. 95 cents anticipated
• Income: $2.29 billion vs. $2.31 billion anticipated

The corporate’s worldwide same-store gross sales grew simply 0.3% within the quarter. Burger King, Firehouse Subs and Popeyes all reported same-store gross sales declines of their house markets.

However to this point within the fourth quarter, same-store gross sales traits have improved.

“October now could be, for the entire enterprise, optimistic, low-single digits of same-store gross sales, which is an enchancment from what we noticed in [the third quarter],” CEO Josh Kobza instructed CNBC.

He credited extra profitable advertising and marketing promotions and higher shopper sentiment within the U.S. for the advance in gross sales.

“In the event you have a look at a number of the issues that actually drive funds for our visitors, every thing from fuel costs are down, rates of interest are beginning to go down, inflation has actually began to average a good bit,” Kobza stated.

Burger King’s same-store gross sales fell 0.7% in the course of the three-month interval that ended Sept. 30. Analysts had anticipated the metric to be flat, in accordance with StreetAccount estimates. The chain is in the midst of a turnaround within the U.S., however shoppers are additionally spending much less at eating places, reigniting the worth wars between Burger King and its rivals.

Popeyes reported same-store gross sales declines of 4%, effectively off the anticipated 0.2% acquire, in accordance with StreetAccount estimates. The chain has tried to step up its worth choices just lately, first with promotion of three-piece bone-in hen for $5 after which with the reintroduction of its Massive Field deal at $6. In June, Popeyes launched boneless wings as a everlasting menu merchandise for the primary time in its historical past.

Firehouse Subs noticed its same-store gross sales shrink 4.8% within the quarter, in contrast with an anticipated decline of 0.4%, in accordance with StreetAccount. The sandwich chain is the newest addition to Restaurant Manufacturers’ portfolio, as of 2021, and the smallest model by footprint with simply 1,300 places as of the top of the third quarter.

Tim Hortons was the highest performer, with home same-store gross sales progress of two.3%. Tims has been rising site visitors and enhancing its pace of service, Kobza stated. However the Canadian espresso chain nonetheless fell wanting Wall Road’s same-store gross sales progress expectations of 4.1%.

Exterior of the U.S. and Canada, Restaurant Manufacturers’ worldwide same-store gross sales rose 1.8% within the quarter, simply shy of estimates of two.2%.

Restaurant Manufacturers reported third-quarter internet revenue attributable to frequent shareholders of $252 million, or 79 cents per share, unchanged from a yr earlier.

Excluding objects, the corporate earned 93 cents per share.

Internet gross sales climbed 24.7% to $2.29 billion, largely because of the corporate’s acquisitions of its largest U.S. Burger King franchisee and its Popeyes enterprise in China earlier this yr.

This story is growing. Please examine again for updates.