Restaurant Brands’ revenue misses estimates, hurt by Burger King’s underperformance

Restaurant Brands International on Friday reported weaker-than-expected quarterly revenue, hurt by Burger King’s disappointing same-store sales growth.

Shares of the company fell less than 1% in premarket trading.

Here’s what the company reported compared with what Wall Street was expecting, based on a survey of analysts by LSEG, formerly known as Refinitiv:

• Earnings per share: 90 cents adjusted vs. 86 cents expected
• Revenue: $1.84 billion vs. $1.87 billion expected

Restaurant Brands reported third-quarter net income attributable to shareholders of $252 million, or 79 cents per share, down from $360 million, or $1.17 per share, a year earlier.

Excluding items, the restaurant company earned 90 cents per share.

Net sales rose 6.4% to $1.84 billion. Restaurant Brands reported same-store sales growth of 7% for the quarter.

Burger King’s same-store sales grew 7.2%, falling short of StreetAccount estimates of 8.6%. The burger chain’s international same-store sales increased 7.6%, while the metric rose 6.6% in the U.S.

Tim Hortons’ same-store sales growth of 6.8% met Wall Street’s expectations. In Canada, the coffee chain’s same-store sales climbed 8.1% in the quarter.

Popeyes was Restaurant Brands’ only chain to outperform expectations for same-store sales growth. The fried chicken chain reported the metric grew 7%, including a 5.6% increase in the U.S. That beat StreetAccount estimates of 5% growth.