Restaurant Brands International reported quarterly results on Friday that exceeded Wall Avenue’s expectations as system-wide gross sales surpassed 2019 ranges. The company’s shares were roughly unchanged when they were bought and sold prior to entering the market. The company reported first quarter web earnings of $ 270 million, or 58 cents per share, compared to $ 224 million, or 48 cents per share, twelve months ago.
Without gadgets, the restaurant manufacturers earned 55 cents per share and thus exceeded the analysts surveyed by Refinitiv expected 50 cents per share. Net sales rose 2.9% to $ 1.26 billion, beating expectations of $ 1.25 billion. The company said the increase in sales was mainly due to favorable foreign currency movements. Organic sales, which exclude the impact of foreign currency, decreased due to lower system-wide sales at Tim Hortons.
Tim Hortons saw sales in the same store decline 2.3% compared to a decrease of 10.3% in the same period last year. The Canadian coffee chain’s sales in the same store in its home market declined 3.3% in the quarter.
The coffee chain is also facing challenges as Covid-19 outbreaks have restricted mobility in Canada. Ontario, home to nearly half of Tim Hortons’ Canadian footprint, will be home until at least May 20. The province has just opened the first doses of the vaccine to people who are 40 years or older, but the second doses won’t be distributed until late summer or early fall.
“Americans are experiencing a very different way out of Covid than Canadians,” Jose Cil, CEO of Restaurant Brands, told analysts. Burger King sales in the same store rose 0.7% for the quarter. A year earlier, sales in the same store fell 3.7% as pandemic lockdowns were introduced around the world. Globally, the burger chain saw an increase in temporary store closings this quarter. Revenue in the same store in the US was a ray of hope with a 6.6% increase.
And after a quarter of the staggering sales growth in the same store that resulted from the famous chicken sandwich, Popeyes came to earth after facing hard comparisons with sales growth in the same store of 26.2% year over year. In the quarter, sales in the same store increased 1.5%. Sales in the same store in the US increased 0.9%.
Yum Brands’ KFC and McDonald’s recently launched their own chicken sandwiches, which means consumers have new products that they might want to try. Both companies reported strong demand in their recent earnings calls. Burger King also has plans for its own chicken sandwich, which will be launched later this year.