Restaurant Brands International (QSR) First Quarter 2022 Results
In this photo illustration a Burger King Whopper burger is displayed on April 05, 2022 in San Anselmo, California. A federal lawsuit has been filed seeking class-action status alleging fast-food chain Burger King misleads customers with images that portray its food, including the Whopper burger, as much larger than what it is. which is actually served to customers.
Justin Sullivan | Getty Images
Restaurant Brands International on Tuesday reported quarterly earnings and revenue that beat analysts’ expectations, fueled by strong same-store sales growth at Burger King’s restaurants overseas.
The burger chain’s international same-store sales climbed 20.1% in the first quarter, but in its home market they were flat as the chain begins a turnaround to rejuvenate demand. Worldwide, Burger King saw same-store sales climb 10.3% in the quarter.
Burger King is the only Restaurant Brands chain to have restaurants in Russia, through a joint venture in which it has a 15% stake. The company has previously said it is considering divesting itself of its stake in the joint venture and said on Tuesday that the decision to suspend all company support for these sites had a “measurable, but not significant” impact on its results this quarter.
Burger King’s Russian restaurants accounted for just 0.6% of the company’s total revenue last year. These locations caused its adjusted earnings before interest, taxes, depreciation and amortization to decline by about $12 million in the first quarter. Rival McDonald’s, on the other hand, reported $127 million in charges related to its Russian business for the first quarter.
Here’s what Restaurant Brands reported for the quarter, compared to what Wall Street expected based on a Refinitiv analyst survey:
- Earnings per share: 64 cents adjusted vs. 63 cents expected
- Revenue: $1.45 billion vs $1.41 billion expected
Restaurant Brands reported net income of $270 million, or 59 cents per share, in the first quarter, compared with $271 million, or 58 cents per share, a year earlier.
Excluding items, the company earned 64 cents per share, beating the 63 cents per share expected by analysts polled by Refinitiv.
Net sales increased 15.2% to $1.45 billion during the period, beating expectations of $1.41 billion.
This was the first full quarter where Restaurant Brands’ acquisition of Firehouse Subs was included in its revenue. The sandwich chain reported same-store sales growth of 4.2% in the quarter. In the United States, its same-store sales increased by 4.5%.
The company’s Tim Hortons chain reported same-store sales growth of 8.4% for the quarter, which includes double-digit gains in Canada. The coffee chain has taken longer than other Restaurant Brands restaurants to recover from the Covid pandemic due to restrictions in its home market. A year ago, its same-store sales were down 2.3%.
Popeyes Louisiana Kitchen was once again the only chain in the Restaurant Brands portfolio to report lower same-store sales. Worldwide, same-store sales fell 3%. However, the fried chicken chain also saw restaurant net growth of 7.9%. Only locations that have been open for at least 13 months are included in its same-store sales statistics.
CEO Jose Cil said in a statement that digital sales in the domestic market reached their highest levels ever during the first quarter. The company does not disclose how much of its system-wide sales come from digital channels, although its digital sales reached $10 billion in 2021.
Read the full earnings report here.