Sales of Restaurant Brands International Inc. fell 25 percent in the three months to June as Popeyes’ growth countered the declining revenue of Burger King and Tim Hortons due to the COVID-19 pandemic.
The Toronto-based fast food company reported second-quarter profit of $ 164 million, or adjusted 33 cents a share on sales of $ 1.05 billion. Wall Street polls polled by Refinitiv expected adjusted revenue of 29 cents on sales of $ 1
|QSR||RESTAURANT BRANDS INTERNATIONAL INC.||57.74||-0.14||-0.24%|
“The COVID-19 pandemic has posed a number of unprecedented challenges, but our proactive and coordinated response around the world has helped us achieve a significant recovery in productivity since March,” CEO Jose Seal said in a statement. “By the end of the quarter, we had returned to 90% of our sales throughout the year, with 93% of our restaurants open worldwide. “
Sales of Tim Hortons’ entire system, which includes revenue for both franchisees and restaurant companies, fell 33 percent from a year ago to $ 1.1 billion. The decline in comparable sales – those in stores open for at least a year – averaged more than 40% in the last two weeks of March narrowed to about 15% by the end of July.
Sales across the Burger King system fell 25 percent year-over-year to $ 4.1 billion. Comparative sales were roughly equal at the end of July compared to last year, an improvement of more than 30% at the end of March.
Meanwhile, sales across the Popeyes Louisiana Kitchen system rose 24 percent to $ 1.25 billion in the second quarter, with profits reflected in restaurants open for at least a year.
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Shares of restaurant brands fell 9.46 percent this year to Wednesday, lagging behind the 3 percent profit of the S&P 500.