Restaurant Brands International (QSR) has reported first-quarter financial results that missed Wall Street’s expectations due to a same-store sales decline at Tim Hortons.
The Toronto-based company, which also owns restaurant chains Burger King, Popeyes, and Firehouse Subs, announced earnings per share (EPS) of $0.75 U.S., which missed the consensus estimate among analysts of $0.78 U.S.
Revenue in the period totaled $2.11 billion U.S., which missed the $2.13 billion U.S. that was forecast on Wall Street.
Overall sales were up 21% from a year earlier due to higher revenue generated at Popeyes and Firehouse Subs.
Restaurant Brands posted overall same-store sales growth of only 0.1% as its three largest brands saw same-store sales decline during the quarter.
Tim Hortons, a leading chain in Canada that accounts for more than 40% of Restaurant Brands’ quarterly revenue, reported that its same-store sales fell 0.1%, missing analyst estimates that called for growth of 1.40%.
Burger King’s same-store sales shrank 1.3%, steeper than estimates of a 0.9% decline.
Popeyes saw its same-store sales slide 4%, the biggest drop of the quarter.
While demand was weak in the key markets of Canada and the U.S., Restaurant Brands fared better abroad, with its international segment posting same-store sales growth of 2.6%.
In terms of 2025 guidance, Restaurant Brands reiterated its previous outlook that calls for $400 million U.S. to $450 million U.S. in capital expenditures and 3% same-store sales growth.
The stock of Restaurant Brands International is flat on the year (down 0.56%) and trading at $93.87 per share in Toronto.
