Tim Hortons and the Restaurant Brands International Inc. global division buoyed sales for the Burger King parent in the second quarter ended June 30, executives said Thursday.
“We certainly were planning for better absolute top-line results,” said Joshua Kobza, RBI CEO, on Thursday’s earnings call, adding that Tim Hortons and the international division performed well.
The Tim Hortons division is “just hitting on all cylinders,” said Patrick Doyle, RBI executive chairman.
The Toronto-based Restaurant Brands International closed on two acquisitions in the quarter, completing the purchase of its largest U.S. Burger King franchisee, Carrols., and acquiring its Popeyes Louisiana Kitchen China business.
“We closed strategic transactions that will strengthen our long-term positioning for the Burger King brand in the U.S. and for Tim Hortons and Popeyes in China,” said Sami Siddiqui, RBI chief financial officerl.
Burger King also brought back a $5 price point — the $5 Your Way Meal — to compete with similar offers from McDonald’s Corp. and The Wendy’s Co.
“There's even more we can do to enhance the value we offer,” Siddiqui said. “And I believe great operations, digital. and re-imaging are just as important to win in the long-term.
“We’re on track to complete nearly 400 remodels this year and bring our system to between 85% to 90% modern image by 2028,” Siddiqui said. “We now have 150 Royal Reset remodels open for at least six months, and they are driving uplifts in the mid-teens range, net of control.”
A number of the remodeled stores are in the new Sizzle prototype, he said.
For the second quarter ended June 30, RBI’s net income was $399 million, or 88 cents a share, compared to $351 million, or 77 cents a share, in the prior-year period. Revenues were $2.08 billion compared to $1.775 billion in the same quarter last year.
RBI had 1.9% consolidated same-store sales with increases of 4.6% at Tim Hortons, 2.6% international and 0.5% at Popeyes and declines of 0.1% at Burger King and 0.1% at Firehouse Subs.
As of June 28, RBI had 31,324 restaurants, including 7,133 Burger Kings, 4,507 Tim Hortons, 3,437 Popeyes Louisiana Kitchens, 1,288 Firehouse Subs and 14,959 units in the international division.
Contact Ron Ruggless at [email protected]
Follow him on X/Twitter: @RonRuggless
