To bolster sluggish same-store sales at Tim Hortons, Restaurant Brands International said Wednesday that it plans to introduce a new kids menu, improve the loyalty program and focus on aggressive growth in China.
The company is also betting big on all-day breakfast, which launched last week at all stores in Canada. The initiatives announced Wednesday come as Tim Hortons reported a 2.2 percent increase in systemwide sales and flat same-store sales for the second quarter ended June 30.
In a conference call with investors, executives at RBI, based in Oakville, Ontario, said sales at Tim Hortons were dragged down by soft sales in the U.S.
Though comps improved compared to the previous quarter, RBI CEO Daniel Schwartz said the company still has “more work to do” at Tim Hortons.
RBI has been working with Tim Hortons franchisees to develop a new kids menu and loyalty program, he said. Roughly 650 restaurants are also slated for remodels in 2018 and 2019.
Last week, the company rolled out “breakfast anytime” at all stores in Canada because this “is something our guests are asking us to provide,” Schwartz said.
He did not say if all-day breakfast would be launched in the U.S.
At Burger King, sales slowed compared to the previous quarter, while Popeyes experienced a surge.
Systemwide sales increased 8.4 percent at Burger King and increased 10.7 percent at Popeyes.
Burger King posted a 1.8 percent increase in comparable restaurant sales for the quarter, down from 3.9 percent for the same period last year.
Popeyes, which the company purchased in early 2017, was the bright spot among the three brands. The fried chicken chain’s 2.9 percent same-store sales growth was driven by 1.8 percent increase in U.S. comparable store sales.
The U.S. business was bolstered by improved price points, consumer support of limited-time offers and delivery. Schwartz said Popeyes will expand delivery this year to keep the momentum of off-premise sales.
RBI reported net income of $169.1 million, up from $89.5 million for the same period a year ago.
Store counts at the end of the quarter for all three brands were: 4,794 at Tim Hortons, 17,022 at Burger King, and 2,975 at Popeyes.
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