Restaurant Brands International‘s net income declined despite higher revenue in the third quarter.
The group, which owns Tim Hortons, Burger King, Popeyes, and Firehouse Subs, saw net income fall 1.9 per cent year over year to $357 million.
The company attributes the decline to lower income from operations and higher income tax expense and interest expense.
Meanwhile, revenue surged 24.7 per cent to $2.29 billion due to incorporating the Restaurant Holdings results, which include the performance of Carrols Burger King and PLK China restaurants.
Tim Hortons’ revenue decreased 0.8 per cent to $1.04 billion due to unfavorable foreign exchange impact. Burger King jumped 10.1 per cent to $362 million primarily driven by the net impact of the non-Carrols acquired Burger King restaurants.
PLK, master franchisee of Popeyes in China, rose 9.7 per cent to $195 million on the back of the acquisition of 60 company restaurants as part of the Carrols acquisition and improvements in PLK’s underlying company restaurant portfolio.
Firehouse Subs increased 4.1 per cent to $53 million while Restaurant Holdings stood at $441 million.
The international segment’s revenue expanded 6.4 per cent to $243 million, thanks to increases in Burger King royalties as a result of an increase in system-wide sales.
Overall, the group’s comparable sales were 0.3 per cent while net restaurants rose 3.8 per cent. System-wide sales climbed 3.2 per cent.
