Restaurant Brands kicked off the fiscal year with solid sales growth, primarily driven by strong performance at its Burger King and international operations.
The company’s system-wide sales grew 6.2 per cent year-on-year to $11.5 billion during the quarter ended March 31. The international segment led the growth with a 11 per cent increase, followed by Firehouse Subs (7.2 per cent ) and Burger King (5.5 per cent).
Tim Hortons sales grew 2.4 per cent, while Popeyes Louisiana Kitchen slid 3.9 per cent.
On a comparable basis, sales grew 3.2 per cent, powered by a 5.8 per cent growth at Burger King and 5.7 per cent at international business. Tim Hortons was up 1.6 per cent, Firehouse Subs was down 0.5 per cent, and Popeyes down 6.5 per cent.
The Restaurant Holdings division, comprising Carrols Restaurant Group, Popeyes China and Firehouse Subs Brazil, lifted comparable sales by 4.3 per cent.
On the bottom line, operating income soared nearly 40 per cent to $606 million, and net income nearly doubled to $445 million.
“We delivered a strong start to the year, converting solid topline results into double-digit earnings growth,” said CEO Josh Kobza.
“Tim Hortons and International each delivered their 20th consecutive quarter of positive comparable sales.
“And at Burger King, our results reflect several years of hard work by our franchisees and teams to elevate the guest experience, driving stronger engagement and clear outperformance,” he added.
The company continues to expect average annual comparable sales growth of 3 per cent through 2028.
Last year, Restaurant Brands’ system-wide sales improved 5.3 per cent, with comparable sales up 2.4 per cent.