Restaurant Brands International reported higher third-quarter earnings, supported by strong momentum from Tim Hortons and its international business.
Total revenue rose to $2.45 billion from $2.29 billion a year earlier, while adjusted operating income increased to $702 million from $652 million. System-wide sales rose 6.9 per cent year on year to $12.3 billion, driven by a 4 per cent rise in comparable sales and a 2.8 per cent increase in net restaurant growth.
CEO Josh Kobza said the company’s performance reflected solid execution across its portfolio.
“Our teams delivered a strong quarter, driven by momentum from Tim Hortons and our international business, which together generate roughly 70 per cent of our earnings,” he said.
By brand, system-wide sales rose 5.1 per cent for Burger King, 3.2 per cent for Tim Hortons, 5.3 per cent for Popeyes and 6.9 per cent for Firehouse Subs.
Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) rose to $794 million from $748 million a year earlier. Income from operations climbed to $663 million, up from $577 million.
“Burger King also had a great quarter, outperforming most of the industry through consistent and disciplined execution of our plan,” Kobza continued.
RBI also recently expanded its footprint with the acquisitions of Carrols Restaurant Group and Popeyes China last year, later forming a new Restaurant Holdings segment that includes these businesses along with Firehouse Subs Brazil.
The company said it intends to maintain its core franchisor structure for long-term growth and plans to refranchise most of the Carrols Burger King outlets and seek new partners for its Popeyes China and Firehouse Subs Brazil operations.
“Across our businesses, our franchisees are more aligned than ever, and that partnership, combined with disciplined execution, has us firmly on track to deliver at least 8 per cent organic adjusted operating income growth this year,” added Kobza.
RBI said it remains focused on driving growth across its brands through franchise alignment, operational discipline and international expansion.
