Restaurant Brands International, Burger King's Parent Company, Reports Q1 Sales and Profit Below Expectations
Restaurant Brands International, the parent company of Burger King, Tim Hortons, and Popeyes, announced first-quarter results that fell short of analyst forecasts.
On Thursday, Restaurant Brands International (RBI), the parent company of popular fast-food chains Burger King, Tim Hortons, and Popeyes, revealed its first-quarter financial results, which largely missed market expectations.
The company reported adjusted earnings per share of $0.75, with total revenue reaching $2.11 billion. These figures were slightly below analysts’ predictions, which anticipated earnings per share of $0.78 and revenues of $2.15 billion, according to Visible Alpha’s survey.
RBI experienced a system-wide sales increase of 2.8% year-over-year, while comparable sales grew by a marginal 0.1%. Market analysts had forecasted 1.82% and 1.18% growth respectively. RBI noted that excluding the 110-basis-point effect of Leap Day from last year’s first quarter, comparable sales growth would have exceeded 1%.
RBI Maintains Optimistic Long-Term Growth Projections
Despite the slower start, RBI reaffirmed its long-term outlook, aiming for at least 3% comparable sales growth and a minimum of 8% organic adjusted operating income growth annually through 2028.
CEO Josh Kobza emphasized that the company is "making solid progress in executing the core fundamentals of our business, even with a slower beginning to the year."
Following the announcement, shares of Restaurant Brands International rose by 2% shortly after the market opened on Thursday, contributing to a 4% increase in the stock’s value year-to-date.
UPDATE—This article has been refreshed with the latest stock price information.
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