Burger King Parent Restaurant Brands’ Stock Falls After Q3 Earnings Miss: Retail Takes Note

Shares of Burger King parent Restaurant Brands International Inc ($QSR) fell nearly 4% in Tuesday’s pre-market session after the company’s third-quarter results missed Wall Street estimates.

Revenue jumped 25% year-over-year (YoY) to $2.29 billion but fell short of a Wall Street estimate of $2.35 billion. Adjusted earnings per share (EPS) came in at $0.93, lower than an estimate of $0.95. Net income fell 2% YoY to $357 million.

Coffeehouse Tim Hortons reported same store sales growth of 2.3% during the quarter compared to 7.6% in the same period a year ago. However, Burger King witnessed a decline of 0.7% compared to a growth of 6.6% last year.

Tim Hortons’ revenue declined to $1.04 billion compared to $1.05 billion in the same quarter a year ago. The decrease in total revenues was primarily due to an unfavorable FX impact, the company said.

Meanwhile, Burger King revenue increased to $362 million compared to $329 million a year ago. The increase in revenues was primarily driven by the net impact of the non-Carrols acquired Burger King restaurants, partially offset by a decrease in system-wide sales, it said.

CEO Josh Kobza said the company remains focused on providing great value for guests, improving franchisee profitability, and investing in its brands for the long-term.

“We have been pleased to see an improvement in consolidated comparable sales in October and remain confident we will achieve our 8% plus Adjusted Operating Income growth target for 2024 and beyond,” he said.

The company continued to maintain its long-term guidance of 3%+ comparable sales, 5%+ net restaurant growth and 8%+ system-wide sales growth from 2024 to 2028.  

Retail investors on Stocktwits noted the earnings miss.

On a year-to-date basis, the stock has lost over 8%, significantly underperforming the benchmark U.S. indices.

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