Restaurant Brands' Firehouse Subs To Expand With 100 New Outlets In Mexico

Restaurant Brands International (QSR) is expanding its sandwich chain, Firehouse Subs, in Mexico, with plans to open 100 outlets over the next five years.

Firehouse Subs has partnered with Foodplay, a Mexican restaurant operator. Foodplay already operates Restaurant Brands' Tim Hortons and Yum Brands' KFC, among other franchises, in Mexico.

Firehouse Subs has over 1,300 restaurants in the U.S., Canada, Switzerland, Mexico, Albania, and the United Arab Emirates, and it plans to open its first restaurants in Brazil and Australia later this year, according to a company statement.

Restaurant Brands also owns Burger King and Popeyes chains, has a significant presence in international markets.

Last quarter, 39% of the company's sales were from Canada, where the company is headquartered, 51% from the U.S., and 10% from other markets.

The expansion comes in a challenging period for the restaurant sector. High inflation and President Donald Trump's aggressive trade policies have created economic uncertainty, prompting consumers to limit their spending on discretionary items.

Several chains, including McDonald's (MCD), Chipotle Mexican Grill (CMG), and Wendy's (WEN), have flagged that higher costs and weak demand are pressuring their business outlook.

Restaurant Brands missed profit expectations in the last quarter.

On Stocktwits, the retail sentiment has held in the 'bullish' territory for a month.

Company executives are scheduled to speak at a Bernstein conference on Thursday. The event will be live-streamed on the company's investor relations page at 8 a.m. ET.

Restaurant Brands shares are up 10.3% this year.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

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