Restaurant Brands (QSR) Q1 Earnings & Revenues Top Estimates
Zacks Investment Research | Apr 24, 2018 10:09PM ET
Restaurant Brands International, Inc.’s (NYSE:QSR) first-quarter 2018 earnings and revenues surpassed the Zacks Consensus Estimate.
The company’s top line in the quarter was favored by continued positive sales momentum at Burger King while the bottom line benefitted from strong growth in revenues and favorable tax rate.
Changes in Accounting Standards
The company announced that it has implemented two new accounting standards that impacted first-quarter results.
From the beginning of 2018, Restaurant Brands adopted a new revenue recognition accounting standard, under which the company is complying the initial and renewal franchise fees and recognizing revenues over the term of the related franchise agreement instead of franchise fee, at the time of executing all material obligations and services.
Additionally, Restaurant Brands also adopted a new guidance related to hedge accounting. Under this guidance, the company will not include amounts pertaining to cross-currency rate swaps in net interest expenses. In this way, management expects to spot a benefit in net interest expense.
Earnings & Revenue Discussion
Per the new accounting standard, adjusted earnings of 66 cents in the first quarter surpassed the Zacks Consensus Estimate of 56 cents by 17.9%. Earnings under the previous accounting standard came in at 67 cents, which also grew 86.1% year over year.
Total revenues of $1,253.8 million surpassed the consensus estimate of $1,126 million by 11.3%. However, revenues under the previous accounting standard totaled $1,071.8 million, lower than the consensus mark but exceeded the prior-year quarter’s revenues of $1,000.6 million by 7.1%.
Restaurant Brands International Inc. Price, Consensus and EPS Surprise
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