Restaurant Brands (QSR) Q1 Earnings Miss Estimates, Up Y/Y
Zacks Investment Research | Apr 29, 2019 11:47PM ET
Restaurant Brands International, Inc. (NYSE:QSR) reported mixed first-quarter 2019 results, wherein earnings missed the Zacks Consensus Estimate but revenues surpassed the same. Both the top and bottom line increased on a year-over-year basis.
Adjusted earnings of 55 cents per share lagged the Zacks Consensus Estimate of 59 cents but increased 16.7% from the year-ago quarter number. This uptick can be primarily attributed to a consistent improvement in the company’s top line.
Total revenues came in at $1,266 million, which outpaced the consensus mark of $1,260 million. The metric also improved 1% from the year-ago quarter figure, courtesy of increased system-wide sales across the company’s brands.
Segmental Revenues
Restaurant Brands operates through three segments — Tim Hortons, Burger King and Popeye’s Louisiana Kitchen.
Revenues at Tim Hortons totaled $749 million compared with $763 million in the prior-year quarter. However, system-wide sales increased 0.5% on the back of net restaurant growth. Meanwhile, comps at this segment declined 0.6% compared with 0.3% decrease in the prior-year quarter.
Burger King’s revenues increased from $390 million in first-quarter 2018 to $411 million in the quarter under review, mainly driven by increased franchise and property revenues. Also, system-wide sales rose 8.2%, narrower than 11.3% growth registered in the year-ago comparable period and a 8.4% increase in the last reported quarter. System-wide sales growth can be attributed to net restaurant growth of 5.7% and positive comps growth.
Comps grew 2.2% compared with 3.8% growth in the prior-year quarter and a 1.7% increase in the last reported quarter.
Popeye’s Louisiana Kitchen, which was acquired on Mar 27, 2017, reported revenues of $106 million compared with $101 million in the year-ago quarter.
System-wide sales rose 6.8% owing to net restaurant growth of 6.6% and comps growth of 0.6%. Notably, system-wide sales growth compared unfavorably with prior-year quarter’s 10.9% increase. Comparable sales too compared unfavorably with the year-ago quarter’s comps growth of 3.2%.
Restaurant Brands International Inc. Price, Consensus and EPS Surprise
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