Restaurant Brands (QSR) Q3 Earnings Match Estimates, Up Y/Y
Zacks Investment Research | Oct 28, 2019 11:46PM ET
Restaurant Brands International, Inc. (NYSE:QSR) reported mixed third-quarter 2019 results, wherein earnings were in line with the Zacks Consensus Estimate but revenues lagged the same.
The company’s adjusted earnings came in at 72 cents per share, which grew 14.3% from the year-ago quarter. This uptick can be primarily attributed to consistent improvement in Restaurant Brands' top line.
Total revenues were $1,458 million, which lagged the consensus mark of $1,462 million. Its top line missed the consensus estimate after beating the same in the preceding three quarters. However, the metric improved 6% from the year-ago quarter figure, courtesy of increased system-wide sales across its brands.
Notably, Restaurant Brands looks forward to open its first super urban location. It continues making progress on its key investment project that includes remodeling pipelines and construction projects.
Segmental Revenues
Restaurant Brands operates through three segments — Tim Hortons, Burger King and Popeye’s Louisiana Kitchen.
Revenues at Tim Hortons totaled $881 million compared with $854 million in the prior-year quarter. However, system-wide sales declined 1.1% from the prior-year quarter. Comps at this segment decreased 1.4% compared with 0.6% decline in the prior-year quarter. Nonetheless, the brand remains confident of its Winning Together Plan and prospects of the business in Canada appear bright.
Burger King’s revenues grew from $416 million in third-quarter 2018 to $457 million in the quarter under review, mainly driven by increased franchise and property revenues. Also, system-wide sales rose 8.4% from the year-ago quarter. Notably, system-wide sales improvement was 10.7% compared with 7.8% in the prior-year quarter, owing to net restaurant growth of 5.8%. The brand achieved its highest comparable sales growth since 2015 during the quarter, wherein comps grew 4.8% from 1% rise in the prior-year period.
Popeye’s Louisiana Kitchen, which was acquired on Mar 27, 2017, reported revenues of $120 million compared with $105 million in the year-ago quarter. System-wide sales rose 15.4% from the prior-year period, owing to net restaurant growth of 5.6% and 9.7% rise in comps. Notably, system-wide sales growth compared favorably with the prior-year quarter’s 7.9% increase. Popeye’s also reported its strongest comparable sales growth of 9.7% after nearly two decades. This compares favorably with year-ago quarter’s increase of 0.5%.
Restaurant Brands International Inc. Price, Consensus and EPS Surprise
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