Burger King parent Restaurant Brands tops revenue estimates on strong demand

By Thomson Reuters Apr 30, 2024 | 5:44 AM

(Reuters) – Restaurant Brands International beat Wall Street expectations for quarterly revenue on Tuesday, driven by strong demand at its Tim Horton and Burger King chains.

Quick service restaurants have turned focus towards offering better promotions and deals on their menu items as consumers increasingly opt for value-oriented meals in the face of sticky inflation.

Data from Placer.ai showed that foot traffic at Burger King chains in the U.S. stayed positive in the first quarter, defying a weaker trend in January due to colder weather.

On the other hand, Tim Horton continued to benefit from robust demand for its coffee.

Separately, the company said it would invest an additional $300 million towards its plan to modernize Burger King outlets in the U.S., and will provide cash incentives to top performing restaurant operators and support outlet rebuilds and remodels.

The company reported first-quarter revenue of $1.74 billion. Analysts on average expected $1.69 billion, according to LSEG data.

The company reported quarterly same-store sales growth of 4.6%, compared with market estimates of growth of 3.78%.

(Reporting by Juveria Tabassum; Editing by Shailesh Kuber)