Restaurant Brands International (QSR, Financial), the parent company of popular chains like Burger King, reported third-quarter sales growth that fell short of expectations, highlighting challenges faced by many chains in attracting customers amid rising costs. The company's comparable sales increased by 0.3%, significantly lower than the 7.0% growth seen in the same period last year and below analysts' forecasts. System-wide sales reached $11.4 billion, which also missed expectations.
Total revenue increased by 25% year-over-year to $2.291 billion but did not meet the anticipated $2.32 billion. The net profit was $357 million, slightly down from $364 million a year earlier, with diluted earnings per share steady at $0.79. Adjusted operating profit rose by 7% to $652 million, while adjusted earnings per share were $0.93, missing the projected $0.94, though up from $0.90 in the prior year.
Performance in the North American market was weak, impacting sales across its brands, including Burger King, Popeyes Louisiana Kitchen, and Firehouse Subs. CEO Josh Kobza mentioned that comparable sales improved in October and expressed confidence in achieving at least an 8% adjusted operating profit growth in 2024 and beyond. Moreover, the company continues to refurbish Burger King stores in the U.S., enhance service speed at Popeyes, and expand Firehouse Subs' store size. Efforts to attract customers include offering value deals like Burger King's $5 meal package.
