Restaurant Brands International Inc., beat estimates for quarterly results on Tuesday, boosted by higher prices and strong demand at its Burger King and Tim Hortons chains.
Same-store sales at Burger King and Tim Hortons jumped with more people ordering their sandwiches and coffees as they resumed their pre-pandemic routine.
While restaurant sales are on a recovery path, costs of everything from shipping to labor to commodities have been spiraling due to the COVID-19 pandemic and Ukraine crisis, which have forced restaurants including McDonald’s Corp. and Starbucks Corp. to raise prices to shield their profits.
Restaurant Brands, which usually caters to lower-income consumers, is also set to hike prices again this year after it stripped Burger King’s popular Whopper sandwich from discount menus earlier this year.
The price hikes have helped Toronto, Ontario-based Restaurant Brands cushion a hit from a 3 percent decline in comparable sales at its Popeyes chain, popular for its fried chicken sandwich. The brand is grappling with staffing shortages and stiff competition from rivals launching similar menu items.
The company’s total revenue rose to $1.45 billion in the first quarter ended March 31, from $1.26 billion a year earlier, topping analysts’ average estimate of $1.39 billion, according to Refinitiv IBES data.
Comparable sales at Tim Hortons in Canada rose 10.1 percent, while Burger King global same-store sales jumped 10.3 percent, both beating analyst estimates.
Net income attributable to common shareholders rose 2.2 percent to $183 million.
By Deborah Sophia