Restaurant Brands earned 75 cents per share in the fourth quarter on revenue of $1.48 billion versus expectations of 73 cents per share and $1.46 billion. Net income fell from $301 million a year ago to $257 million, which management attributed to an increase in income tax expense, the change in other operating expenses (income), foreign exchange changes, and a loss on early extinguishment of debt.
Chicken, Burgers And Coffee
Popeyes performance was stellar. On top of a same-store sales growth north of 30%, system-wide sales grew 42.3% as the popular chicken sandwich was relaunched nationwide in early November.
"Popeyes launched an iconic Chicken Sandwich that has proven to be a game changer for the brand in every way," Restaurant Brands CEO Jose Cil said in a statement.
Burger King reported its best full-year of restaurant growth in two decades as it added more than 1,000 net new restaurants while existing stores delivered more than 9% system-wide sales growth. On the other hand, Tim Hortons' showed a same-store sales decline of 4.3% in the quarter. Cil said the performance doesn't "reflect the incredible power of our brand."
The company didn't provide any financial guidance in its earnings release, but did say it will "refocus" on what made Tim Hortons' successful over the years. This will be "the basis four plan in 2020," the CEO said.
The stock traded higher early in the session, but was down marginally to $63.69 per share at time of publication.
Photo Courtesy of Popeye's Chicken