Restaurant Brands International (QSR) Earnings Q4 2022

In this photo illustration, a Burger King Whopper hamburger is displayed on April 05, 2022 in San Anselmo, California. A federal lawsuit has been filed and is seeking class-action status, alleging that fast food burger chain Burger King is misleading customers with imagery that portrays its food, including the Whopper burger. which is much larger than the food actually being served to customers.

Justin Sullivan | Getty Images

Restaurant Brands International posted a strong fourth quarter on Tuesday and appointed chief operating officer Joshua Kobza as its new chief executive, effective March 1, replacing Jose Sill.

“Over the past several years, the Board of Directors has worked with management to create a well-thought-out succession plan for key positions, so it is a natural transition for Josh to lead our next phase of growth,” Chairman Patrick Doyle said In Tuesday’s announcement.

Sill will remain with the company for a year as a consultant to help with the transition.

The leadership change comes as the company works to revive and expand some of its flagship restaurants. Restaurant brands include Burger King, Tim Hortons, Popeyes, and most recently the Firehouse subscription chain.

Here’s How Restaurant Brands Fared fourth quarter, That compared to Wall Street’s forecast, based on an average of analysts’ estimates compiled by Refinitiv:

  • Adjusted Earnings Per Share: 72 cents vs 74 cents
  • Income: $1.69 billion vs. $1.67 billion expected

For the three months ended December 31, the company reported net income of $336 million, or 74 cents per share, up from $262 million, or 57 cents per share. one year ago,

Reported quarterly revenue of $1.69 billion, an increase of nearly 9% year-over-year.

Restaurant Brands reported 8% growth in overall same-store sales during the fourth quarter and nearly 12% growth in systemwide sales.

Its flagship burger chain, Burger King, saw same-store sales increase by 8.4% during the period. Sales in the US alone increased by 5%.

The company is working to rejuvenate Burger King’s domestic sales and in September Burger King announced a $400 million investment plan to boost advertising campaigns and renovate the chain’s restaurant locations.

At the end of the fourth quarter, the company said it had funded $30 million of that turnaround plan. The company had earlier said that it expected to get the benefit of the turnaround in 2025.

Restaurant Brands International Inc. Joshua Kobza, former chief financial officer of the U.S., speaks during a Senate Permanent Subcommittee Investigation hearing in Washington, DC, US, Thursday, July 30, 2015.

Andrew Harrer | Bloomberg | Getty Images

Tim Horton’s same-store sales increased 9.4% during this period. In Canada alone, same-store sales for the coffee brand increased by 11%. is chaining expand more internationallyTexas and Florida in particular are being eyed to target Canadians traveling to warmer climates for the winter.

Popeyes saw a 3.8% increase in same-store sales. series, which saw an increase in sales with 2019 its chicken sandwich debuthas been stagnant since then and has only seen an increase of 1.5% in the US

Restaurant Brands added Firehouse Subscription to its portfolio in 2021. That chain saw a 0.4% same-store sales increase during the period.

Restaurant brands aren’t immune to industry-wide rising costs and losses in China and Russia. The company said it suffered less loss from Covid-related disruptions during the fourth quarter, although it noted that it had to temporarily close some of its restaurants in markets such as China, which experienced a resurgence in cases.

It also said it did not make any new profits from Russia in 2022 and does not expect any in 2023. The company suspended corporate support for a large Burger King franchise in the country last year in light of Russia’s invasion of Ukraine.

Covid and the war in Ukraine have created a difficult macroenvironment for the company due to foreign exchange headwinds and rising interest rates. Restaurant Brands said Tuesday it expects an “adverse impact on our business” if it cannot adjust prices to offset higher costs.

So far, the high prices domestically haven’t deterred the company’s consumer base. Fast food companies across the industry have seen increased demand Among budget-conscious customers, outstripping fast-casual dining options.

Yum Brands Last week reported a strong fourth quarter, mostly propped up by its Taco Bell segment as weaker China sales weighed down on Pizza Hut and KFC. The company attributed the American momentum to affordable options across its range.

Similarly, McDonald’s profits from changes in consumer spending behavior. a fourth quarter revenue bump Fueled by higher menu prices and increased demand.

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