The company’s shares were up 2% in pre-market trading. The stock, which has a market value of $ 27.2 billion, has fallen 7% so far this year.
Here’s what the company reported for the quarter ended June 30 compared to what Wall Street expected, based on an analyst survey by Refinitiv:
- Earnings per share: 33 cents, adjusted, vs. 31 cents expected
- Turnover: 1.05 billion dollars against 1.05 billion dollars expected
Burger King’s parent company reported second-quarter net income of $ 163 million, or 35 cents per share, from $ 257 million, or 55 cents per share, a year earlier.
Excluding items, Restaurant Brands gained 33 cents per share, exceeding the 31 cents per share expected by analysts polled by Refinitiv.
Net sales fell 25% to $ 1.05 billion, meeting expectations. Digital sales soared 120%, more than doubling from the previous year.
Tim Hortons, which typically contributes about 60% of Restaurant Brands’ total revenue, saw its same-store sales drop 29.3%. Even before the pandemic, the Canadian coffee chain struggled with slowing sales growth in its domestic market. Now that the virus is changing consumer behavior, chains from Starbucks to Taco Bell are reporting that fewer customers are stopping by for breakfast or their early morning java. Tims’ same-store sales were still down in mid-teens through the end of July.
Burger King reported a 13.4% drop in same store sales. The US hamburger chain’s comparable store sales declined 9.9% in the quarter. Restaurant Brands said sales have improved since reaching a low point in March. At the end of July, its same-store sales were unchanged from a year ago.
Popeyes, which saw same-store sales climb nearly 25%, also saw sales pick up throughout the quarter and into July. At the end of July, its same-store sales were up 20 years.
About 93% of Restaurant Brands locations have reopened globally. Almost all of its restaurants in North America and Asia-Pacific are open. In Europe, the Middle East and Africa, only around 10% of locations are closed temporarily and around 20% of Latin American restaurants are still closed. The business excludes a location from its monthly same-store sales calculations if it has been closed for a significant portion of that month.
Restaurant Brands said it couldn’t predict the future impact of the virus on its business or when it will resume normal operations, but it expects Covid-19 to weigh on its third quarter results.
The company also said it had fully repaid the $ 1 billion revolving credit facility it had drawn on in mid-March, amid uncertainty in credit markets as the crisis unfolded. .
Restaurant Brands said Thursday it has notified the Toronto Stock Exchange of its intention to renew authorization for its buyback program. Many companies have suspended their buyback programs in response to the pandemic and the crisis that followed.
Read the full report here.