Restaurant Brands profits shrink as pandemic shuts Tim Hortons and other outlets

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Restaurant closures due to the COVID-19 pandemic have depressed Restaurant Brands International Inc.

The Toronto parent company of Tim Hortons, Burger King and Popeyes Louisianan Kitchen announced a 36% drop in second-quarter net income to US $ 164 million or 35 cents Canadian per share.

The company’s total revenue was US $ 1 billion in the quarter ended June 30, compared to US $ 1.4 billion in the same period last year. The declines are attributable to the company’s two largest franchise brands, Burger King and Tim Hortons. Network-wide sales were down 25.2% at Burger King and 33.4% at Tim Hortons. Popeyes meanwhile recorded sales growth of 24%.

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Overall, restaurant comparable sales – an important metric that tracks sales unaffected by store openings or closings – fell 29.3 percent. Canada lagged slightly with global results, with comparable sales declines of 29.9%. When the pandemic began to affect sales in the last two weeks of March, comparable sales of Tim Hortons in Canada fell by a percentage in the mid-1940s. At the end of July, comparable sales of Tim Hortons were down in the “negative mid-teens,” the company reported.

Most of RBI’s restaurants around the world have reopened, although many operate with limited service through delivery, take-out and drive-thru.

“It was encouraging to see our investments in digital channels generate significant additional sales during the quarter and we are delighted that in our home markets, brand digital sales have grown by over 120% year-over-year and over 30% over a quarter. – during the quarter, ”CEO Jose Cil said in a statement Thursday.

By the end of July, “nearly all” restaurants in North America and the Asia-Pacific region were open. At the same time, 90% of the sites were open in Europe, the Middle East and Africa and 80% in Latin America. The company said Thursday that COVID-19 will also continue to impact its third quarter results.

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