Restaurant Brands International Inc (NYSE:QSR) this morning posted better-than-expected third quarter earings results, driven largely by overseas growth.
The Ontario, Canada-based operator of Burger King restaurants and Tim Horton coffee shops reported Q3 EPS of $0.43 per share, beating Wall Street’s estimate of $0.41. Revenue rose 5.5% from last year to $1.08 billion, also edging out analyst’s view for $1.06 billion.
On a constant currency basis, QSR said that Burger King comparable sales rose 1.7% in the latest quarter, while Tim Hortons comps rose 2.0%. Comparable sales are an important measure of a restaurant chain’s performance, since they compare year-over-year sales at locations open at least one year.
Restaurant Brands noted that Burger King’s U.S. and Canada comparable sales were weak in comparison to international segments, which include Asia Pacific, Latin America, and the Caribbean, along with Europe, the Middle East, and Africa.
The company said via press release:
Daniel Schwartz, Chief Executive Officer of Restaurant Brands International Inc. (“RBI”) commented, “We continued to grow our iconic brands, TIM HORTONS® and BURGER KING®, increasing system-wide sales through restaurant development and focus on guest satisfaction. We are encouraged with the progress this quarter and are excited by the long term growth prospects for our brands.”
QSR shares were unchanged in premarket trading Monday. Prior to today’s report, QSR stock had gained 25.8% year-to-date, easily beating out the S&P 500’s 4.96% rise in the same period.