Restaurant Brands International (QSR) Q2 2022 earnings

Restaurant Brands International on Thursday reported quarterly earnings and revenue that topped Wall Street’s expectations, fueled by international sales growth at Burger King and the recovery of Tim Hortons’ Canadian locations.

In the U.S., the company said same-store sales were flat at Burger King and Popeyes.

Shares of the company were roughly flat in premarket trading.

Here’s what the company reported compared with what Wall Street was expecting, based on a survey of analysts by Refinitiv:

• Earnings per share: 82 cents adjusted vs. 73 cents expected
• Revenue: $1.64 billion vs. $1.57 billion expected

Restaurant Brands reported second-quarter net income attributable to shareholders of $236 million, or 76 cents per share, down from $259 million, or 84 cents per share, a year earlier.

Excluding costs related to its acquisition of Firehouse Subs and other items, the company earned 82 cents per share.

Net sales rose 14% to $1.64 billion. Global same-store sales across the company’s portfolio increased 9% in the quarter, fueled by the performance of Tim Hortons and Burger King.

Tim Hortons reported same-store sales growth of 12.2%, beating StreetAccount estimates of 8%. The coffee chain’s Canadian same-store sales increased 14.2% in the quarter. Tims, which accounts for about 60% of Restaurant Brands’ revenue, has taken longer to bounce back from the pandemic, largely because of its home market’s tougher restrictions.

Burger King’s same-store sales increased 10% in the quarter, topping Wall Street’s expectations of 3.4%. Outside the U.S., same-store sales climbed 18.4%. But its home market’s same-store sales were flat. Restaurant Brands executives are planning to share more details on its turnaround strategy for Burger King’s U.S. restaurants in early September.

Popeyes Louisiana Kitchen reported same-store sales growth of 1.4%, beating estimates of 0.3%. Like Burger King, Popeyes reported flat same-store sales in the U.S. The fried chicken chain has seen its growth lag in recent quarters as it faces tough comparisons to the earlier days of the pandemic, when its chicken sandwich fueled soaring sales.

Firehouse Subs, the newest addition to Restaurant Brands’ portfolio, saw its same-store sales fall 1.4% in the quarter.

Read the full earnings report here.