Restaurant Brands International (QSR) Q3 2022 earnings

Restaurant Brands International on Thursday reported stronger sales at Burger King and Tim Hortons, joining the fast-food companies seeing a bump in sales as consumers look for more affordable options.

The results come after rival Yum Brands on Wednesday also reported stronger same-store sales at its Taco Bell and KFC chains. The company said it generally isn’t seeing a change in consumer behavior and that more premium menu items in the U.S. are proving popular.

And last week, McDonald’s said its U.S. same-store sales were fueled by stronger traffic and price hikes. The burger giant said it is drawing more customers who are opting for fast-food instead of dining out at pricier places.

Restaurant Brands CEO Jose Cil told CNBC that the company isn’t seeing any material trading down or out of its chains. Like the rest of the industry, Burger King, Popeyes and Tim Hortons have all raised prices to mitigate rising food and labor costs.

“We work closely with our franchisees to make sure we consider all the factors: CPI, food away from home and food at home,” he said.

Shares of Restaurant Brand rose less than 1% in morning 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: 96 cents adjusted vs. 80 cents expected
• Revenue: $1.73 billion vs. $1.66 billion expected

Net sales in the quarter rose 15.5% to $1.73 billion. Global same-store sales grew 9.1%, with digital sales now accounting for about a third of system-wide sales.

Burger King reported same-store sales growth of 10.3%, fueled by its performance overseas. In the U.S., the figure rose 4% as the Restaurant Brands works to revive sales with a turnaround plan.

Tim Hortons’ same-store sales increased 9.8%, which the company attributed in part to new menu items.

The coffee chain reported Canadian same-store sales growth of 11.1%, demonstrating that its turnaround has taken hold. Demand for its breakfast and lunch food is higher, and sales of cold coffee drinks are also climbing. Still, locations in Canadian city centers are lagging as office workers continue to work from home.

At Popeyes Louisiana Kitchen, same-store sales rose 3.1%. The fried chicken chain’s U.S. same-store sales rose 1.3%.

The latest addition to Restaurant Brands’ portfolio, Firehouse Subs, reported flat same-store sales. The company bought the sandwich chain in late 2021 for $1 billion and has been focusing on expanding it internationally.

For the three months ended Sept. 30, Restaurant Brands reported a net income of $530 million, or $1.17 per share, up from $329 million, or 70 cents per share, a year earlier.

Like other multinational companies, Restaurant Brands’ results were hurt by the strong dollar. The company reported a $30 million loss from foreign exchange rates.

Excluding items, the company earned 96 cents per share.