Rstaurant Brands International (QSR) Q3 2022 earnings

Restaurant Brands International on Thursday reported quarterly earnings and revenue that beat analysts’ expectations, fueled by sales growth at Burger King and Tim Hortons.

Shares of the company were 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: 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%.

Burger King reported same-store sales growth of 10.3%, driven by strong international growth. In the U.S., the burger chain has been lagging behind the competition, pushing Restaurant Brands to announce a $400 million plan to revive sales in September. This quarter, U.S. same-store sales rose 4%.

Tim Hortons’ same-store sales increased 9.8%. The coffee chain reported Canadian same-store sales growth of 11.1%, demonstrating that its turnaround has taken hold. Restaurant Brands CEO Jose Cil said in a statement that new menu items and “great value for money” drove higher sales at Tims.

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.

Restaurant Brands’ results come after 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.

Last week, McDonald’s also 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.

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.