Restaurant Brands International Inc., the parent company of Burger King and other well-known restaurant brands, reported lower-than-expected third-quarter sales, highlighting the difficulty for many chain restaurants to attract customers amid rising costs. The company's third-quarter comparable sales grew 0.3%, lower than the 7.0% in the same period last year and also lower than analysts' expectations; system-wide sales were US$11.4 billion, also lower than analysts' expectations.
Moreover, total revenue was US$2.291 billion, up 25% year-on-year, but lower than analysts' expectations of US$2.32 billion; net profit was US$357 million, lower than US$364 million in the same period last year; diluted EPS was US$0.79, the same as last year. Adjusted operating profit was US$652 million, up 7% year-on-year; adjusted EPS was US$0.93, lower than analysts' expectations of US$0.94, and US$0.90 in the same period last year.
The business in North America performed weakly, with the sales of Burger King, Popeyes Louisiana Kitchen and Firehouse Subs all declining in North America.
Josh Kobza, the company's CEO, said that comparable sales improved in October and added that the company still expects to achieve its target of at least 8% growth in adjusted operating profit in 2024 and beyond. It is worth noting that the company has been trying to renovate Burger King's stores in the United States, accelerate the service speed of Popeyes Louisiana Kitchen, and expand the area of Firehouse Subs' stores. These chain restaurants have also been trying to attract customers with discounts, including Burger King's US$5 package.