Restaurant Brands International Incorporated on Thursday, February 11, missed quarterly profit estimates and posted a drop in comparable sales at its Burger King and Popeyes chains as a resurgence in COVID-19 cases slowed customer traffic to its outlets.
The company’s United States-listed shares slipped 4.3% to $57.51.
The reinstatement of virus restrictions in many parts of the world led to temporary dining room closures and curfews, which kept people from venturing out to get their fast-food fix and weakened the recovery process for a battered hospitality sector.
Burger King posted a 7.9% fall in 4th quarter comparable sales, while analysts had forecast a minor gain.
Popeyes saw its comparable sales fall 5.8% as the chain struggled to repeat the explosive initial growth of its social-media favorite chicken sandwich, which was launched in the latter half of 2019.
The Popeyes sandwich also faces a threat from rivals such as McDonald’s, which is rolling out 3 versions of its own fried-chicken sandwich.
Comparable sales at Tim Hortons, the Canadian coffee chain that typically accounts for more than half of Restaurant Brands’ revenue, slumped 11% as fresh lockdowns disrupted consumers’ normal routines and kept them from getting their morning Joe. However, the numbers were slightly better than analysts’ expectations of an 11.7% drop.
“Breakfast remains significantly impacted at Tims Canada and Burger King US, especially in core urban areas,” chief executive officer Jose Cil said.
As vaccines begin to roll out, chief corporate officer Duncan Fulton told Reuters that he is optimistic the traffic at outlets would begin to improve.
Excluding items, the company earned 53 cents per share, compared with estimates of 65 cents, according to IBES data from Refinitiv.
Total revenue in the reported quarter fell 8.2% to $1.36 billion, but beat estimates of $1.33 billion. – Rappler.com
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