Burger King beats forecasts: net profit soared to $507 million
The main engine behind the strong results is the impressive recovery of the chain in the American and global market. Management expressed optimism and estimates that marketing adjustments will return Popeyes and Tim Hortons to the growth path as early as the second half of the year.
While fast-food giant McDonald's is showing only modest growth, its major competitor Restaurant Brands International (QSR) is shattering analyst forecasts for the second quarter. The main engine behind the strong results: an impressive recovery of the Burger King chain in the American and global market.
The company reported an adjusted profit of $1.07 per share (compared to a forecast of $1.03) and revenue of $2.52 billion — an increase of 4.5%, according to a report on CNBC. Bottom line, the net profit attributable to shareholders jumped to $507 million, compared to $189 million in the same quarter last year.
Burger King in the US showed an 8.5% jump in same-store sales, thanks to branch renovations, targeted marketing, and the upgrading of the "Whopper" meal. At the same time, Burger King in the international arena showed solid growth of 5.4% in same-store sales.
Popeyes, one of the group's brands, showed a 5.2% decline in US sales, against the backdrop of fierce competition and the tendency of consumers to look for discounted meals. Likewise, Tim Hortons showed flat sales due to marketing campaigns that did not hit the target audience precisely.
The performance of Burger King stands out particularly against McDonald's, which recorded growth of only 0.8% in same-store sales. Management at Restaurant Brands expressed optimism and estimates that marketing adjustments will return Popeyes and Tim Hortons to the growth path as early as the second half of the year.
