On Wednesday, Restaurant Brands exceeded fourth-quarter profit and sales expectations. Burger King's performance was boosted by promotions on its Whopper burgers, while Tim Hortons saw consistent demand for its Double Double and Iced Capp coffee.
Burger King's appealing offers led to a rise in U.S. comparable sales, contrasting with McDonald's, which faced a significant sales decline due to an E. coli outbreak. Analysts noted that Burger King and Wendy's gained market share during this period.
Burger King's U.S. comparable sales improved by 1.5%, while McDonald's experienced a 1.4% decline. Burger King strategically balanced its promotions with incentives to increase consumer spending per visit, resulting in growth, as pointed out by analyst Danilo Gargiulo.
Tim Hortons, contributing nearly half of the company's total revenue, benefited from its coffee demand, with quarterly revenue increasing by about 1%. Despite record high coffee prices, CEO Joshua Kobza mentioned that these commodity costs are not expected to lead to significant inflation for the company.
Restaurant Brands' fourth-quarter revenue of $2.30 billion surpassed analysts' average estimate, and their adjusted profit per share of 81 cents also exceeded expectations. The company's shares remained stable in morning trading, with a premarket increase of around 4% following the results.