Shares of Restaurant Brands International (RBI) are on the rise after the company announced impressive sales figures for the second quarter of the year. The Canadian-American fast-food holding company, which is home to popular brands Tim Hortons and Burger King, reported a total revenue of $1.76 billion, surpassing analyst expectations of $1.74 billion. This resulted in a 14% growth in consolidated system-wide sales for RBI.
Net income for the quarter also saw a slight increase, reaching $351 million, or 77 cents per share, compared to $346 million, or 76 cents per share, in the same period last year. These positive results were driven by solid performances from both Tim Hortons and Burger King, with Tim Hortons experiencing a 15% growth in system-wide sales and Burger King seeing a growth of 13.8%.
Comparable sales for both brands followed similar trends, with Tim Hortons’ growth falling slightly to 11.4% and Burger King’s growth increasing to 10.2%. RBI’s other brands, Popeyes and Firehouse Subs, also showed steady growth at 2.1% and 4.1% respectively.
Scotiabank analyst George Doumet praised these strong operating metrics, noting that Tim Hortons and Popeyes exceeded expectations in terms of same-store sales growth. With these positive results, Doumet believes that RBI’s stock valuation will continue to improve, especially considering the strong performance of Burger King, which is the largest unit within the company.
RBI’s stock has already climbed more than 21% this year and has seen an increase of approximately 19% over the past 52 weeks.
