The revenues of Restaurant Brands International fell by 8% in the third quarter of the financial year.
The fast food company’s net profit for the third quarter fell to £111.04 million.
The Toronto-based company reported a 7% decline in like-for-like sales.
Restaurant Brands International (TSE: QSR) said on Tuesday that its third quarter revenues were down 8% as sales of Tim Hortons and Burger King remained under pressure following the easing of COVID-19 restrictions. Popeyes, on the other hand, saw sales in the same stores rise again by more than 10% in the last quarter.
The company’s shares fell by more than 1% in pre-market trading. Restaurant Brands International lost a further 3% in the final hours of Tuesday. So far this year, the share has now fallen by almost 15%, but has recovered by around 75% since March. Learn more about the financial analysis of a company.
Restaurant Brands’ financial results for the 3rd quarter compared to analysts’ estimates
According to Refinitiv, analysts had expected the Canadian company to generate revenues of £1.03 billion in the third quarter. For earnings per share, their estimate was capped at 48.24 pence per share. Restaurant Brands was in line with Tuesday’s revenue forecast but reported higher earnings per share of 52.07 pence in the third quarter.
At £111.04 million, the multinational’s net profit for the third quarter fell to £111.04 million from £153.92 million in the same quarter last year. Its net revenue for the last quarter was also 8% lower on an annualized basis. In the previous quarter (Q2), Restaurant Brand’s sales were down 25% due to the ongoing global health crisis.
The fast-food holding company also saw a 7% decline in sales in its comparable businesses in the third quarter. Tim Hortons reported a 12.5% decline in sales in the same stores in the third quarter, while comparable sales in Popeyes stores that have been open for at least 17 months were 17.4% higher. Sales in Burger King’s Drive Thru stores were 28% higher in the third quarter.
According to CEO Jose Cil, Restaurant Brands doubled its sales in Drive Thru and expanded by 10,000 locations.
Restaurant Brands predicts weak performance in the 4th quarter
The Toronto-based company also said on Tuesday that its fourth quarter financial performance is likely to remain under pressure due to the COVID 19 crisis, which has so far infected more than 44 million people worldwide and caused over 1.1 million deaths.
Restaurant Brands International performed quite well on the stock market last year, with an annual profit of around 20%. At the time of writing this article it is estimated at £19.14 billion and has a price-earnings ratio of 25.13.