Popeyes Sandwich Demand Fuels Profit Beat at Burger King Owner
Leslie Patton, Bloomberg News
via Financial Post (Canada) - February 10, 2020
(Bloomberg) — Restaurant Brands International Inc. rose after posting earnings that topped analysts’ estimates, driven by surging popularity of the Popeyes chain’s chicken sandwich.
Popeyes same-store sales soared 34% in the the fourth quarter, more than double the 15% gain analysts had predicted, according to Consensus Metrix. The brand’s business in the U.S. catapulted after it introduced a new chicken sandwich last year. It sold out in the summer, and was brought back in November chainwide.
The “chicken sandwich has proven to be a game changer for the brand in every way,” Restaurant Brands Chief Executive Officer Jose Cil said in a statement.
The shares rose as much as 3.6% to $66.17 in New York Monday. The stock was little changed this year through Friday’s close, after gaining 22% last year.
Restaurant Brands, which also owns Burger King and Tim Hortons, reported fourth-quarter earnings, excluding some items, of 75 cents a share, exceeding the average analyst estimate by two cents...
Tim Hortons had a rough year as sales tumbled
'Performance did not reflect the incredible power of our brand'
Jake Edmiston, Financial Post (Canada)
February 10, 2020
Sales at Tim Hortons tumbled in 2019, down more than US$150 million compared to the previous year, the coffee chain’s parent company Restaurant Brands International Inc. reported on Monday.
RBI chief executive Jose Cil said the “performance did not reflect the incredible power of our brand.”
“It is clear that we have a large opportunity to refocus on our founding values and what has made us famous with our guests over the years,” Cil said in a news release.
The chain’s plan for 2020 is to slow the surge of menu experiments, which have ranged from a failed Beyond Meat burger to omelette bites. In an interview with the Financial Post last month, RBI acknowledged that the constant menu additions in 2019 complicated its kitchen operations and slowed down service times. Tim Hortons now will focus on remastering its basics: coffee, baked goods and breakfast, RBI said.
In its fourth quarter, Tims comparable sales — a common gauge for success in retail — fell by 4.3 per cent across the chain...
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