New products drive sales growth for Burger King, Tim Hortons
July 27, 2015
by Monica Watrous
New products like Chicken Fries and a Nutella-topped donut drove sales at Tim Hortons and Burger King.
OAKVILLE, Ontario – Such new products as Chicken Fries and a Nutella-topped donut drove strong comparable sales growth at Tim Hortons and Burger King, boosting profit for parent company Restaurant Brands International Inc., in the recent quarter.
“We recorded our best quarterly comparable store sales performance at Tim Hortons since 2011 with comparable sales growth of 5.5 percent,” said Daniel Schwartz, CEO of Restaurant Brands International, during a July 27 earnings call with financial analysts. “At Burger King, same store sales grew by 6.7 percent in the second quarter, our best quarterly performance in this metric in nearly a decade.”
For the second quarter ended June 30, Restaurant Brands International reported net income attributable to shareholders of $9.6 million, equal to 5 cents per share on the common stock, which compared with $75.1 million, or 21 cents per share on the common stock, for the prior year period. The company’s adjusted EBITDA increased to $427 million, up 19 percent from the prior-year pro forma amount.
Revenues for the quarter totaled $1,041.4 million, which compared with $261.2 million for the previous year.
During the quarter, Tim Hortons opened 52 net new restaurants, and Burger King opened 141. System-wide sales increased 8.4 percent at Tim Hortons and 11.6 percent at Burger King in constant currency.
Burger King's A.1. Hearty Mozzarella Bacon Cheeseburger lifted sales for the chain.
At Burger King, sales growth was driven by new product launches, including the A.1. Hearty Mozzarella Bacon Cheeseburger, Extra Long Pulled Pork Sandwich, and Chicken Fries. Tim Hortons’ performance reflected strength in dark roast coffee and the Creamy Chocolate Chill beverage with contributions from growth in the lunch day part.
“Our strong same-store sales growth and net restaurant growth drove meaningful value for all of our key stakeholders this quarter,” Schwartz said. “We’re committed to growing the Tim Hortons and Burger King brands for the long run and are excited about the opportunities that this growth will create for our franchisees, our team members and our employees.”
Restaurant Brands International common shares began trading on the Toronto Stock Exchange and New York Stock Exchange under the trading symbol QSR on Dec. 15, 2014. The combined company has approximately $23 billion in system sales, with more than 19,000 restaurants in approximately 100 countries and US territories.
Company shares were up nearly 4 percent in mid-morning trading on the New York Stock Exchange on July 27 from the previous close of $40.09.