OAKVILLE, Ontario – New products lifted third-quarter income at Restaurant Brands International (RBI) during the third quarter, while comparable sales growth slowed during the period.
Net income attributable to common shareholders for the third quarter ended Sept. 30 was $86.3 million, or 36 cents per diluted share, compared to $49.6 million, or 24 cents per diluted share, in the third quarter of 2015.
Total revenues for the quarter climbed 5.5 percent to $1,075.7 million compared with $1,019.7 million reported a year ago. The company attributed the result to organic growth at Tim Hortons and Burger King, in addition to cost discipline.
“We continued to grow our iconic brands, Tim Hortons and Burger King, increasing system-wide sales through restaurant development and focus on guest satisfaction,” said CEO Daniel Schwartz. “We are encouraged with the progress this quarter and are excited by the long term growth prospects for our brands.”
At Tim Hortons, new product launches drove comparable sales 2.0 percent higher compared to 5.3 percent reported in the third quarter of 2015; comparable sales climbed 1.7 percent higher at Burger King, which reported a 6.2 percent gain in comparable sales in the year-ago quarter. RBI, like McDonald’s and other companies in the quick-service segment, faces headwinds of declining restaurant visits by consumers who are taking advantage of lower prices for groceries and eating meals at home.
For the quarter, Burger King opened 143 net new restaurants, growing its restaurant count by 3.9 percent year-over-year, ending the quarter with 15,243 restaurants. Tim Hortons opened 28 net new restaurants and ended the quarter with 4,492 restaurants.
Shares in RBI listed on the New York Stock Exchange declined as much as 3 percent, despite better-than-expected earnings.