OAKVILLE, ONT. — A push to open more Burger King, Tim Hortons and Popeyes restaurants around the world contributed to strong profitability and revenue growth for parent company Restaurant Brands International Inc. in the recent quarter. Accelerated restaurant expansion has been a key part of the company’s strategy in a competitive fast-food environment.
Net income attributable to common shareholders of Restaurant Brands International for the second quarter ended June 30 was $169.1 million, equal to 68c per share on the common stock, up from $89.5 million, or 38c, in the prior-year period. Revenues of $1,144.3 million were up 1% from $1,132.7 million last year.
The company adopted a new revenue recognition accounting standard on Jan. 1. The results reflect the previous accounting standards for comparability purposes.
“At Tim Hortons, systemwide sales grew by just over 2%, driven by net restaurant growth of 3% and flat comparable sales,” said Daniel S. Schwartz, chief executive officer of Restaurant Brands International, during an Aug. 1 earnings call. “Similar to our results from last quarter, this quarter’s results reflect slightly positive comparable sales in Canada, offset by softness in the U.S.
“At Burger King, we achieved systemwide sales growth of over 8%, reflecting net restaurant growth of over 6% and comparable sales of 1.8%. Our global comparable sales this quarter reflect similar results in the U.S. and internationally, with U.S. comparable sales of 1.8%.
“At Popeyes, systemwide sales growth accelerated to roughly 11%, driven by net restaurant growth of nearly 8% and comparable sales of 2.9%. Our comparable sales reflect improved results in the U.S. this year and a continuation of strong sales momentum in our international markets.
“We remained confident in our long-term strategies to drive sustainable comparable sales and profitability growth for all three of our iconic brands for many years to come.”
Initiatives underway include a new Breakfast Anytime campaign and the development of a new children’s menu at Tim Hortons restaurants. The company also is experimenting with delivery for its Popeyes Louisiana Kitchen brand.
“Popeyes’ restaurants testing delivery in the U.S. have performed particularly well, and we intend to further expand the number of restaurants offering delivery throughout the balance of the year,” Mr. Schwartz said.
At Burger King, results reflected continued strength from promotional offers and product innovation.
For the six months ended June 30, net income attributable to common shareholders of Restaurant Brands International was $320.1 million under previous reporting standards, which equaled $1.29 per share, up from $139.7 million, or 59c, in the prior-year period. Revenues totaled $2,216.1 million, up 3.9% from $2,133.3 million.
At the end of the quarter, the company operated 4,794 Tim Hortons, 17,022 Burger King and 2,975 Popeyes Louisiana Kitchen restaurants globally, increasing its total net restaurant count by 1,368 from the year-ago period.