Burger King-parent Restaurant Brands beats quarterly estimates on value meals demand
Restaurant Brands International Reports Strong Quarterly Performance
May 6 (Reuters) - Restaurant Brands International on Wednesday edged past expectations for quarterly overall same-store sales growth and adjusted profit, helped by resilient demand at its Burger King chain.
Value Offerings Drive Fast-Food Industry Growth
Fast-food chains in the U.S. have increased value offerings as they try to woo budget-conscious consumers facing higher costs of living.
Competitor Performance
Taco Bell-parent Yum Brands also beat quarterly estimates last week, helped by its value offerings.
Fast-food giant McDonald's reports results on Thursday.
Quarterly Sales and Promotions
Restaurant Brands reported an overall same-store sales rise of 3.2% for the first quarter, compared with estimates of about 3% growth, according to data compiled by LSEG.
Promotional Strategies
In January, the company launched a limited-time $4.99 double cheeseburger meal, and has ongoing offers such as $5 and $7 deals since 2024.
Burger King U.S. Segment Performance
Comparable sales at its Burger King U.S. segment grew 5.8%, compared with a 1.1% fall reported in the same three-month period last year. Analysts on average had expected the segment to report comparable sales growth of about 3%.
"Burger King has been the primary focus for U.S. investors and the brand was the bright spot on the quarter," said RBC Capital Markets analyst Logan Reich.
Financial Results
Restaurant Brands' adjusted earnings per share for the three months ended March 31 were 86 cents, topping estimates of 82 cents.
(Reporting by Juveria Tabassum in Bengaluru; Editing by Maju Samuel)
