OAKVILLE, Ont. — The owner of Tim Hortons and Burger King is reporting flat sales at its established locations in the first quarter but a nine per cent increase in revenue, which was above analyst estimates.
Restaurant Brands International Inc. (TSX:QSR) says comparable sales at locations open at least a year were down one-tenth of a per cent at both chains, after adjusting for currency fluctuations.
The Oakville, Ont.-based company says its net income, reported in U.S. dollars, was also flat compared with a year ago, at US$50.2 million or 21 cents per share.
However, RBI's overall revenue increased by $82.1 million to about US$1 billion — about three-quarters of it from Tim Hortons — and adjusted earnings rose 20 per cent to $170.6 million, or 36 cents per share.
The adjusted earnings were two cents above estimates compiled by Thomson Reuters, while revenue was about $10 million above the estimate of US$990.27 million.
The quarterly financial report follows RBI's acquisition of Popeyes Louisiana Kitchen, Inc. at the end of March, too late in the quarter to have any meaningful impact.