Tim Hortons Boosts Restaurant Brands Revenue

Restaurant Brands International (RBI) announced on Thursday that its quarterly revenue surpassed analysts' expectations, driven by robust sales at Tim Hortons and its international restaurants. The company reported a second-quarter net income of $399 million, or 88 cents per share, an increase from $351 million, or 77 cents per share, in the same period last year. Adjusted earnings per share came in at 86 cents, slightly below the anticipated 87 cents. Net sales rose 17% to $2.08 billion, bolstered by recent acquisitions of Burger King locations in the U.S. Tim Hortons emerged as the standout performer among RBI's four chains, achieving a same-store sales growth of 4.6%. The chain's strategic initiatives to attract afternoon customers, including the introduction of flatbread pizzas and a broader range of cold coffee drinks, have contributed to this success. In contrast, Popeyes reported a modest same-store sales increase of 0.5%, while both Burger King and Firehouse Subs experienced slight declines of 0.1% for the quarter. Despite the challenges at Burger King, executives remain optimistic about the brand's ongoing turnaround efforts. They acknowledged that current industry pressures may be obscuring significant improvements within the chain. Additionally, the company noted that discounts offered to franchisees have proven profitable, leading to an extension of these promotions into October. RBI's international locations also showed resilience, with same-store sales growth of 2.6%, driven by strong performances in Brazil, Australia, and Japan, which helped mitigate weaknesses in markets like China and the Middle East.