Restaurant Brands sees Q1 profit rise but warns of broader industry sales slump

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TORONTO — As Tim Hortons and Burger King's parent company saw its profit rise 18 per cent in its latest quarter, its chief executive noticed a broader trend taking hold across the industry: slowing sales. Restaurant Brands International Inc.

TORONTO — As Tim Hortons and Burger King's parent company saw its profit rise 18 per cent in its latest quarter, its chief executive noticed a broader trend taking hold across the industry: slowing sales.

"We know value is also top of mind, and while there are a few tactical things we can do on the margin, you should not expect us to reinvent the wheel on value," he told analysts on a Tuesday call. Kobza's remarks were made hours after RBI, which also owns Popeyes Louisiana Kitchen and Firehouse Subs, revealed it earned a net income of US$328 million or 72 cents per diluted share in its first quarter, up from US$277 million or 61 cents per diluted share a year earlier.

The increase came as consolidated comparable sales rose 4.6 per cent across its entire business. Tim Hortons saw comparable sales rise 6.9 per cent alone. Popeyes' comparable sales rose 5.7 per cent while Burger King's increased by 3.8 per cent and Firehouse Subs' edged up 0.3 per cent. The executives also used the discussion with analysts to highlight a wave of spending it announced Tuesday coming to Burger King.

 

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