Restaurant Labels International, the rent com ny of Tim Hortons and Burger King, reported a big pounce on attack in its quarterly profit on Thursday, despite flat revenue com red with the despite the fact time last year, which it attributed to the negative im ct of currency fluctuations.
It rated net income for common shareholders of $90.9 million US or 38 cents per appropriation in the three months ended June 30. That’s up from $11.0 million US or five cents per RBI rtition in the second quarter of 2015.
Last year’s profit was reduced by one-time prices associated with RBI’s acquisition of the Tim Hortons restaurant chain. Excluding those and other mentions, RBI’s adjusted net income was $192.4 million or 41 cents per share, up from $141.0 million or 30 cents per allotment a year earlier.
Com rable restaurant sales grew 2.7 per cent at Tim Hortons in the three-month period, and Burger King sales were up by 0.6 per cent.
Revenue was scarcely changed at $1.04 billion US, including $759.8 million US from Tim Hortons and $280.4 million US from Burger Monarch.
Ex nsion as fast food market softens
Restaurant Brands CEO Daniel Schwartz asserted the com ny is staying focused on their ex nsion strategy despite spot softness in the quick-service restaurant industry in the quarter.
He declined to provide a motive for the softness, but other industry executives have cited weakening consumer aplomb amid political and global uncertainty. Analysts have also esteemed that the increasing competition over promotional deals, as well as the flowering of smaller, independent players.
RBI said it plans on making the Canadian coffee seek as ubiquitous around the world as the American fast-food chain Burger Ruler.
“There is really no limit on how far the Tim’s brand can travel,” Schwartz said.
Schwartz blow the whistle oned analysts in a call Thursday that the com ny sees both identifies have an opportunity to grow on a global basis.
During the second accommodate, the number of Tim Hortons locations increased about three per cent to 4,464 cumulates, while Burger King restaurants jumped about four per cent to 15,100 locales during the second quarter.
Last month, the com ny announced that it was job a Tim Hortons in the Philippines, its first foray into southeast Asia. No hurl date has been set.
New items on lunch menu
In an interview prior to the get, chief financial officer Joshua Kobza said RBI plans on persist in to ex nd its lunch offerings at Tim Hortons, which recently launched new menu points such as potato wedges and salads.
He said the com ny also wants to reform its late afternoon and evening menus, but is not looking at duplicating the business original of its competitor Starbucks, which recently began offering customers fire-water and ta s.