Restaurant Brands international inc. QSR.NQSR.TO beat quarterly revenue estimates as the parent company of Burger King and Popeyes benefited from a rebound in demand at its restaurant channels after the easing of COVID-19 restrictions in Canada and the United States.
Total revenue reached $1.55 billion in the fourth quarter ended Dec. 31, from $1.36 billion a year earlier. Analysts on average had expected revenue of $1.52 billion, according to IBES data from Refinitiv.
Burger King retires Whopper Off discount menu; Parent RBI to raise prices
Parent of Burger King Restaurant Brands international inc. QSR.NQSR.TO also said it had removed its most famous sandwich, the Whopper, from discount menus and would raise menu prices again this year to offset rising costs.
The company’s U.S.-listed shares rose mmore than 3% after exceeding outcome estimates for the fourth quarter ended December 31, driven by surging online sales and better-than-expected same-store sales growth at Burger King in the US and Tim Hortons in Canada.
Rrestaurant chains are raising prices because they pay higher costs for shipping, labor and commodities, including chicken, coffee and cooking oils, amid disruptions related to COVID-19.
Record inflation levels and disruption to staff from omicron variant blunted McDonald’s Corp profits MCD.N and the Starbucks Corp coffee chain SBUX.O.
Burger King’s Whopper – made from a quarter pound of grilled beef – is an “iconic” product that “has been on this discount platform for far too long”. Restaurant Brands CEO Jose Cil told Reuters in an interview.
The chain, which often caters to low-income customers, removed the item from its two-for-$5 offer, but may offer limited discounts on the burger in the future.
Burger King also said it would stop selling some less popular menu items, including sundaes, whipped toppings and chocolate milk.
Cil declined to provide timelines for overall price increases in 2022.
As mentioned above, Toronto, Ontario Restaurant Brands reported total revenue of $1.55 billion, beating estimates of $1.52 billion.
BU.S. comparable sales fell at Popeyes, in part because some locations had to cut operations by an average of an hour due to staff shortages.
Popeyes’ sales had soared even through much of the pandemic after the 2019 launch of its fried chicken sandwich, which was so popular that most rivals – including McDonald’s and Yum Brands Inc’s YUM.N KFC – introduced its own similar product.
Restaurant Brands reported fourth-quarter earnings per share of 74 cents, beating Refinitiv’s estimate of 69 cents.
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