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Burger King fails to deliver on expectations in Q1

April 28, 2016

Burger King didn't deliver on analyst expectations in Q1 despite a big menu addition.

Restaurant Brands International Inc., parent of Burger King and Tim Hortons, reported a 1.6 percent dip in revenue, which hit $918.5 million. Street watchers were hoping for $982.2 million, according to a Bloomberg report.

The increasingly competitive fast food market has players changing up menus, loyalty programs and deals, as well as introducing significant price cuts.

Yet in a NASDAQ report, the brand said that its results showed success with product debuts and growth in the expansion of both chains.

"Innovative product launches and continued expansion of our global footprint drove favorable comparable sales and system-wide sales growth for the quarter," said CEO Daniel Schwartz.

The report said that the brand enjoyed a profit of $117.5 million, an increase of $60.4 million compared with a year ago.