News

Q2 financials for RBI: BK thriving, Tim Hortons lagging but heading to Spain

August 2, 2017

Popeyes, Burger King and Tim Hortons parent company, Restaurant Brands International Inc, not only released its Q2 financial results for the three brands today but also announced that it's taking Tim Hortons to Spain, according to separate news releases. 

Overall, Restaurant Brands International posted an EPS of 37 cents a share, with progress in systemwide sales for all three brands, according to CEO, Daniel Schwartz.

"In the second quarter, we continued to grow system-wide sales and profitability for all three of our iconic brands. In particular, we had notable strength at Burger King, with both strong comparable sales growth and net restaurant growth," Schwartz said in the release. "We also made good progress integrating Popeyes, and continue to be excited about the long-term growth potential for the brand."
Overall the company reported these results for the three-month quarter ending June 30: 

• Total Revenues of $1,132.7 million versus $1,040.2 million in prior year period.
• Diluted EPS of 37 cents, down from 38 cents last year. 
• Comparable sales growth in constant currency was 0.8 percent at Tim Hortons, 3.9 percent at Burger King and 2.7 percent at Popeyes Louisiana Kitchen ("PLK")
• Systemwide sales growth in constant currency was 2.6 percent at Tim Hortons, 10.6 percent at Burger King and 3.3 percent at Popeyes.
• Adjusted Diluted EPS grew to 51 cents from prior year's 41 cents. 

For the second quarter of 2017, global systemwide sales growth was driven by net restaurant growth of 4.3 percent but partially offset by a decline in comparable sales growth of 0.8 percent due primarily to Canada comparable sales growth of 0.6 percent. Total Revenues for the quarter grew 1.6 percent over the prior year, reflecting growth in systemwide sales.

For the second quarter of 2017, U.S. systemwide sales growth was driven by net restaurant growth of 5.3 percent, partly offset by a drop in comparable sales growth of 2.7 percent, driven by comparable sales growth of 3.3 percent. 

Tim Hortons headed to Spain

The financials were accompanied by a release announcing that the company has also agreed to partner in a joint venture to develop and grow Tim Hortons in Spain. 

"We are thrilled to announce plans to launch the iconic Tim Hortons brand in Spain, which is one of the largest café markets in Europe," Schwartz said in the release."We see a unique opportunity for our partner to build brand awareness and open restaurants in this dynamic market." 

The company has already announced a similar agreement for Tim Hortons expansion to Mexico, Great Britain and the Philippines as part of international growth objectives for the Canadian-originated brand.

"Our partner has the right combination of market expertise and QSR experience to help drive growth for the Tim Hortons brand in the Spanish market," said Lucas Muniz, Regional President of Tim Hortons, International Lucas Muniz. "Spain is an attractive growth market that is well suited to the unique offerings available at Tim Hortons."