Restaurant Brands Reports Mixed Q3 results

Restaurant Brands International Inc QSR reported third-quarter FY21 sales growth of 11.8% year-on-year, to $1.495 billion, missing the analyst consensus of $1.52 billion.
Comparable Sales for Tim Horton rose 8.9%, Burger King increased 7.9%, and Popeyes Louisiana Kitchen fell 2.4%.
Revenue for Tim Horton's climbed 16.1% Y/Y, Burger King rose 7.9%, and Popeyes Louisiana Kitchen increased 1.2%.
General and administrative expenses increased 28.1% Y/Y. The operating margin was 35.6%, and operating income for the quarter rose 27.8% to $533 million. Adjusted EBITDA rose 8.2% Y/Y.
Restaurant Brands held $1.8 billion in cash and equivalents as of September 30, 2021. Net cash provided by operating activities for nine months ended September 30, 2021, totaled $1.3 billion.
Adjusted EPS of $0.76 beat the analyst consensus of $0.74.
The company noted COVID-19 contributed to labor challenges, resulting in reduced operating hours and service modes at select restaurants and supply chain pressures.
Looking ahead, the company expects to see a continued impact from COVID-19 on its results in 2021.
Price Action: QSR shares are trading higher by 1.18% at $62.69 in premarket on the last check Monday.

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