Burger King Parent Restaurant Brands' Misses On Q3 Topline Hit By Slowing Comps Growth

Restaurant Brands International Inc QSR reported third-quarter FY23 sales growth of 6.4% year-on-year to $1.837 billion, missing the analyst consensus estimate of $1.874 billion.

Consolidated comparable sales increased 7%, and net restaurants grew 4.2% versus the prior year. System-wide sales increased 10.9%.

Comparable sales for Tim Horton rose 6.8%, Burger King increased 7.2%, and Popeyes Louisiana Kitchen grew 7%.

Revenue for Tim Horton's climbed 2.6% Y/Y, Burger King rose 9.6%, and Popeyes Louisiana Kitchen increased 14.6%.

Adjusted EPS of $0.90 beat the consensus estimate of $0.86.

General and administrative expenses increased 8.3% Y/Y. The operating margin was 31.7%, and operating income for the quarter climbed 3.7% to $582 million.

Adjusted EBITDA for the quarter rose 9.3% Y/Y organically to $698 million.

Restaurant Brands held $1.3 billion in cash and equivalents as of September 30, 2023. Net cash provided by operating activities for nine months totaled $920 million. Total debt as of September 30, 2023, was $13.4 billion.

Restaurant Brands' Board of Directors has declared a dividend of $0.55 per common share, payable on January 4, 2024, to shareholders of record on December 21, 2023.

Price Action: QSR shares traded lower by 3.03% at $67.00 premarket on Friday.