Restaurant Brands misses estimates on weak Burger King sales

Reuters 

By Laharee Chatterjee

Restaurant Brands said comparable sales at Burger rose 1.8 percent in the second quarter, compared with a 3.9 percent increase a year earlier.

Like other fast-chains, the Whopper burger maker has struggled to attract customers in a slowing U.S. market, which is also its biggest.

Larger rival missed quarterly U.S. same-store sales estimates for the first time in at least two years.

In contrast, same-store sales at coffee chain, Tim Hortons, stabilized in the latest quarter as it overhauled stores and introduced new menu items, including "Breakfast Anytime".

Same-store sales at were flat, compared with a 0.8 percent dip a year earlier.

"We were also encouraged to see stable results at and the launch of all-day breakfast, which we believe will drive incremental traffic gains," said.

Tim Hortons is looking to tap a growing cafe culture in and said in July that it would open 1,500 coffee-and-donut outlets in the country.

The move is part of a strategy by Tim Hortons' new president, Alex Macedo, who is trying to cope with mounting competition in the industry.

Net income attributable to shareholders rose to $169.1 million, or 67 cents per share, in the three months ended June 30 from $89.5 million, or 37 cents per share, a year earlier.

On an adjusted basis, the company earned 66 cents per share, beating analysts' average estimates of 63 cents, according to I/B/E/S.

Revenue was $1.14 billion, missing estimates of $1.37 billion.

Restaurant Brands shares were down 1.8 percent at $80.99 on the

(Reporting by and in Bengaluru; Editing by Anil D'Silva)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Wed, August 01 2018. 19:59 IST