Restaurant Brands International (RBI), a Canadian-American multinational fast food company, has announced a decline in its third-quarter profit due to various factors such as taxes and additional costs. The company reported a net income of $252 million, or 79 cents per share, compared to $360 million, or $1.17 per share, in the same period last year.
Adjusted Earnings Exceed Analyst Expectations
RBI's adjusted earnings for the quarter stood at 90 cents per share, surpassing the estimated 84 cents per share predicted by analysts, according to FactSet. Total revenues also saw an increase, rising from $1.73 billion to $1.84 billion, meeting analyst expectations of reaching $1.85 billion.
Factors Behind the Decline in Net Income
Restaurant Brands attributed the decrease in net income primarily to income-tax expenses, which contrasted with the benefit experienced in the previous year. Operating expenses and unfavorable foreign-exchange movements, along with additional higher costs, also contributed to the decline.
Strong System-Wide Sales Growth
Despite the dip in profitability, RBI witnessed a notable growth in consolidated system-wide sales, which increased by almost 11% to reach $11.22 billion, compared to a growth rate of over 13% during the same period last year. Within its largest brands, Tim Hortons experienced a 9.7% growth in system-wide sales, while Burger King saw a growth rate of over 10%. Additionally, Popeyes Louisiana Kitchen reported a significant rise of 16% in system-wide sales compared to the previous year.
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