Canada’s Restaurant Brands International (QSR), the parent company of Tim Hortons, has posted better-than-expected financial results for the fourth quarter of 2024.
The Toronto-based company, which also owns and operates the Burger King, Popeyes, and Firehouse Subs restaurant chains, reported earnings per share (EPS) of $0.81 U.S., which beat the $0.79 U.S. that was expected on Wall Street.
Revenue in the quarter totaled $2.30 billion U.S., which also topped the $2.27 billion U.S. that was the consensus estimate among analysts. Sales were up 26% from a year earlier.
Management said the sales growth during the quarter was largely due to acquisitions of its largest U.S. Burger King franchisee and the Popeyes China subsidiary.
Still, the company saw better-than-expected sales across all of its restaurant chains.
Burger King reported U.S. same-store sales growth of 1.5%, beating estimates of 0.8%.
Popeyes’ U.S. same-store sales grew 0.1%, reversing a decline in the previous quarter.
Tim Hortons continues to be the jewel in Restaurant Brands’ crown, reporting domestic same-store sales growth of 2.5%.
The popular Canadian-based coffee chain now accounts for more than 40% of Restaurant Brands’ quarterly revenue.
Overseas, Restaurant Brands’ international restaurants saw same-store sales growth of 4.7% in Q4, which was well ahead of estimates that called for a 2.7% increase.
The company credited its Burger King and Popeyes locations for fueling the international sales growth.
The company said it added 1,055 new restaurant locations in Q4, growing its footprint worldwide by 3.4%.
In terms of guidance, Restaurant Brands said that for 2025, it plans to spend between $400 million U.S. and $450 million U.S. on capital expenditures.
The company is targeting 8% sales growth this year and raised its quarterly dividend to $0.62 U.S. per share from $0.58 U.S. previously, giving it a yield of more than 3.50%.
The stock of Restaurant Brands International is up 4% on news of its latest financial results.
Prior to today (Feb. 12), the company’s share price had declined 15% over the last year to trade at $66.89 U.S. per share.
