Restaurant Brands earnings top estimates as international Burger King restaurants fuel sales growth

Core Insights - Restaurant Brands International reported strong quarterly earnings and revenue, exceeding expectations due to robust international growth [1][2] Financial Performance - The company reported a fourth-quarter net income of $113 million, or 34 cents per share, down from $259 million, or 79 cents per share, a year earlier [1] - Adjusted earnings were 96 cents per share, slightly above the expected 95 cents [7] - Net sales increased by 7.4% to $2.47 billion, with organic revenue growth of 6.5% after excluding currency fluctuations and refranchising sales [2] Same-Store Sales - Same-store sales rose by 3.1%, driven by strong international performance [2] - Outside the U.S. and Canada, same-store sales increased by 6.1%, with international Burger King restaurants achieving 5.8% growth, surpassing analyst expectations of 3.7% [3] Segment Performance - Tim Hortons reported a same-store sales growth of 2.9%, below the projected 3.8%, contributing 46% to overall revenue [5] - Burger King achieved a same-store sales growth of 2.7%, exceeding the expected 2.4% [5] - Popeyes experienced a decline in same-store sales of 4.8%, worse than the anticipated 2.4% decrease [5] Strategic Initiatives - The company plans to expand its international presence, including a joint venture for Burger King China, where CPE owns approximately 83% and Restaurant Brands retains a 17% stake [4] - To address challenges at Popeyes, the company appointed Burger King veteran Peter Perdue to lead the U.S. and Canadian business and named Matt Rubin as the new chief marketing officer [6] - Further growth strategies will be discussed at the investor day in Miami on February 26 [6]