Comparable sales across the company’s global system advanced 3.1 percent. International markets were the primary driver, with same-store sales outside the United States and Canada up 6.1 percent. International Burger King locations—representing the bulk of the segment—registered a 5.8 percent gain, well above the 3.7 percent estimate surveyed by StreetAccount.
Despite the stronger-than-forecast top line, Restaurant Brands shares fell about 6 percent in afternoon trading after executives said the company no longer expects to have 85 percent of U.S. Burger King outlets remodeled by 2028. Management cited elevated construction and financing costs for slowing progress on the “Reclaim the Flame” modernization plan introduced in 2022.
During the quarter, Burger King’s overall same-store sales grew 2.7 percent, modestly ahead of projections. The chain has relied on targeted promotions such as family-oriented limited-time menus to build traffic without deep discounting. Standard value offerings like the $5 duo and $7 trio meals remain in place to appeal to cost-conscious diners. Higher beef prices, however, continue to pressure margins; executives noted that wholesale beef costs climbed roughly 20 percent in 2023.
Tim Hortons, which generated 46 percent of total quarterly revenue, posted same-store sales growth of 2.9 percent. The result undershot analysts’ 3.8 percent estimate but still reflected steady demand for the Canadian coffee chain’s core beverages and breakfast items.
Popeyes lagged other banners, with comparable sales sliding 4.8 percent versus an expected 2.4 percent decline. Management attributed the shortfall to operational inconsistencies and said the brand will renew attention on execution and flagship products, including its chicken sandwich. Leadership changes were announced late last year and in January, installing a new head of U.S. and Canadian operations and a new chief marketing officer.
Imagem: Internet
Looking abroad, Restaurant Brands closed a joint-venture agreement in late January aimed at accelerating Burger King’s footprint in China. Under the deal, Chinese alternative asset manager CPE acquired roughly 83 percent of Burger King China, while Restaurant Brands retained about 17 percent and a board seat. The company said the partnership should quicken restaurant openings in the world’s second-largest economy.
Executives indicated that international expansion will remain a strategic focus in 2024. Markets in Asia-Pacific and Latin America delivered some of the quarter’s strongest comparable-sales growth. That momentum is expected to offset softer trends in certain domestic segments and the near-term profit impact of deferred U.S. remodels.
Restaurant Brands will outline additional growth initiatives at an investor day scheduled for Feb. 26 in Miami. Topics are expected to include capital allocation, development goals and operational improvements across all four brands. Broader economic conditions will also inform the company’s plans; recent consumer spending data from the U.S. Bureau of Labor Statistics show persistent inflation in food-away-from-home categories, influencing menu pricing and promotional strategies across the industry.
As of the fourth quarter, Restaurant Brands oversaw more than 30,000 restaurants in over 120 countries and territories. While the group continues to benefit from scale and diverse geographic exposure, the timetable for U.S. modernization remains a focal point for investors watching costs, franchisee economics and future traffic trends.
Crédito da imagem: CNBC
