Restaurant Brands International (QSR) shares moved higher Tuesday after the Burger King and Popeye's parent posted stronger-than-expected fourth quarter earnings thanks in part to a big boost from online sales.
Restaurant Brands said adjusted earnings for the three months ending in December rose 30.1% from last year to 74 cents a share, firmly ahead of the Street consensus forecast of 69 cents. Group sales were up 14% to $1.55 billion, the company said, paced by gains for its Burger King and Tim Hortons divisions that offset slower-than-expected growth from Popeye's Louisiana Kitchen.
Comparable sales at Tim Hortons were up 10.3%, the group said, as local restrictions on indoor dining were eased in the wake of the pandemic, but continued to impact seating at some of its Canada-based restaurants. Burger King's comp sales, the group noted, were up 11.3% --including a 1.8% gain in the U.S. -- while Popeye's fell 0.4%.
The group will also pay a fourth quarter dividend of 54 cents per share, and targets a $2.16 payout for 2022 following last year's $1 billion purchase of Firehouse Subs.
"During the quarter, we saw sequential improvements in each brand and around the world, including notable growth at Tim Hortons Canada and Burger King U.S.," said CEO Jose Cil. "Our digital investments have been embraced by our guests, with global digital sales reaching $10 billion in 2021, up from $6 billion in 2020 and now representing about 30% of our global system-wide sales."
"In addition, our strong global network of franchisees and our development team opened over 1,200 net new restaurants, representing the highest levels of restaurant growth at Tim Hortons and Popeyes in recent history," he added.
Restaurant Brands shares were marked 3.4% higher in early trading to change hands at $59.10 each, a move that would trim the stock's six-month decline to around 9.3%.
Late last month, McDonald's Corp. (MCD) posted a 13% gain in system-wide sales, including a 7.5% increase in U.S. comps that trounced Burger King's 1.8% gain over the same period.
McDonald's global revenues were pegged at $6.01 billion, a 13% increase from last year, but a 14% surge in operating costs, owing to higher beef and chicken prices, wage increases and Covid costs, ate into it's bottom line, which came in 11 cents shy of Street forecasts at $2.23 per share.
Chipotle Mexican Grill (CMG), however, posted stronger-than-expected fourth quarter earnings that defied a host of rising input costs -- thanks in part to a 4% menu price hike in December -- as same-store sales rose 15.2% from last year
