Burger King parent Restaurant Brands falls short of third-quarter expectations

Restaurant Brands International on Tuesday reported quarterly earnings and revenue that missed analysts' expectations as domestic same-store sales growth for all four of its chains fell short of Wall Street estimates.

Here's what the company reported compared with what Wall Street was expecting, based on a survey of analysts by LSEG:

Restaurant Brands reported third-quarter net income attributable to common shareholders of $252 million, or 79 cents per share, unchanged from a year earlier.

Excluding items, the company earned 93 cents per share.

Net salesclimbed 24.7% to $2.29 billion, largely thanks to the company's acquisitions of its largest U.S. Burger King franchisee and its Popeyes business in China earlier this year.

The company's worldwide same-store sales grew just 0.3% in the quarter. Burger King, Firehouse Subs and Popeyes all reported same-store sales declines in their home markets.

Burger King's same-store sales fell 0.7%. Analysts had expected the metric to be flat, according to StreetAccount estimates. The chain is in the middle of a turnaround in the U.S., but consumers are also spending less at restaurants, reigniting the value wars between Burger King and its rivals.

Popeyes reported same-store sales declines of 4%, well off the expected 0.2% gain, according to StreetAccount estimates. In June, the chain launched boneless wings as a permanent menu item for the first time in its history.

Firehouse Subs saw its same-store sales shrink 4.8% in the quarter, compared with an expected decline of 0.4%, according to StreetAccount. The sandwich chain is the latest addition to Restaurant Brands' portfolio, as of 2021, and the smallest brand by footprint with just 1,300 locations as of the end of the third quarter.

Tim