Burger King Owner’s Profit Tops Estimates as Bargains Help Sales

2016-10-24 08:38:01

Burger King Owner’s Profit Tops Estimates as Bargains Help Sales

By Leslie Patton, Bloomberg News

Restaurant Brands International Inc., which owns Burger King and Tim Hortons, posted third-quarter profit that topped analysts’ estimates as new items and discounts at the burger chain lured customers.

Earnings were 43 cents a share, excluding some items, the Oakville, Ontario-based company said in a statement Monday. That beat analysts’ 40-cent average estimate. Burger King’s same-store sales rose 1.7 percent, excluding the effects of currency exchange-rate fluctuations.

Burger King’s results show it may be defying a broader industry slowdown driven by cheaper prices at the grocery store and uncertainty around the U.S. presidential election. The chain has been advertising deals such as 10 chicken nuggets for $1.49, and new foods including a Whopper burrito with queso sauce.

The stock rose 3.2 percent to $47 on Friday in New York, before the results were released. Restaurant Brands has gained 26 percent this year.

Comparable-store sales rose 2 percent at Tim Hortons on a constant-currency basis.

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