Restaurant Brands Misses Earnings as Sales Decline

Restaurant Brands International published Q1 financial results which showed lower earnings and revenue than Wall Street analysts predicted while same-store sales at Burger King Popeyes and Tim Hortons decreased. The company generated adjusted earnings of 75 cents per share which fell short of the 78-cent forecast and achieved revenue of $2.11 billion that was lower than the $2.13 billion projection. The company generated $159 million in net income which translated to 49 cents per share compared to $230 million and 72 cents during the previous year. The same-store sales increased by only 0.1% while Tim Hortons declined by 0.1% and Burger King increased by 1.3% and Popeyes grew by 4% but failed to meet market expectations. CEO Josh Kobza explained that Q1 performance was weak because consumers remained cautious and weather conditions were unfavorable yet he mentioned that Q2 showed positive signs through the Tim Hortons breakfast launch featuring Ryan Reynolds. International sales rose 2.6%. The company maintained its 2025 forecast which includes $400–450 million in capital expenditures and 3% same-store sales growth. The stock price increased by more than 1% during the first part of the trading day.