Restaurant Brands International (NYSE: QSR), the owner of Burger King and Tim Hortons brands, reported better-than-expected profits. However, sales in the second quarter slumped as sales of the whole fast food industry fell.
As for costs, the company announced that the total operating costs decreased 17% and overhead costs fell 28% to $73.1 million in the last quarter.
Despite the declining sales, company earned a profit of $247.6 million, or $0.38 per share, from $93.8 million, or $0.05 per share the same period last year. Earnings per share excludes amortization costs increased to $0.41 from $0.30 per share. Operating margin also increased to 40.8% from last year’s 29%. The rise in earnings was owing to the reduction of expenses, which helped counteract the influence of declining sales.
“We did see some softness in the second quarter but we feel like we have the right plans in place,” said Daniel Schwartz, the Chief Executive Officer of Restaurant Brands International. “Despite the softness, we continue to grow the system and we’re growing profits per restaurant. We try not to get too caught up in macroeconomic and industry trends.”
Restaurant Brands is not the only one who reported disappointing sales results. Taco Bell announced 1% decrease of its sales and Dunkin' Donuts’ sales rose only 0.5%.
Shares of Restaurant Brands International increased 2.61% to $45.97 per share in the afternoon trading hours on Thursday.