Restaurant Brands International (NYSE: QSR), parent company to Burger King, Popeyes and Tim Hortons, reported positive quarterly earnings on Friday. Thanks to the most recent government stimulus checks, Burger King experienced a rise in spending. The company’s shares rose 3% during morning trading.
After over a year of lockdowns and restrictions, more Americans have begun to visit restaurants, ultimately boosting spending. Furthermore, the distribution of Covid-19 vaccines has instilled confidence in consumers in regards to their overall safety.
The company reported earnings of USD0.55 per share, compared to the expected USD0.50 a share. Revenue amounted to USD1.26 Billion, higher than analysts predicted USD1.25 Billion. Additionally, net income was USD270 Million, up from the previous year’s USD224 Million.
Tim Hortons noted a 2.3% fall in same-store sales, compared to the 10.3% decrease the previous year. Despite a CAD80 Million investment into advertising, Covid-19 outbreaks in Canada have impacted the coffee chain.
“Americans are experiencing a very different path out of Covid than Canadians,” Restaurant Brands CEO Jose Cil told analysts.
Burger King’s same-store sales rose 0.7% throughout the quarter, with U.S. same-store sales surging 6.6%. Nevertheless, the fast-food chain experienced a rise in temporary global store closures during the period.
McDonald’s along with KFC, recently introduced chicken sandwiched to their menus, ultimately attracting customers to the new items. Both companies noted high demand within their latest earnings calls.
Burger king is now set to bring their very own chicken sandwich to customers by later this year.