The parent of Tim Hortons and Burger King missed analyst estimates for first-quarter revenue and adjusted earnings, but the company says it got 2015 off to a good start at the operational level.
Restaurant Brands International said it had US$932 million of total revenue for the three months ended March 31, little-changed from what it would have had last year if the two companies had been combined.
Revenue from the Tim Hortons portion of the business, reported in U.S. dollars, was US$682.4 million — down $8.3 million or 1.2% from a year earlier.
The company said the Tim Hortons revenue were dampened by foreign exchange fluctuatations and would have been 11% higher than a year ago of the dollar’s value was constant.
An $8.7-million increase in Burger King’s revenue, which rose to $249.6 million, offset the decline at Tim Hortons.
Comparable-store sales were up at both segments, with Tim Hortons showing a 5.3% increase and Burger King rising 4.6% from the first quarter of 2014.
“We are off to a strong start in 2015, having achieved one of our best quarters of comparable sales growth in years for both of our iconic brands,” said Daniel Schwartz, chief executive officer of Restaurant Brands International.
“We have established a solid foundation in our first full quarter as RBI and will look to build on this momentum throughout the rest of the year.”
Restaurant Brands also reported an $8.1 million net loss attributable to shareholders and adjusted net income was $83.6 million. On a pro-forma bais, the year-earlier loss would have been $226.5 million and adjusted net income would have been $61.7 million.
Analysts had estimated $949.65 of revenue for the quarter, according to estimates compiled by Thomson Reuters.
