The parent of Tim Hortons is reporting a big jump in quarterly profit despite flat revenue compared with the same time last year — mostly because the negative impact of currency fluctuations offset sales growth.
Restaurant Brands International says its net income for common shareholders soared to US$90.9 million or 38 cents per share in the three months ended June 30.
That’s up from US$11.0 million or five cents per RBI share in the second quarter of 2015.
Revenue was little-changed at US$1.04 billion — including $759.8 million from Tim Hortons and $280.4 million from Burger King during the second quarter.
The company says revenues were depressed by currency fluctuations and would have been higher than last year if foreign exchange rates were constant.
Last year’s profit was reduced by one-time costs associated with RBI’s acquisition of the Tim Hortons restaurant chain.
Excluding those and other items, RBI’s adjusted net income was $192.4 million or 41 cents per share, up from $141.0 million or 30 cents per share a year earlier.
Revenue was in line with analyst estimates, but profit was above expectations. Analysts had estimated 31 cents per share of net income and 34 cents per share of adjusted earnings.
