Popeyes sales surge helps Restaurant Brands beat profit estimates
Reuters
Published Aug 06, 2020 07:30
(Reuters) - Restaurant Brands International Inc (TO:QSR) (N:QSR) beat estimates for quarterly profit on Thursday as consumers queued up at Popeyes' drive-thru lanes for its hugely popular chicken sandwiches.
The global health crisis has led to an increase in demand for comfort food, boosting sales of Popeyes' fried chicken sandwiches - already a social media favorite after having stirred an internet war of words last year between the brand's supporters and those who prefer rival Chick-fil-A.
Comparable sales at Cajun-inspired Popeyes rose nearly 25% in the second quarter and come at a time when McDonald's Corp (N:MCD), Starbucks Corp (O:SBUX) and Dunkin Brands (O:DNKN) have all seen sales drop.
However, total company revenue fell 25.1% to $1.05 billion, hurt by restaurant closures early in the quarter and a drop in demand for breakfast and coffee at the company's Tim Hortons chain of restaurants.
Net income attributable to the company's shareholders fell to $163 million, or 35 cents per share, in the second quarter ended June 30 from $257 million, or 55 cents per share, a year earlier.
On an adjusted basis, the company earned 33 cents per share, beating Wall Street expectations of 31 cents, according to IBES data from Refinitiv.
Restaurant Brands said about 93% of its outlets were now open globally.
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Written By: Reuters
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