Restaurant Manufacturers Worldwide (QSR) Q2 2025 earnings

Restaurant Manufacturers Worldwide on Thursday reported combined quarterly outcomes, as same-store gross sales declines for Popeyes have been offset by robust demand internationally and at Tim Hortons.

Shares of the corporate fell greater than 4% in morning buying and selling.

This is what the corporate reported for the interval ended June 30 in contrast with what Wall Road was anticipating, primarily based on a survey of analysts by LSEG:

• Earnings per share: 94 cents adjusted vs. 97 cents anticipated
• Income: $2.41 billion vs. $2.32 billion anticipated

Restaurant Manufacturers reported second-quarter internet revenue attributable to shareholders of $189 million, or 57 cents per share, down from $280 million, or 88 cents per share, a yr earlier.

Excluding transaction prices from its acquisition of Burger King China and different one-time prices, the corporate earned 94 cents per share.

Internet gross sales climbed 16% to $2.41 billion.

The corporate’s same-store gross sales, which solely tracks the metric at eating places open not less than a yr, rose 2.4% throughout the quarter.

CEO Josh Kobza advised CNBC that Restaurant Manufacturers has seen a “modest enchancment” within the shopper atmosphere in contrast with the primary quarter, when the corporate’s three largest manufacturers noticed same-store gross sales decline.

This quarter, Restaurant Manufacturers’ worldwide eating places reported same-store gross sales development of 4.2%.

Tim Hortons, which accounts for greater than 40% of Restaurant Manufacturers’ complete income, reported same-store gross sales development of three.4%. In April, the Canadian espresso chain launched the Scrambled Eggs Loaded Breakfast Field with actor Ryan Reynolds, which executives known as a “huge success.”

Burger King reported same-store gross sales development of 1.3%. Its U.S. division, which has been in turnaround mode for practically three years, noticed same-store gross sales improve by 1.5%. Burger King’s home advertising has targeted on the Whopper and focusing on households with choices like its “Learn how to Prepare Your Dragon” film tie-in meal. Greater than half of its U.S. eating places have been renovated because the turnaround started; the burger chain goals to have 85% of its U.S. footprint upgraded by 2028.

“We noticed the turning level at Tims in Canada a couple of years in the past, and we’re working in direction of that very same sort of turning level at Burger King U.S.,” Restaurant Manufacturers Chair Patrick Doyle mentioned on the corporate’s convention name.

Popeyes was the laggard of the portfolio for the latest quarter, reporting same-store gross sales declines of 1.4%. However the fried hen chain’s outcomes have improved in contrast with the primary three months of the yr, when its same-store gross sales slid 4%. To raise gross sales within the second half of the yr, Popeyes has a “bunch of innovation” on its schedule, Kobza mentioned. The chain has additionally been attempting to enhance its retailer operations.

As beef costs rise and shopper preferences shift away from crimson meat, extra fast-food chains have been leaning into hen. McDonald’s launched its McCrispy Strips and introduced again its Snack Wraps, whereas Yum Manufacturers’ Taco Bell launched Crispy Hen Nuggets.

The elevated competitors has put stress on Popeyes — and certain a few of its greatest rivals, like Chick-fil-A, which does not disclose its quarterly outcomes as a result of it’s privately held.

For the complete yr, Restaurant Manufacturers reiterated its forecast, anticipating that it’ll spend between $400 million and $450 million on consolidated capital expenditures, tenant inducements and different incentives. The corporate additionally mentioned that it nonetheless expects to succeed in its long-term algorithm, which tasks 3% same-store gross sales development and eight% natural adjusted working revenue development on common between 2024 and 2028.