Restaurant Brands International (RBI), the parent company of Burger King and Tim Hortons, reported robust financial results for the fourth quarter of 2024, surpassing Wall Street expectations.
Financial Performance RBI posted earnings per share (EPS) of $0.81 U.S., exceeding analyst forecasts of $0.79 U.S. The company’s revenue for the quarter reached $2.30 billion U.S., topping the consensus estimate of $2.27 billion U.S. A year-on-year revenue increase of 26% highlighted the company’s strong performance.
Sales Growth Drivers RBI credited the significant sales growth to the acquisition of its largest U.S. Burger King franchisee and the Popeyes China business.
Burger King’s Recovery Burger King’s North American operations bounced back after two consecutive quarters of decline. In the U.S., comparable sales rose 1.5% in Q4, a recovery from a 0.4% drop in the previous quarter. The growth was driven by promotional efforts, including limited-time offers like a ranch dipping sauce for burgers and a special deal of selling 1 million Whopper sandwiches for $112 U.S.
Tim Hortons’ Contribution Tim Hortons continued to be a major revenue contributor, accounting for over 40% of RBI’s quarterly revenue. In Canada, where the brand operates more than 5,700 locations, the chain saw 2.5% growth in same-store sales, benefiting from strong customer demand.
International Growth RBI’s international markets saw impressive growth, with same-store sales increasing 4.7% in Q4, well above the anticipated 2.7% rise. This growth was primarily driven by Burger King and Popeyes locations overseas.
Company Expansion RBI expanded its global presence by adding 1,055 new restaurants in Q4, representing a 3.4% increase in its footprint.
Outlook for 2025 Looking ahead to 2025, RBI plans to invest between $400 million and $450 million U.S. in capital expenditures. The company targets an 8% increase in sales this year and has raised its quarterly dividend to $0.62 U.S. per share from $0.58 U.S., offering a yield of more than 3.50%.
Stock Market Reaction Following the strong earnings report, Restaurant Brands’ shares rose by 4%. However, the company’s stock had fallen 15% over the past year and was trading at $66.89 U.S. per share before the announcement.
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