Burger King parent’s revenue falls 25% as coronavirus weighs on sales

Restaurant Brands International on Thursday reported that its quarterly revenue plunged 25% as the coronavirus pandemic weighed on same-store sales at Burger King and Tim Hortons.

But Popeyes, powered by its popular chicken sandwich, reported same-store sales growth of 24.8%.

Shares of the company rose 2% in premarket trading.

Here’s what the company reported for the quarter ended June 30 compared with what Wall Street was expecting, based on a survey of analysts by Refinitiv:

• Earnings per share: 33 cents, adjusted, vs. 31 cents expected
• Revenue: $1.05 billion vs. $1.05 billion expected

The Burger King parent reported second-quarter net income of $163 million, or 35 cents per share, down from $257 million, or 55 cents per share, a year earlier.

Excluding items, Restaurant Brands earned 33 cents per share, beating the 31 cents per share expected by analysts surveyed by Refinitiv.

Net sales dropped 25% to $1.05 billion, meeting expectations.

Tim Hortons, which typically contributes about 60% of Restaurant Brands’ total revenue, saw its same-store sales plunge 29.3%. Even before the pandemic, the Canadian coffee chain struggled as sales growth in its domestic market slowed down. Now as the virus changes consumer behavior, chains from Starbucks to Taco Bell are reporting that fewer customers are stopping by for breakfast or their early morning java.

Burger King reported same-store sales declines of 13.4%. The burger chain’s U.S. same-store sales shrank by 9.9% during the quarter. Restaurant Brands said that sales are improving since hitting a low point in March. As of the end of July, its same-store sales were unchanged from a year ago.

Popeyes, which saw its same-store sales soar by nearly 25%, also saw its sales pick up throughout the quarter and into July. As of the end of July, its same-store sales were up by high twenties.

The company said it can’t predict the future impact of the virus on its business or when it will resume normal operations, but it does expect Covid-19 to weigh on its third-quarter results.

Read the full report here.