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Investing.com -- Restaurant Brands International Inc. reported first-quarter results that fell short of analyst expectations, sending shares down 2% in early trading on Wednesday.
The parent company of Burger King, Tim Hortons, and Popeyes posted adjusted earnings per share of $0.75, missing the consensus estimate of $0.78. Revenue came in at $2.11 billion, below analyst projections of $2.15 billion.
Consolidated system-wide sales grew 2.8% YoY to $10.5 billion, driven by 8.6% growth in international markets. However, global comparable sales increased just 0.1%, or over 1% when adjusting for the extra day in 2024 due to leap year.
"We are making solid progress executing the fundamentals of our business, despite a slower start to the year," said CEO Josh Kobza. "We have clear growth plans across each of our brands and strong alignment with our franchisees."
The company’s Tim Hortons segment saw flat system-wide sales growth and a 0.1% decline in comparable sales. Burger King’s system-wide sales fell 1.7%, with comparable sales down 1.3%.
Despite the weak Q1 results, Kobza expressed optimism about the rest of 2025, stating: "We’re seeing encouraging momentum in Q2 and combined with responsible cost management, are on track to deliver stronger results through the balance of the year and achieve at least 8% organic adjusted operating income growth in 2025."
Restaurant Brands (NYSE:QSR) maintained its long-term outlook of 3%+ comparable sales growth and 8%+ organic adjusted operating income growth on average from 2024 to 2028. The company now expects to reach 5%+ net restaurant growth towards the end of that period.