Restaurant Brands sees profits rise 18%
As Tim Hortons and Burger King’s parent company saw its profit rise 18 per cent in its latest quarter, its chief executive noticed a broader trend taking hold across the industry: slowing sales.
Restaurant Brands International Inc.’s Joshua Kobza says consumers have become “a bit more sensitive to price,” pressuring the fastfood sector, even though inflation is easing.
The shift in behaviour has left fast-food chains looking to drive more traffic to their restaurants and convince customers to drop a bit more money on every order, but Kobza tempered expectations around how far the Toronto-based company will go to counter some of the price sensitivity.
“We know value is also top of mind, and while there are a few tactical things we can do on the margin, you should not expect us to reinvent the wheel on value,” he told analysts on a Tuesday call.
Kobza’s remarks were made hours after RBI, which also owns Popeyes Louisiana Kitchen and Firehouse Subs, revealed it earned a net income of $328 million (U.S.) or 72 cents per diluted share in its first quarter, up from $277 million or 61 cents per diluted share a year earlier.
The company, which keeps its books in U.S. dollars, said revenue totalled $1.74 billion for the quarter ended March 31, up from $1.59 billion in the same quarter last year.
On an adjusted basis, it earned 73 cents per diluted share in its latest quarter, down from 75 cents per diluted share a year earlier.
Restaurant Brands International Inc.’s Joshua Kobza says consumers have become ‘a bit more sensitive to price’