Breaking News
0

Restaurant Brands (QSR) Q2 Earnings Beat Estimates, Up Y/Y

By Zacks Investment ResearchAug 04, 2019 09:08PM ET
www.investing.com/analysis/restaurant-brands-qsr-q2-earnings-beat-estimates-up-yy-200450767
Restaurant Brands (QSR) Q2 Earnings Beat Estimates, Up Y/Y
By Zacks Investment Research   |  Aug 04, 2019 09:08PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

Restaurant Brands International, Inc. (NYSE:QSR) reported better-than-expected second-quarter 2019 results. Also, its top and bottom lines gained on a year-over-year basis.

The company’s adjusted earnings of 71 cents per share surpassed the Zacks Consensus Estimate of 67 cents andgrew7.6% from the year-ago quarter number. This uptick can be primarily attributed to consistent improvement in Restaurant Brands' top line.

Total revenues were $1,400 million, which outpaced the consensus mark of $1,385 million. The metric also improved 4.2% from the year-ago quarter figure, courtesy of increased system-wide sales across the company’s brands.

Segmental Revenues

Restaurant Brands operates through three segments — Tim Hortons, Burger King and Popeye’s Louisiana Kitchen.

Revenues at Tim Hortons totaled $842 million compared with $823 million in the prior-year quarter. Also, system-wide sales rose 1.6% on net restaurant growth. Meanwhile, comps at this segment improved0.5% compared with flat comps in the prior-year quarter.

Burger King’s revenues grew from $418 million in second-quarter 2018 to $447 million in the quarter under review, mainly driven by increased franchise and property revenues. Also, system-wide sales rose 9.8%, wider than 8.4% growth registered in the year-ago comparable period. System-wide sales growth can be attributed to net restaurant growth of 5.8% and positive comps growth. Comps grew 3.6% compared with 1.8% rise in the prior-year quarter.

Popeye’s Louisiana Kitchen, which was acquired on Mar 27, 2017, reported revenues of $111 million compared with $102 million in the year-ago quarter.System-wide sales rose 8.8%, owing to net restaurant growth of 6.1% and 3% rise in comps. Notably, system-wide sales growth compared unfavorably with the prior-year quarter’s 10.7% increase. Comparable sales grew 3%, comparing favorably with year-ago quarter’s increase of 2.9%.

Restaurant Brands International Inc. Price, Consensus and EPS Surprise

Operating Performance

In the quarter under review, the company’s adjusted EBITDA rose 6.3% on an organic basis, driven by system-wide sales growth. Segment-wise, Tim Horton’s EBITDA rose 3.5%. Burger King’s EBITDA grew 10% year over year. Popeye’s EBITDA was up 4.6%.

Cash and Capital

Restaurant Brands exited the second quarter with cash and cash equivalent balance of $1,028 million. As of Jun 30, 2019, total debt was $12.3 billion. The company’s board of directors declared a dividend payout of 50 cents per share for the third quarter of 2019, payable Oct 3 to its shareholders of record at the close of business as of Sep 17.

Zacks Rank & Peer Releases

Restaurant Brands currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Darden (NYSE:DRI) reported fourth-quarter fiscal 2019 results, wherein earnings surpassed the Zacks Consensus Estimate, whereas revenues lagged the same. Adjusted earnings of $1.76 per share beat the Zacks Consensus Estimate of $1.73. Moreover, the bottom line rose26.6% year over year on higher revenues.

Domino’s (NYSE:DPZ) reported mixed second-quarter 2019 financial numbers, wherein earnings surpassed the Zacks Consensus Estimate but revenues missed the same. Adjusted earnings were $2.19 per share, which outpaced the Zacks Consensus Estimate of $2.00. The metric also grew 19% on a year-over-year basis. The bottom-line improvement was driven by higher net income and lower diluted share count as a result of share repurchases.

Chipotle (NYSE:CMG) reported better-than-expected results in the second quarter of 2019. Its adjusted earnings of $3.99 per share surpassed the Zacks Consensus Estimate of $3.69 by 8.1%. Further, the bottom line grew 39% from the year-ago quarter, backed by an increase in revenues and strong operating margins.

Today's Best Stocks from Zacks

Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.

This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.

See their latest picks free >>



Darden Restaurants, Inc. (DRI): Free Stock Analysis Report

Restaurant Brands International Inc. (QSR): Free Stock Analysis Report

Chipotle Mexican Grill, Inc. (CMG): Free Stock Analysis Report

Domino's Pizza Inc (DPZ): Free Stock Analysis Report

Original post
Restaurant Brands (QSR) Q2 Earnings Beat Estimates, Up Y/Y
 
Restaurant Brands (QSR) Q2 Earnings Beat Estimates, Up Y/Y

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email