Tim Hortons (TSX:THI)’ parent company Restaurant Brands International (TSX:QSR, NYSE:QSR) posted better-than-expected financial results for the second quarter, boosted by the Canadian coffee chain’s strong performance.
Restaurant Brands – whose other franchises are Burger King, Popeyes Louisiana Kitchen (NASDAQ:PLKI) and Firehouse Subs – posted adjusted earnings per share (EPS) of $0.86, ahead of estimates of $0.85.
Revenue jumped 17% to $2.08 billion, topping estimates of $2.02 billion.
Tim Hortons made up almost half of the group’s revenues at $1.03 billion.
The chain’s attempts to draw in customers with regular menu changes and new cold drink offerings appear to have paid off.
Same-store sales at Tim Hortons increased 4.6%, ahead of estimates of a 4.3% increase.
Tim Hortons’ strong performance offset sales declines of 0.1% at Burger King and Firehouse Subs, with the group’s same-store sales coming in at 1.9%.
Shares of Restaurant Brands traded higher on the results, adding 3.2% at about $73.