Burger King and Tim Horton's owner Restaurant Brands International (TSX:QSR, NYSE:QSR) saw its shares fall after reporting slower sales growth in the third quarter.
Sales of $2.29 billion missed the consensus analyst estimate of $2.31 billion and adjusted earnings per share of US$0.93, while up 4.6% on a year ago, were short of the expected US$0.95.
Comparable sales were up 0.3% in the three months to September 30, with net restaurants growing 3.8% versus the prior year. This compared badly to comparable sales of 1.9% in the second quarter.
The Toronto-based company revealed aggregate sales across all its restaurants, from Burger King, Tim Horton's, Popeyes and Firehouse Subs, increased 3.2% in the third quarter, down from 5% in the second.
CEO Josh Kobza hailed an improvement in consolidated comparable sales in October and said the board remains confident the group will achieve the target of 8%-plus adjusted operating income growth for 2024 and beyond.
This means for the full year, Restaurant Brands expects adjusted net interest expense to range between $565 million and $575 million.
Acquisitions of Carrols Restaurant and Popeyes China were completed in May and June, with the consolidated results revenues, expenses and segment income from both,
The stock fell 2.3% to $68.44 on Tuesday.