Tim Hortons and Burger King’s parent, Restaurant Brands International (TSE:QSR) (NYSE:QSR)reported a second-quarter profit of US$9.6 million, or 5 cents per share, for the second quarter that ended on June 30.
Give that consolidation of banners Tim Hortons and Burger King had not yet occurred in the corresponding quarter of 2014, the most recent figures are compared with pro forma results calculated by RBI.
RBI’s pro forma earnings for the same quarter last year were US$31.3 million or 15 cents per share.
Tim Horton's parent company posted a total revenue of US$1.04 billion compared to pro forma sales of US$1.06 billion last year but better than analysts's expectations of US$1.02 billion. Still, the key sector measure of sales from stores open at least a year were up 5.5% on the side of Tim Hortons, while those of Burger King rose 6.7%.
RBI said its quarterly dividend has increased to 12 cents per share from 10 cents a share.
On an adjusted basis, excluding non-recurring items, RBI earned US$142.7 million or 30 cents per share. This performance exceeded the expectations of analysts polled by Thomson Reuters, who had forecast adjusted profit per share of 25 cents.
Indeed, Tim Hortons opened new restaurants at a record pace during the first half of the year, with net growth reaching a historic high of 105 new stores, said RBI’s CEO Daniel Schwartz. About 90 of these restaurants were located in Canada.
The chain also hopes to make waves in the Middle East, with its local operating partner Apparel Group. Mr. Schwartz said he had visited the region recently, in the company of CFO Josh Kobza, hoping to better understand how we should go about expanding the brand presence in this part of the world.
"I'm very excited about the progress that has been made," he said. "We studied the target markets and started to discuss with our partners around the world."
Shares of RBI were trading 1.46 percent higher at C$55 on Tuesday in Toronto