By Neil J Kanatt
(Reuters) -Restaurant Brands reported third-quarter comparable sales above estimates on Thursday, helped by resilient traffic at its Burger King and Tim Hortons chains.
U.S.-listed shares of the company were up about 4% in premarket trading.
Menu updates and a focus on value pricing helped the Toronto-based restaurant chain operator sustain demand at its outlets, offsetting broader macro pressures that have rattled consumer confidence recently in the U.S.
Tim Horton, which generates about half of the company’s business, recorded strong demand as it is less exposed to the pressures of economic uncertainty in the U.S. It operates only around 11% of its outlets in the country.
Restaurant Brands’ second biggest business, Burger King, also enjoyed traffic growth, driven by its value offerings, including its ‘2 for $5’ and ‘3 for $7’ deals.
“Burger King is serving up value at a time when consumers are seeking deals,” said eMarketer analyst Zak Stambor.
Consumers gravitating towards cheaper meals helped Shake Shack post upbeat quarterly results on Thursday. Domino’s Pizza also reported better-than-expeted results earlier this month.
Meanwhile, Chipotle Mexican Grill cut its annual sales forecast for the third time this year on Wednesday, warning that consumer spending on dining out is likely to remain under pressure through early 2026.
Multiple brands and an extended global footprint helped Restaurant Brands sustain demand, compared to Chipotle, Thomas Curtis, president of Burger King US and Canada, told Reuters.
Restaurant Brands’ third-quarter same-store sales grew 4%, compared with analysts’ estimates of 3.2% growth, according to data compiled by LSEG. It had posted a 0.3% growth a year ago.
Same-store sales at Tim Horton’s rose 4.2%, and 3.1% at Burger King.
The company reported quarterly revenue of $2.45 billion, compared with analysts’ average expectation of $2.4 billion. On an adjusted basis, it reported profit per share of $1.03, compared with estimates of $1.
(Reporting by Neil J Kanatt in Bengaluru; Editing by Shinjini Ganguli)