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Restaurant Brands International Inc., the parent company to Burger King, Tim Hortons, Popeyes Louisiana Kitchen and Firehouse Subs, saw strong demand internationally in the second quarter, executives said Thursday.
The quick-service company, which reported earnings for the second quarter ended June 30, said it was ahead of schedule of finding a new partner for its China Burger King business and was pleased with its international performance. Same-store sales were up 2.4% systemwide.
Josh Kobza, RBI CEO, said in an earnings call, that Tim Hortons and the international division were the company’s two largest businesses.
“Tim Hortons and our International businesses, which together account for nearly 70% of our adjusted operating income, led the way this quarter,” he said. “Tims posted its 17th consecutive quarter of positive comparable sales in Canada, and our international segment delivered another quarter of strong growth.”
The remainder of the business showed “solid improvement,” Kobza said.
“I’m encouraged by the steps we’re taking to return to a more simplified business model,” he said. “This includes launching Carrols refranchising efforts two years ahead of schedule and moving with urgency to position Burger King China for success under a new partner.”
At Tim Hortons, which has a large presence in Canada, the company in April launched the Scrambled Eggs Loaded Breakfast Box, a new platform in partnership with actor Ryan Reynolds. It features 100% Canadian farm-certified eggs.
“This offering brought a delicious and uniquely Canadian voice to our breakfast business and helped drive over 10% growth in breakfast food sales in the quarter,” Kobza said.
Beverage sales grew 4% year-over-year, he said.
“We kicked off our summer lineup with new quencher flavors like pineapple, dragon fruit, and the launch of frozen quenchers,” Kobza noted. “We also introduced new and improved iced lattes, which helped drive record high espresso beverage incidents in the quarter. With new espresso machines rolling out later this year, we see opportunity to drive improved consistency and further elevate the guest experience in this high potential category.”
Burger King, which represents around 19% of RBI’s business, faced a tougher industry backdrop, he said.
“In the U.S., comparable sales grew 1.5%, modestly outperforming the burger QSR segment,” Kobza said. “On the marketing front, we’re delivering against our three focus areas: first, reestablishing relevance with families; second, reinforcing our core brand equities; and third, meeting the needs of today’s value-conscious guests.