Burger King Parent Reports Slowing Sales Growth

Restaurant Brands International Inc.'s profit rose in the third quarter, but same-store sales growth at its Burger King and Tim Hortons chains slowed from a year ago.

Oakville, Ontario-based Restaurant Brands said Tim Hortons same-store sales rose 2%, while Burger King same-store sales rose 1.7%. Last year, same-store sales rose by 5.3% and 6.2%, respectively, at the burger and coffee chains.

Consumers recently have been pulling back from restaurant visits amid economic uncertainties and cheaper grocery prices. Rival McDonald's Corp. last week reported its gains in the U.S. market cooled further, as it tries to innovate to attract more customers.

Restaurant Brands was formed last year when Burger King, controlled by 3G Capital Partners LP, purchased Canadian coffee-and-doughnut chain Tim Hortons for $11 billion. The company has been working to expand Tim Hortons' footprint in the U.S. and internationally.

Over all, the company earned $153.8 million, or 36 cents a share after the payout of preferred dividends, up from $117.1 million, or 24 cents a share, a year ago.

Earnings excluding certain items came in at 43 cents a share, ahead of the 40 cents analysts polled by Thomson Reuters expected. Revenue came in at $1.08 billion, as analysts expected $1.06 billion.

Write to Joshua Jamerson at [e-mail]

(END) Dow Jones Newswires

October 24, 2016 09:05 ET (13:05 GMT)

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